Introduction – What is a free zone?
A free zone is a place that applies legal and administrative regulations regarding business activities and financial and economic aspects in a country. It offers attractive incentives for industrial and commercial activities, physically separated from other parts of the country.
What is UAE Free Zone?
Freezone in the UAE is an area within the United Arab Emirates with specific regulations to facilitate foreign investment in the UAE.
Benefits of Free Zones for Foreign Investors
Foreign investors get the following 10 benefits of a Free Zone in the UAE.
1. 100% Foreign Ownership: One of the most evident benefits a foreign investor would get at the time of company formation in the UAE without finding a UAE national sponsor.
2. 100% Repatriation of Capital & Profits: A free zone allows foreign investors to transfer their profits to their home country.
3. Fast& Easy business setup procedures: The free zones offer an easy company setup and paperless procedures required for obtaining an instant license.
4. Developed business communities: Besides incorporating the company, the Free Zone in the UAE lets you perform hassle-free business activities.
5. Numerous options at competitive costs: Damaar offers numerous investment options at competitive costs for incorporating your company.
6. 100% exemption from corporate & income taxes: Real individuals and legal entities would get a complete exemption from corporate and income taxes when they perform manufacturing activities in a free zone.
7. 100% exemption from customs duty: The residents and investors in the UAE would get 100% customs duty exemption when goods enter into free zones, which reduces their tax. It encourages the importers and exporters to use the Free Zone fully.
8. Independent laws and regulations: The independent laws & regulations in UAE Free Zone allow the firms to run their business free from regulations.
9. Easy Regional Global Market Access: A free zone does not entirely adhere to the customs regulations and has access to the global market, which helps businesses to carry out their activities without any hassles.
10. Modern & sophisticated infrastructure: Free Zones keep updating their infrastructure periodically and aims to offer better facilities to foreign investors.
Major Free Zones in Dubai
* Dubai Airport Free Zone – It serves as a logistics trade hub in the region, offering an excellent infrastructure, strategic location, tax exemptions, and is open to all currencies.
* Dubai South Free Zone – It is Dubai’s most significant single urban master development that deals with the aviation and logistics ecosystem and offers business-friendly free zone benefits.
* Dubai Media City – It is a tax-free zone that limits to middle east countries like Dubai and UAE.
* Jebel Ali Free Zone – It is the largest Free Zone in the world and a community for ecosystems designed for logistics, e-commerce, petrochemicals, and other industries.
* Dubai Gold and Diamond Park are leading gold and diamond jewellery marketplaces.
Conclusion
A Free Zone in the UAE is the recommended option for business entrepreneurs who wish to form a company in Dubai and UAE.A free zone’s objective is to ensure your business’s smooth functionality without any hassles. Reach us at Damaar for more details.
