What Do You Mean by Free Zone in UAE?

The UAE is among the most attractive investment and business destinations around the world. While there are a lot of reasons to set up company in Dubai or in the UAE as a whole, a lot of people would agree that it is because of UAE’s free zones.

You might ask, what are free zones? Why do a lot of people choose free zones? Most importantly, how can you set up a business in a free zone?

Let us answer these questions.

What are free zones in the UAE?

Free trade zones or simply free zones are economic areas in the UAE where services are offered and goods are sold. What sets apart free zones from others is that they have special tax, imports, and customs regulations.

Originally, free zones were designed to boost international businesses located in the UAE. Later on, it has developed into something way bigger. It has become a haven for foreigners to do business setup in Dubai.

Today, there are 45 free zones in the country. These free zones can be found in Abu Dhabi, Dubai, Sharjah, Ras al-Khaimah, Fujairah, and Umm al-Quwain. Free zones are broadly grouped into airport free zones, seaport free zones, and mainland free zones.

Why set up a business in free zones?

There are a number of reasons why a lot of people choose free zones. These are some of the reasons:

1. Free zone businesses are easy to set up
2. 100% ownership for foreigners
3. 100% Tax exemptions for import and export
4. 100% capital and profit repatriation
5. Tax exemptions for corporations
6. No personal income taxes
7. Free zone authorities provide business support, visa application, and labor recruitment

How to set up a business in a free zone?

Setting up a company in Dubai or other areas of the UAE is quite straightforward. Here are the basic steps that are commonly taken to start doing business in a free zone:

1. Choose which free zone you are going to use
2. Choose your business type and activity
3. Choose your company name
4. Prepare needed documents and meet requirements
5. Apply for business licence
6. Open bank account
7. Visa processing
8. Start your business

Finding the right help

While setting up a business in a free zone area can be easy, it is always an advantage if you have a company formation specialist on your side.

For one, if you are doing this for the first time, you might be clueless about where to start. While you can ask free zone authorities, things can easily get complicated when it comes to preparing paperwork. You need a partner who can ensure that all needed documents are ready and your application won’t get delayed.

Thankfully, you can get the right help in Austria Business Center. We have some of the best UAE business setup specialists who have the expertise and experience to help you. We can even have your business ready for operation in just a few hours. That’s how efficient they are in their service. If you want to make sure your business is up and running in the most convenient way, give us a call today!