Dubai City - Free Zone Business
Dubai City Free - Zone Business
Business in Dubai is a hot topic worldwide, mostly because of the prosperous economic environment and incredible incentives offered to foreign investors. For non-GCC nationals, the best option for setting up business in Dubai is to select a free zone. Free Trade Zones (FTZ), loosely termed as free zones, are ideal for foreign investment ventures and has a diverse range of incentives, infrastructural facilities and conveniences for long-term business operations. To date, the free zones alone have managed to draw a huger number of business establishments and direct foreign investment, while expanding the overall non-oil industry profits in Dubai.
Typically, the advantages of setting up business in a Dubai free zone include six major aspects. These are 100% foreign ownership of business, 100% import and export tax exemption, 100% capital and profits repatriation, 15-year corporate tax exemption (renewable for another 15 years), no personal income tax and comprehensive support with residency sponsorship, accommodation, staff recruitment and office premises. Each free zone is governed and regulated by an independent Free Zone Authority (FZA) and this is the official body responsible for issuing business licences and providing support facilities and services new businesses within the free zone.
Both new business and branch or representative offices can be established in a free zone. The types of company formations allowed in free zones are Free Zone Establishment (FZE) and Free Zone Company (FZC). The exact business activities carried under a particular company is what distinguishes whether it’ll be a free zone establishment or a free zone company. By law, companies within free zones can only conduct business within the free zone and countries outside of UAE. However, since this poses several restrictions on normal trading activities and other business operations, provisions are available to include an official agent from the UAE for selling products and services within the country.
When there are no environmental issues to be considered, a free zone-based business can be easily set-up and ready for operation within 2-3 weeks. All procedures are direct and well-organized and will be handled exclusively by the Free Zone Authority. A few forms are to be filled and submitted, including a set-up application, utilities request, office space leas agreement and project plan.
