A free zone is an economic trade jurisdiction governed by specific rules and regulations that do not apply to businesses outside the zone. Companies operating in the free zones are able to trade products and services and benefit from foreign ownership laws and special taxes.
The government of UAE established free zones in order to attract foreign investors to the Emirates, allowing them to open businesses in a growing ecosystem and benefit from lucrative opportunities.
The UAE created the first free zone, Jebel Ali Free Zone, in 1985. Today, however, there are over 40 free zones in different parts of the UAE.
With each free zone, investors can dabble in multiple business activities. For instance, education, technology, infrastructure, construction, and media, are some of the industries in which a company can operate in a free zone.
However, free zone companies are not allowed to trade outside of their jurisdiction and can only run their business through local distributors.
As an investor, it is important that you understand the concerns and benefits that come with opening a company in the free zone so that you can make an informed decision. Setting up a freezone company means you do not have to comply with the stringent custom requirements and other restrictive measures.
Benefits of Operating in a Free Zone in the UAE
There are several reasons why free zones are so alluring to foreign investors. Let us take a look at some of them.
- Tax-free import and export of goods in and out of the Free Zone
- Investors can enjoy 100% ownership of the business in the free zone.
- Investors can enjoy 100% repatriation of profits and capital
- Setting up a free zone company is easy and cost-effective. You can set up a free zone company in days.
- Free zones offer you access to world-class facilities like workspaces and warehouses.
- Free zones offer you easy and unrestricted access to global and regional markets.
- Investors can run free zone companies virtually so they do not need any physical office space.
How to Set Up a Free Zone in the UAE?
The good news is that setting up a business in a free zone in the UAE is a simple process. Here is what you need to do.
Choose your Business Activity: You can choose hundreds of business activities to operate in a UAE free zone. Most companies choose multiple activities under a single license. Your free zone and license cost will depend on the activities you choose.
Decide a Company Name: Deciding on a company name is easy enough, but you should ensure you follow the necessary requirements. It is important to make sure the company name does not contain offensive words, religious references or references to organizations like the mafia or FBI.
Submit your Documents: You will need to submit an application form and supporting documents to apply for opening a business in a free zone. Documents include your contact information, shareholder passport information, and sometimes a business plan.
License Issuance: Once your documents have been submitted and approved, you will be issued a license to undertake business activities in the UAE.
Open a Bank Account: You can then open a bank account to start operations. The free zone in which you operate can help you find the right bank that meets your requirements and offer you a complete suite of financial information.
Visa Processing: The last step is your visa and immigration process. A business set-up consultancy service in the UAE can help you with this process. They can liaise with various government departments and regulatory authorities to ensure your visa is approved quickly.
Set Up a Business in a UAE Free Zone
Starting a business in a UAE free zone can open various lucrative opportunities for you and help you build your very own empire in the UAE.
At Capatt Services, we offer a range of professional business set-up services in Dubai and other emirates of the UAE that can support you in your business activities.
For more information on how to form a business in the UAE free zone, reach out to Capatt Services at https://www.capattservices.com/.
