The UAE has been one of the finest destinations for entrepreneurs worldwide. Having a strategic location at the heart of the world’s largest and fastest emerging markets, with low tax and a government that is committed to supporting and nurturing business, it is very obvious why everyone would want to stary a business here.
Although there are many convincing factors why anyone would want to get the headlines. Another important reason why many people come to UAE to do business is free zones.
Those who are thinking about starting a business in UAE would want to know about free zones.
What is UAE Free Zones?
UAE free zones are the pecuniary areas where services are traded mostly at customer rates and preferential tax. The purpose of these free zones is to boost international free zone start-ups UAE. There are many benefits such as 100% foreign company ownership. At present, there are 45 free zones across the UAE having connections with various sectors from healthcare to merchandises trading and tech at the premier’s hub.
Over the years, the free zones have advanced and offered increasing compensations to the businesses within them. The free zones are catering various industries and some specific business types.
Why Should You Set Up in a Free Zone?
If you are thinking about a free zone start-up UAE, there are plenty of reasons to do that.
· It Offers an Easy Start-up
Setting the business in the free zones is incredibly easy and straightforward. The application process basically depends on the type of business and the chosen free zone. However, in many cases, all you need to do is provide some important documents such as passport copies and business correspondence.
The whole process takes a week or two to complete. Some free zones also offer you virtual packages and Flexi-desk, allowing you to make use of these zones to address and facilitate on an ad-hoc basis.
· Tax Regime
One of the reasons why many entrepreneurs prefer free zone start-up UAE is because of the tax regime. Not only do you get to set up in a free zone, but you also benefit zero percent corporate and personal tax. In addition, free zone trades are exempted from import and export tax too, and they can trade with no currency restrictions.
· Free Zone Business Allows you to have Foreign Ownership
Another major plus to setting your business in a free zone is foreign ownership. The majority of entrepreneurs want to set up their business in UAE, and they are required to talk with local partners to do business.
However, this is not the case in UAE-free zones. You can easily set up a business here and enjoy full ownership of it.
· Trading Methods
Though free zone businesses are not permitted to trade directly with the local market in UAE. However, this issue can easily be resolved. One of the options that business owners can follow is to work with a locally selected supplier who can put your services or products into the market in return for a price or fee.
Another option is establishing your business in a free zone and then opening branch offices of your free zone company throughout the Emirates.
· Support During Setup and Beyond
The free zone authorities offer you support and assistance not only during setup but after that also. Many authorities assist with the visa application. Some assist with the opening of cooperate bank account and give advice on the best bank to suit your needs.
· Ensure Privacy Protection
Free zones are also popular with privacy cognizant entrepreneurs, and there is no open directory to the company ownership. The details of the company are never disclosed or shared with anyone.