Dubai’s Free Zones are the perfect launchpad for entrepreneurs and businesses looking for a hassle-free setup with maximum benefits. Designed to attract foreign investment, Free Zones offer 100% ownership, full profit repatriation, and a business-friendly environment. With over 45 Free Zones catering to different industries, Dubai provides the flexibility and infrastructure required for your company to thrive.
Why Choose a Free Zone License in Dubai?
- 100% foreign ownership
- No personal or corporate income tax
- Full repatriation of capital and profits
- Quick and efficient company setup
- State-of-the-art business infrastructure
- Access to world-class networking and support services
Company Registration in a Free Zone
Setting up a business in a Free Zone is a streamlined process with minimal bureaucracy. The registration process typically involves:
- Free Zone Establishment (FZE)
- Free Zone Company (FZC)
- a Branch Office.
How to select a Free Zone for your Business License?
Free Zones are specially demarcated areas within the UAE to promote Free Trade. There are more than 45 Free Zones in UAE that are offering different business license packages for global investors. Each Free zone is regulated by an authority under separate rules and regulations. Investors often get confused to find the right authority for establishing their company and obtaining a business license.
Being one of the safest countries to live and work, there is a huge surge in the registration of companies and obtaining residence Visas in the UAE. Precisely due to this, the Free zone authorities are engaged in fierce competition to attract investors. To lure businessmen, several Free zones have started issuing licenses at nominal fees. Such cheap licenses may be suitable for small startups which are launched to test the market.
As everyone knows cheap trade licenses have its limitation. Ultimately it is the decision of the investor whether to establish their companies in the highly reputed Free Zones or not. Establishing a company is only the beginning of the entrepreneur’s journey. There are a lot of legal compliances to be taken care. Hence it is wise to seek the advice of a seasoned business consultant with good experience in the UAE.
Choosing the Right Free Zone: Based on your industry and business activities.
Applying for a License: Business licenses vary from commercial, industrial, and service licenses, depending on your operations.
Free Zones & Tax Benefits
Free Zone companies are onshore companies that fulfill all the eligibility to trade or liaise worldwide and also within the UAE, subject to customs laws applicable to the transit of goods. Under a Free Zone Company Registration, an investor is issued a 2-year Investor Residence Visa and is allowed to hire employees under the company depending on the visa quota (can be added as per requirement).
Each of the Free Trade Zones in the UAE is governed by its respective Free Zone Authority. Though these Licensing Authorities are generally within the ambit of UAE Law and regulations, they are independent and have separate regulations. They issue the Trade License, provide the right business infrastructure, approve employee visa applications, provide guidelines for fair functioning of business, and more.
Also, Free Trade Zones in UAE are beneficial for foreign investors in terms of Tax Savings. There is no Personal Income Tax in UAE and only a 9% Corporate Tax will be levied starting from June 2023 for companies meeting certain criteria. There are a few designated Free Zones in UAE where the 5% VAT (Value-Added-Tax) is exempted for certain transactions. Thus, overall UAE Free Zones are a perfect Tax Haven for foreign investors with minimal tax amounts when compared to their home country.
Free zones in UAE offer the investors and business owners a multi-level incentive to set up their businesses in the country. Free Zones in UAE provide various company licenses to the investors based on their desired business activity. Finding a suitable free zone for the business activity based on the budget and the time frame is a challenge for every investor.
Free Zones in Dubai offer various packages tailored to startups, SMEs, and large corporations.
These packages typically include:
Startup Packages: Cost-effective solutions with shared office spaces and flexible licensing options.
SME Packages: Competitive pricing with additional business support services.
Corporate Packages: Tailored solutions for large enterprises, including warehouse facilities and custom office spaces.
Freelancer Packages: Ideal for solo entrepreneurs and independent professionals looking for affordable business setup options.
Business Accelerator Programs in Free Zones
Dubai’s Free Zones not only offer business-friendly policies but also provide accelerator programs to help startups and SMEs scale quickly.
These programs include:
Networking & Mentorship: Access to business experts, mentors, and industry leaders.
Funding & Investment Opportunities: Connect with venture capitalists and investors to fuel growth.
Market Expansion Support: Assistance with entering regional and global markets.
Innovation Hubs & Incubators: Dedicated facilities for tech startups and innovative enterprises.
With a Free Zone license in Dubai, your business can benefit from a strategic location, global connectivity, and a thriving ecosystem that fosters growth.