One of the major benefits of free zone company setup in UAE is full foreign ownership. It means that the foreign investor can have 100% ownership of the company as compared to the mainland company in the UAE. Hence, the foreign investor does not need a UAE national sponsor for the business setup. Also, it is regardless of the nationality of the investor.
Setting up a business in Dubai, Abu Dhabi or the rest of the UAE can be a complex task. In recent years, free zones have opened to small businesses, consultants and freelance permit UAE, etc.
No Currency Restrictions
Currency regulations are related to the currency restrictions imposed by the government. These restrictions are usually on foreign exchange transactions. In the UAE free zones, there are no currency regulations, which means that any type of currency can be used for business transactions. Hence, it makes the transaction process easier for all foreign business owners.
Easy Immigration Process
UAE-free zones provide easy, efficient, and time-saving immigration facilities. Several benefits are as follows:
- 100% personal or corporate income or profits tax exemption
- Corporate tax exemption for 15 years, with an option to renew for another 15 years
- No capital deposit required
- Easy access to systems of air, rail, and road transport regions of Asia
- Providing world-class infrastructure with an efficient communication system
- Low start-up and operating cost
Import/Export Exemption
Import and export tariffs do not apply to the UAE free zone jurisdictions. It will be a huge saving factor and attract businesses of import and export. This helps promote international trade and maintain relationships with different countries.
Full Repatriation of Capital and Profits
Companies are entitled to full repatriation benefits. It includes financial assets and profits. It means that the foreign person has the right to take all the profits obtained in the business to his country of origin.
Free Zone Business Branch
Three legal frameworks are offered by most free zones while setting up a business:
- A limited liability company with one corporate shareholder
- A limited liability company with one physical shareholder
- A branch of a foreign or UAE company.
Any company can establish a branch in a free zone and is considered an extension of the foreign company. It remains legally responsible for its activities. The main thing to consider with a branch is the tax. All taxes must be paid in the jurisdiction of the parent company.
Bank Account
Normally every business is required to open a business bank account before they can apply for their business license. However, some banks may ask to see a copy of the company’s business license before creating the account. To avoid this, always seek advice from the Free Zone of your choice. It will have helped many companies to set up and can thus recommend the best-performing banks to you. Also, it is possible in some cases to open a business bank account with only the initial documents. Hence, the account will be fully opened once you have the final business license.
In Conclusion
Company setup in UAE has been easier for the past few years due to consultants and free zone incentives. A free zone company allows the investors to use their money in the right location for the business. The incentives such as tax exemption in the free zone company allow the investors to use their money for growing and expanding the business activities. Also, there are import/export exemptions for the free zone companies. Hence, setting up a business in a free zone comes with a lot of benefits rather than downsides. For more information about freezone companies, contact us at CMSBIZ.
Fixie owner, vegan, ukulelist, reclaimed wood collector and doodler. Making at the fulcrum of aesthetics and function to answer design problems with honest solutions. German award-winning designer raised in Austria & currently living in New York City.