Do you want to save taxes legally while doing business in one of the most dynamic and prosperous regions in the world? If yes, then you should consider setting up a Dubai Free Zone company.
A Dubai Free Zone company is a type of business entity that enjoys special benefits and privileges in terms of taxation, regulation, ownership and operation. It is established within a designated area that is governed by its own rules and regulations, separate from those of the mainland UAE.
In this article, we will explain what are the advantages of setting up a Dubai Free Zone company, how to choose the best free zone for your business needs, and how to go through the process of company formation with ease and efficiency.
What are the benefits of setting up a Dubai Free Zone company?
Setting up a Dubai Free Zone company can offer you many benefits that can help you grow your business and save money. Here are some of them:
- Tax-free environment: You can enjoy 100% exemption from corporate tax, personal income tax, import and export duties, and value-added tax (VAT) for up to 50 years. This means you can keep more of your profits and reinvest them in your business.
100% foreign ownership: You can own 100% of your Dubai Free Zone company without having to partner with a local sponsor or agent. This gives you full control over your business decisions and operations. - Easy access to markets: You can benefit from the strategic location of Dubai as a gateway to regional and global markets. You can also leverage the excellent infrastructure and logistics facilities available in the free zones, such as airports, seaports, roads, railways, telecommunications, etc.
- Flexible legal framework: You can operate under a legal system that is based on international standards and best practices. You can also benefit from simplified procedures for licensing, registration, immigration, labor, customs clearance etc.
- Access to incentives and support services: You can avail various incentives and support services offered by the free zone authorities such as free or subsidized utilities, land leases, office spaces, warehouses, factories, etc. You can also access various business development programs, training courses, networking events, consultancy services etc.
How to choose the best free zone for your business?
There are currently 24 free zones in operation in Dubai1, each catering to specific sectors and industries such as ICT, media, finance, gold and jewellery and health care1. Some of the most well-known free zones include:
- Dubai Airport Freezone (DAFZ): A dynamic business hub located at the very heart of global trade2. It offers ideal opportunities for businesses involved in aviation, logistics, pharmaceuticals and engineering2.
- Dubai International Financial Centre (DIFC): A leading financial hub that offers a range of advantages for financial and professional services companies3. It provides a tax-free environment, a legal system based on Common Law and a dedicated regulatory framework3.
Dubai Multi Commodities Center (DMCC): A vibrant free zone that hosts over 22,000 businesses involved in trading commodities such as gold,diamonds, tea,coffee etc.4 It offers world-class facilities such as vaults,refineries, laboratories etc.4 - Dubai Internet City (DIC): A digital ecosystem that hosts over 1600 companies ranging from startups to global giants such as Google,Facebook, Microsoft etc.5 It offers state-of-the-art infrastructure,connectivity and support services for businesses involved in ICT,software development, e-commerce etc.5
- Dubai World Trade Centre (DWTC): A prestigious free zone that hosts over 500 events annually attracting millions of visitors from various industries and sectors. It offers a prestigious address, world-class facilities and a vibrant business community.
These are just some examples of the many free zones that Dubai has to offer.
To choose the best free zone for your business, you need to consider factors such as:
- Your business activity and sector: Different free zones have different specializations and licensing options for various types of businesses. You need to find a free zone that matches your business activity and sector and offers the relevant permits and approvals.
- Your budget and requirements: Different free zones have different costs and requirements for setting up a company. You need to find a free zone that fits your budget and meets your needs in terms of share capital, office space, visa quotas, etc.
- Your future plans and goals: Different free zones have different opportunities and challenges for growing your business. You need to find a free zone that supports your future plans and goals in terms of market access, networking, innovation, etc.
To help you make an informed decision, you can consult with a professional company formation expert who can guide you through the process of choosing the best free zone for your business.
How to set up a Dubai Free Zone company?
Once you have chosen the best free zone for your business, you can proceed with the process of setting up your Dubai Free Zone company. The process may vary slightly depending on the specific free zone authority, but generally it involves the following steps:
- Choose a legal structure: You can choose between different legal structures such as Free Zone Establishment (FZE), Free Zone Company (FZC), Branch Office or Representative Office. Each legal structure has its own advantages and disadvantages depending on your business needs.
- Choose a trade name: You can choose a trade name for your Dubai Free Zone company that reflects your brand identity and complies with the rules and regulations of the free zone authority. You need to check the availability of your desired trade name before applying for it.
- Apply for a trade license: You need to apply for a trade license that corresponds to your business activity and sector from the relevant free zone authority. You need to submit all the required documents such as passport copies, business plan, bank reference letter etc.
- Register your company: You need to register your Dubai Free Zone company with the relevant free zone authority by paying the registration fees and submitting all the required documents such as memorandum and articles of association, share certificates, board resolution etc.
- Open a bank account: You need to open a bank account for your Dubai Free Zone company with one of the local or international banks operating in UAE. You need to provide all the necessary documents such as trade license copy, registration certificate copy, passport copies etc.
- Apply for visas: You can apply for visas for yourself and your employees from the relevant free zone authority by paying the visa fees and submitting all the required documents such as passport copies, medical reports, employment contracts etc.
The process of setting up a Dubai Free Zone company may take anywhere from 2 weeks to 2 months depending on the complexity of your case and the efficiency of the free zone authority. However, once you have completed the process, you can enjoy all the benefits of operating a Dubai Free Zone company and save taxes legally.
Conclusion
Setting up a Dubai Free Zone company can be a smart move for your business if you want to take advantage of the tax-free environment, the 100% foreign ownership, the easy access to markets, the flexible legal framework and the access to incentives and support services that Dubai offers.
However, choosing the best free zone for your business and going through the process of company formation can be challenging and time-consuming without proper guidance and assistance.
That’s why we have created a special offer for you. If you click on the link below, you will be taken to our video sales letter (VSL) that will show you how we can help you set up your Dubai Free Zone company with ease and efficiency.
We are a team of professional company formation experts who have helped hundreds of clients from different countries and industries to set up their Dubai Free Zone companies successfully. We have the experience, the knowledge and the connections to make your company formation process smooth and hassle-free.
We will handle everything for you from choosing the best free zone for your business, to applying for your trade license, to registering your company, to opening your bank account, to applying for your visas. We will also provide you with ongoing support and advice after your company is set up.
We offer a full white glove service that is tailored to your specific needs and goals. We guarantee 100% satisfaction and transparency throughout the process.
So don’t wait any longer. Click on the link below and watch our VSL now. You will discover how we can help you save taxes by setting up your Dubai Free Zone company in no time.
Click here to watch our tax saving video now.