Benefits of Tax Free Zones for BusinessesHaseeb
The purpose of a free-zone is to attract foreign investment because investors around the world will be willing to invest in new regions if they found any benefits in new regions as compare to their home country. That’s why different countries have free-zones to attract foreign investment and these investments around the world help these regions to develop a strong economy.
There are many countries that have free-zones for businesses to invest in but most popular and preferred free-zones are in UAE. United Arab Emirates has 7 emirates and each emirate has number of free-zones for investor to select and start their business such as:
- Dubai Airport Free Zone
- Sharjah Airport Free Zone Authority
- Fujairah Free Zone Authority
- RAS Alkhaimah (RAK) Free Trade Zone
- Dubai Media City Free Zone
- Ajman Free Zone
- DMCC Free Zone
- Dubai South Free Zone
- Hamriyah Free Zone
- Jabel Ali Free Zone
We have complete details about each free zone of emirate which you can read at “Incorporation of a Free Zone Company in UAE”
As every free zone has its certain benefits and paybacks but there are some common benefits which each UAE free zone offers to businesses:
100% foreign ownership
These free zones of UAE provide 100% foreign ownership to businesses and there will be no involvement of others in your company.
100% repatriation of capital and profits
UAE free zones allow foreign investors to transfer corporate money back to their home country from UAE. Such kind of facility is a huge benefit for any investor.
No Local Sponsor Required
Businesses, who want to start their operation in mainland of UAE, need a local sponsor who owns the 51% shares of the company. It is an obligatory requirement of the government imposed on foreign companies if they want to setup a mainland business. But in free zones you do not require any local sponsor, who will take a part of your ownership in your company. You will enjoy the rights of 100% ownership in free zones.
100% exemption of import and export duties
Businesses who are operating in free zones of UAE are 100% exempted from duty on exports but to countries that are not the part of Gulf Cooperation Council (GCC). However, if a business is exporting to GCC country he has to pay some customs duty.
Free zone company formation required less time
As compare to other zones, it will require less time to start a business in free zone. For most of the businesses, it is only required 3 days to start their operations but it can vary depending on the structure and type of the company. Read in details about the time required starting a business in UAE.
Inexpensive workforce and easy recruitment procedures
As compare to other countries that have free zones and even the other zones of UAE as well, you can find inexpensive workforce in these regions. The requirement process and labor laws are very much favorable for both the recruiter and the workforce.
25 years lease options
In free zones of UAE businesses have the lease option of 25 years which is a very attractive feature as investors do not need to invest a huge amount of money in one go.
In free zones of UAE you will find a world-class and ever-improving infrastructure, supporting business to have a balanced work requirement. The transportation system of these zones is very modern to fulfill your commuting necessities. Free zones of Emirates provide a very business friendly environment with growth opportunities. You can find customized and predesigned warehousing and office facilities equipped with modern technology.
Investors can have the visa for 3 years for them, for their staff and for their families which can be renewed without any hassle.
Bank account facility
When investors want to transfer their funds into a new region they need to open a bank account so they can secure their investment and can put their focus towards on other matters rather than the safety of their own money. Opening a bank account in a new region is not a simple thing to do because procedures and requirements vary bank to bank. But free zone of emirates provides you an ease to open a bank account, so that you can perform your daily monetary activity with comfort and peace of mind. You can read our well written article regarding Basic Requirements to Open an Offshore Bank Account in UAE
If you have all these benefit which are described above, so it will be easy for you take a decision about your investments.
We at KWSME can describe you benefits of each free zone and can recommend a best zone suitable for your business setup requirements. Contact one of our experts and get free consultation.