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Company Formation & Registration, Incorporation in UAE Free zones
- Many businesses drops their plan of investing in the UAE ( United Arab Emirates ) due to the mandate law of having a UAE national as a 51% share holding. This has lead free zones to become a popular choice of business registration in Dubai and all across the UAE, where lawfully 100% foreign ownership is permitted.
- A free zone / free trade zone is a designated area which has special tax-free status and minimal trade restrictions where goods can be produced, assembled, import/export, or reconfigured without paying any customs duty.
- UAE Free zones are developed strategically at geographic locations like national borders, international airports and major seaports, so that the business owners can reap maximum trading advantages for their business.
- The UAE government has developed multiple free zones in the country, each designed with the theme to support businesses of specific sector.
- UAE free trade zones offer lucrative facilities to foreign corporates, like the convenience of single-window administration, no bureaucratic red tape, and 100% ownership. There are about 44 free zones spread all over the United Arab Emirates, with many more coming up. They have attracted foreign direct investment in the form contributing to the non-oil GDP growth of the national economy. The free trade zones vary in their location, types of business it supports, setup costs and paperwork needed.
Benefits of Setting Up a Business in the UAE Free Zones
There are many benefits of setting up a business in the UAE. But the UAE free zones offer some additional advantages to its investors. They are:
- 100% foreign ownership
- 100% repatriation of capital and profits
- 100% exemption from corporate, personal and income taxes
- 100% free transfer of funds, and no foreign exchange controls
- Exemption from all import and export duties & Low freight charges
- Abundant and inexpensive energy
- Inexpensive workforce, and easy recruitment procedure
- Liberal government policies and legal framework
- The timely and streamlined immigration process
- Sponsorship and visas for an affordable skilled workforce
- Flexibility to operate 24/7
- Freehold offices available for sale or lease ( In some free zones )
- Ready-made offices, factories, and warehouses
- Easy start-up and licensing procedures
- Unique industry clustering and purpose-built infrastructure
- 3-year UAE residence visa
- No restrictions on hiring expatriates
Special Note:
- Free zone companies are not allowed to operate directly on mainland in UAE. Either they need distributor located on mainland or need an approval from Department of economic development to operate on mainland.
- Free zone companies are suitable for those who do not have any business activity focused on mainland.
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