Benefits of Business setup in UAE Free zones
The UAE free zones have become popular for businesses looking to expand their regional operations. Free zones in the UAE cater to various industries, including technology, finance, healthcare, and logistics. They offer businesses a range of facilities and services, including office space, warehousing facilities, and access to business support incentives that make it easier for businesses to operate and grow in the region.
UAE free zones
Free zones are special economic zones or jurisdictions offering financial and tax benefits for businesses. In all, the seven Emirates have almost 40 free zones. "Free Zone Authority" refers to the government controlling a free zone. The Free Zone Authority, or FZA, is the governmental organisation responsible for the crucial free zone operations and licence issuance tasks.
In a free zone in the United Arab Emirates, an investor may establish one of the following two types of companies.
· Free Zone Limited Liability Company (LLC) or Free Zone Company (FZ Co.)
· Free Zone Establishment (FZE)
The top listed Free Zones in UAE:
· International Free Zone Authority (IFZA)
· Sharjah Media City Free Zone (Shams)
· Sharjah Publishing City Free Zone (SPCFZ)
· Ras Al Khaimah Economic Zone (RAKEZ)
· Jebel Ali Free Zone Authority (JAFZA)
Free zones catalyse economic growth by encouraging foreign direct investment (FDI). These zones are a primary point for businesses looking to work with clients throughout the UAE and GCC via regional distributors. Businesses under freezones often aren't allowed to operate on the mainland; they can only do so abroad and within the Free zones.
Benefits of establishing a business in a Freezone:
1. Complete Foreign Ownership
Full foreign ownership is one of the most advantages of establishing a free zone company in the UAE. So, a UAE national sponsor is not required for the foreign investor's firm to be formed. With no need for local sponsors, the foreign owner of the business owns the entire company. Whatever the investor's nationality, foreign ownership is permitted.
2. Not Limited by Currency
Government-imposed limitations on using foreign currencies in transactions are known as currency rules. Foreign entrepreneurs will find the transaction procedure more straightforward as there are no currency restrictions in UAE free zones.
3. Exemption for Import and Export
UAE free zone jurisdictions are exempt from import and export taxes. It significantly reduces costs and draws import and export companies. It aids in advancing global trade and preserving diplomatic ties with many nations.
4. Complete Remittance of Capital and Profits
The businesses qualify for all repatriation advantages. The foreign individual has the legal privilege to repatriate income and profits fully.
5. Recruiting Employees is Simple
Companies operating in free zones can efficiently and economically handle the paperwork associated with hiring new employees.
6. Easy incorporation of a business
Simple steps are required to incorporate a firm in a free zone. Compared to other jurisdictions, you might complete the licence requirements in a matter of days, making the start up procedure uncomplicated.
How can Ascent Partners help?
Ascent Partners is a boutique consultancy providing bespoke, end-to-end corporate services ranging from company formation to accounting, bookkeeping, and compliance services for entrepreneurs looking to set up their next venture in the UAE. We work alongside to strategise, startup, and scale businesses in the UAE and the broader region.
With a combined experience of 50+ years, our expert consultants provide reliable and unparalleled guidance throughout all strategic phases of a business' evolution.