Reasons to Set Up a Company in a Free Zone

Reasons to Set Up a Company in a Free Zone

Simply put, it’s a smart move of several well-established corporate companies. Right off the bat, establishing a business in one of the UAE’s 45 free zones is wise. Over 30,000 multinational businesses currently trade in the free zones alone without any barriers to entry. Setting up shop in the right free zone can get you noticed and it can give your business the much-needed boost to start making money.

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Nothing to worry about taxes:

There are several reasons why entrepreneurs are attracted to acquire company ownership in the free zone. For one, there are no taxes to worry about and no need for local administration functions. That means reduced expenses and that means bigger profits. Another reason is a strategic location. Since most business ventures do not start in the most auspicious of locations, entrepreneurs will find an area with lots of potentials. These areas, in turn, will see a boost in property values and rental returns as the economy starts growing.

Easy to incorporate ownership:

In addition to company owners in the free zone, entrepreneurs will also find it very easy to incorporate. This is because the rules for doing so are laid down by the government and there are no restrictions whatsoever. Additionally, entrepreneurs can save a lot of money by dealing with a foreign entity to incorporate. Companies that do not want to shell out money on local administration fees can go with a foreign-owned firm because they know that they will not have to deal with personal tax regulations.

Allow you to operate the business from a foreign country:

Of course, personal tax isn’t the only reason why many big names in the world of business consider company incorporation in the free zone in Dubai. Many companies choose to establish their headquarters here simply because the business setup allows them to operate from a foreign country. This means that they won’t have to pay customs taxes or benefits like employees in other countries. Additionally, they will not have to adhere to certain labor laws. All of these things are appealing to foreign investors.

However, for individuals who are interested in company incorporation in the free zones, there are a few other important considerations that need to be addressed. For instance, the need to apply for business licenses will differ depending on the type of business that an individual plans to set up. If the business is something that will be strictly for non-residents of Dubai, then entrepreneurs may not have to worry about business licenses at all. 

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