Free Zone Company In Dubai
Forming a free zone company in Dubai is one of the more popular methods to set up a business as a foreigner in the city. The main advantage, as most people would know, is that contrary to the 51% shareholder requirement for Dubai mainland companies, in this case, owners can retain full ownership of their business.
The advantages of a free zone setup do not end here though. This system also facilitates securing a visa, and international trade.
Trading in the UAE on the other hand must take place at the hands of a local distributor, and the business will need to register an office. A sponsor is not required.
The following includes more detail of the advantages of choosing to locate in one of the freezones:
- Retain full ownership of your business as foreign national
- No limits of sending profits home
- Guarantee of no personal or corporate tax for several years
- High-quality infrastructure and warehouses provided by authorities
- Efficient office and transport facilities
- No import or export duties from the most part
- No hiring limits for workers of foreign origin
Free Zone Industrial Focus
Each of the free zones is Dubai has a special focus in terms of industry and trade. The Jebel Ali Free Zone (Jafza) for example, is one of the oldest and diverse, and hosts business pertaining to heavy industry, manufacturing, and distribution.
Some of the other notable free zones that the best pro services company in Dubai can help you set up in include:
The Dubai International Financial Center (DIFC), which is home to many large lending and financial service institutions. It is regulated by the Dubai Financial Services Authority.
The Dubai Multi Commodities Center (DMCC) deals in the trade and exchange of may precious commodities, including gold and diamonds.
Other major free zones include the Dubai Technology Park, the Dubai Textile City, and the Dubai Silicon Oasis (DSO).
As with the other avenues of setting up a business in the city, there are disadvantages to the freezone setup as well. This does not mean this mode is not suitable, but rather that it must be chosen for the right kind of business and compatibility.
A major drawback in comparison to businesses located in the main limits of the city is that the rent of office here is high, and the products produced cannot be sent to the local market directly.
To do this, a local entity, which is fully owned by a national must be used, and involves an import duty.