The idea of establishing a free zone originated in 1985 with the motive of attracting investors to set up their business here, while contributing to the economic growth of Dubai, UAE. After the establishment of the first free zone – the Jebel Ali Free Zone, this idea became significantly popular and resulted in the establishment of more free zones. To date, there are 28 free zones in Dubai including the Dubai Airport Free Zone (DAFZA), International Free Zone Authority (IFZA), and so on.
These free zones have become an ideal place for starting a new company due to the availability of attractive incentives like tax exemptions, 100% foreign ownership, and quick licensing procedures. Each Free Zone has its free zone authority, which is responsible for overseeing operations, implementing regulations, and providing support services to businesses within the zone. These authorities work closely with government entities to ensure compliance with local laws while facilitating the smooth functioning of businesses.
In the last 12 months, 3049 new businesses joined this place, making a total count of 23000 companies operating within Dubai Free Zones. This place now gets about 11% of all the investment money that comes into Dubai. But, what incentives have made it a point of attraction for businesses around the world?
- 100% Foreign Ownership
- 100% Repatriation of Capital
- Independent Laws and Regulations
- 0% corporate and personal tax
- Easy Access to Regional and Global Markets
- 100% Exemptions From All Import and Export Duties
- Fast Licencing Procedures
- Support From Developed Business Communities
How To Start A Company In the Dubai Free Zone?
Choose a Free Zone: Thoroughly understand your business operations and check, which free zone can be most suitable for it. By evaluating numerous free zones and their incentives, you can make an informed decision that aligns with your company’s needs.
Decide The Business Structure: Determine the type of company you want to establish (e.g., Free Zone Limited Liability Company (FZ-LLC), Free Zone Company (FZC), Branch of a Foreign Company, etc.).
Business Activity: Whether it’s a manufacturing, commercial, e-commerce, or services-based company, keep a clear vision of your business activity as different Free Zones have varying restrictions and permissions regarding it.
Reserve a Company Name: Choose a unique name for your company and check its availability with the respective Free Zone authority.
Contact AIMS UAE for the Best Business Set Up Solution
The process of company formation in Dubai is complex, but with AIMS UAE, this becomes easy. The services we offer typically include assistance with paperwork, legal documentation, licensing, visa processing, guidance on regulatory procedures ongoing support, etc. This opportunity allows businesses to focus on their core activities while ensuring a smooth business setup process in the UAE.
Frequently Asked Question
While Dubai Free Zones offer numerous advantages, there may be restrictions on conducting business outside the Free Zone (onshore) without a local partner or additional licenses.
Many Free Zones offer flexi-desk or virtual office packages, allowing businesses to fulfill the requirement of having a physical address without the need for a dedicated office space. This can be a cost-effective solution for remote operations.
It depends on the regulations of the specific Free Zone. Some Free Zones allow businesses to operate multiple activities under one license, while others may require separate licenses for each business activity.
