What is freezone?
The UAE is one of the most sought after locations in the world for people to set up their business. The economy is now dependent on innovative and creative ways to grow as well as on investments and businesses. This is why the government works hard to make the laws and regulations business friendly. This is also true for setting up a business in the freezone. But before getting started, let’s know more about free zones.
The UAE has three jurisdictions to choose from. These are Offshore, free zone and mainland. These options offer the entrepreneurs a wide range of options to choose from when setting up their Dubai Free Zone company formation
The UAE has seven emirates, and each of these has many free zones of its own. This article addresses all the aspects of free zones and UAE free zone company formation.
What is the concept of “free zones”?
Free zones are based on the principle of autonomy. The free zones have their own authorities that take care of the licenses and business activities that take place in the free zone. The authorities operating each free zone are different from each other. The rules and regulations of the free zone’s business activities are set by these authorities only. It is also essential that the business person follow and comply with these rules and regulations. Doing so is essential for Dubai Free Zone business setup.
What are free zones in the UAE?
Free zones in the UAE are those areas where the custom duty rates are 0% and they are also called free trade zones. They let the owner have 100% ownership of their business and also let them repatriate all the funds to their home nation. This is why UAE free zone company setup lets you get the best services for your business.
Each emirate in the UAE has their own free zones and allows people to do different activities. This leads to a better organisation and understanding of the market for entrepreneurs.
Why should you set up your own business in a free zone?
When opting for business setup in Dubai free zone, people get the below mentioned benefits-
- It is easy to setup here
- It is also easy to freelance here
- Low tax rates attracts many people from around the world
- The location gives it an upper hand in trade related services.
It is easy to setup in a free zone since the authorities that need to be approached are the respective free zone authorities. The way to setup will depend on the freezone you decide to setup in and the activity that you choose for your business. The many free zones to choose from allow you to have a wide range of options to setup your business. You can also opt for flexi-desk or virtual offices in free zones.
Most of the people setup in the free zones since they offer an unbeatable tax rate. People benefit from no personal tax and corporate taxes are also at a lower rate. Those from the qualifying free zones do not have to pay the corporate taxes as well. These areas are also exempted from import and export duties. There are no restrictions imposed on the currencies. The businesses here are also exempt from VAT.
People with free zone companies can own 100% of their businesses in the free zones in UAE as expats. Moreover it is also possible to repatriate 100% funds to your native land.
How do I set up a business in a free zone?
We just went over the benefits of setting up a business in a free zone. Now, let’s throw some light over the steps of business setup in Dubai free zone-
- Choose the business activity you want to take up- This includes multiple activities that are permitted in the free zones. You can choose the activity and get started.
- Decide your company name – Pick the company name you want. It should be unique and should represent your company well. It is also essential to keep in mind that you do not choose an already taken name or include any offensive word in the name.
- Submit your documents– collect the necessary documents and submit them according to your company type and the freezone where you are setting up your business. The documents will vary according to the freezone you choose and also on your business activity.
- Get the licence- You will get your licence in 4 to 5 working days and can get started with your business activity.
- Open a corporate bank account- You will need a corporate bank account in Dubai to manage your funds which will aid in transactions of your business.
How can RadiantBiz help you in setting up your business in a freezone?
Setting up a business in a free zone can help you take advantage of the business friendly environment of the UAE. You can avail of benefits that can help your business grow.
To get your business started, you just need to get in touch with a trusted company setup consultant in Dubai. This can be done with the help of RadiantBiz. Our experts have been in the industry for over 12 years and can help you get all the support you need. Contact us today to get started and get the help you need for your business.