Free zones in Dubai are special economic zones that were set up to encourage foreign trade and investment. There are over 20 free zones in Dubai and each free zone is governed by a special framework of rules and regulations. The Jebel Ali Free Zone was the first free zone in Dubai that was opened in 1985. Currently, there are over 150,000 companies located in Dubai. These companies enjoy several unique advantages.
Benefits of Setting up a Free Zone Company
The main objective of setting up free trade zones is to attract foreign investors. Setting up a free zone company is one of the easiest ways to start a business in Dubai as the laws and the custom regulations in a free zone are much more relaxed. Here are some of the major benefits enjoyed by free zone companies in Dubai-
They enjoy 100% ownership and there is no need to find a local sponsor. It is important to note that every company located outside of the free zone must have a local sponsor.
They are exempted from paying any kind of tax
They enjoy 100% repatriation of capital and profits.
There are no restrictions on currency movement.
They get access to state-of-the-art infrastructure and communication systems.
Business support services are easily available.
The workforce is inexpensive and the recruitment process is simple and hassle-free.
Setting up a Company in a Free Zone
The first step that a business needs to take is to determine the kind of company it wants to set up. Depending on the nature of a business, you may want to set up a new company or open a branch office of the company. It is essential to get the business plan approved by the concerned authorities. Every business needs to submit the required documents.
Challenges of Setting up a Free Zone Company
Although the process of the free zone company set up in Dubai is simple and hassle-free, there are several obstacles that a business must overcome-
A business needs to identify a suitable area in the free zone. However, most foreign businesses lack local knowledge and find it difficult to select the right area.
The process of getting name approval and other ministerial approval can be difficult and complicated.
A business may feel difficulty in opening bank accounts.
Many businesses need assistance on feasibility and project reports on new incorporations.
To overcome these challenges, a business may need the guidance and assistance provided by a reliable business setup consultancy. There are many reliable consultancies that specialize in the business setup in Dubai free zone. Equipped with the local knowledge and understanding, these consultancies provide the best guidance to all types of businesses.
While choosing a business setup consultants in Dubai, it is important to ensure that the consultancy is equipped with the best resources and has a team of experienced consultants who can handle all aspects of business set up in a Dubai free zone and offer guidance throughout the process.