Why Set Up in a Free Zone?
Ease of Business Setup
The business setup process in most free zones is very easy. The particular application process will depend on your company and the free zone selected, but in most cases, all you need to do is provide some basic documents, such as copies of passports and business documents. The whole process often only takes a week or two. Many free zones also offer flexible desks and virtual plans that allow you to use the free zone addresses and facilities on an ad hoc basis for convenience.
Tax and Duty
This is perhaps the most captivating purpose for choosing the free zone: the tax regime. Your company is established in a free zone and benefits not only from 0% corporate and personal taxes but also from VAT, which is currently 5%. And that's just the tip of the iceberg. Companies in the free zone are also exempt from import and export taxes and can trade without currency restrictions.
Foreign Ownership
Another major advantage of being in the free zone is the ownership of a foreign company. Most overseas entrepreneurs are looking to set up business in the UAE mainland and need to work with local partners to do business. This is not the case in the UAE free trade zone. Set up your business here and you will retain 100% ownership of it.
Trading within the UAE
Free zone companies are not allowed to deal directly with the local UAE market, but this is easy to overcome. One option is to work with a local distributor who will bring your goods and services to market for a fee. Instead, it may be possible to set up your free zone business and then branch office of your free zone company in Emirates at a later date. These offices can be used to promote your packages and start a business in UAE.
Privacy Protection
Finally, free zones are very popular among data protection entrepreneurs because there is no open directory of company properties and company information such as shareholder information is never released to the public.
