Dubai is one of the most prosperous economies in the world. Being one of the leading centers of art, culture and commerce, it has become a lucrative destination for investors. However, there is a wrong notion among many entrepreneurs that setting up a business in Dubai is very troublesome.
Most of them consider that there are limited types of company incorporation. Only a handful of them are aware of the other setup possibilities like Representation/ Branch office, Offshore Company, Free Zone Company etc., and most of them solely consider the business set up rules of LLC Company.
Free Zones in Dubai
In order to ensure entrepreneurs can earn huge profits, there are several Free Zones in Dubai. These zones are special economic zones where foreign investors can carry out their business at ease. One can own a business in some of the following forms mentioned above. Dubai has the maximum number of Free Zones among all the other emirates of UAE and thus is one of the fastest growing economies in the world.
Free zone company setup in Dubai is encouraged because there are several benefits which are as follows:
There are a few basic requirements for business setup in Dubai free zone like:
Even though there are several advantages of business setup in Dubai free zone, there are a few limitations as well, for example, a Free Zone company is not allowed to trade directly with the UAE market.
It is often suggested that an aspiring entrepreneur should probably seek the services of a business setup consultant in Dubai. This is because; the consultants with the team of experts will give you customized insights based on your type of business. This makes the business incorporation easier and faster. The consultants also offer other business management services like account outsourcing, payroll outsourcing etc., which can be used at later stages of your business.
Most of them consider that there are limited types of company incorporation. Only a handful of them are aware of the other setup possibilities like Representation/ Branch office, Offshore Company, Free Zone Company etc., and most of them solely consider the business set up rules of LLC Company.
Free Zones in Dubai
In order to ensure entrepreneurs can earn huge profits, there are several Free Zones in Dubai. These zones are special economic zones where foreign investors can carry out their business at ease. One can own a business in some of the following forms mentioned above. Dubai has the maximum number of Free Zones among all the other emirates of UAE and thus is one of the fastest growing economies in the world.
Benefits of Free zone company setup in Dubai
- A Free Zone company formation allows 100% foreign ownership.
- An organization can enjoy 100% conversion of capitals and profits.
- It is free from personal and corporate taxes and need not pay any custom duties and import and export taxes.
- There are minuscule restrictions on recruiting labor.
- A free zone company can share services and collaborations with other companies in the free zone.
- The incorporation process of a company in the free zone is faster and easier than incorporation outside it.
How to setup a Free Zone Company in Dubai
- One needs to acquire a trade license to conduct business in Dubai. This license should be renewed annually. Therefore, to acquire the trading license at the earliest ensure the nature of your business as not every Free Zone allows every kind of business.
- It is important to have an office with the company’s name in the Free Zone. One can rent a place to set up his office.
- A company should have a manager who would be the authorized acting representative of the company.
- It must have a shareholder.
Even though there are several advantages of business setup in Dubai free zone, there are a few limitations as well, for example, a Free Zone company is not allowed to trade directly with the UAE market.
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