Important Facts on the UAE Free Zone
FreeZone, some may be acquainted with this term, and some may not, so first, let’s get a brief about Free Zone.
Free Zones are business zones with exceptions from different taxes such as VAT(Value Added Tax), Income Tax, Corporate Tax, and Customs. There is the availability of 100% ownership of the business. The ultimate objective of forming these Free Zone is to encourage economic growth and international investment within the city. Now you have a slight familiarity regarding this.
Mentioned below are 13 aspects of Free Zones in Dubai
1.Regulations and Policies
There are more than 50 Free Zones in UAE, each with specific regulations and policies. There are particular activities in particular undertakings.
For instance, Dubai Internet City offers IT, Software, and Internet links. The Dubai Design District focuses on activities in the fashion and design industries.
2. 100% Foreign Ownership
100% foreign ownership is offered by UAE Free Zone businesses. You can register your Free Zone firm without a UAE partner.
3. Taxes
Taxes on personal and corporate income are free of charge in UAE Free Zones. Experience 0% income tax on people and businesses!
4. Import and Export Limitations
It is possible to only import and re-export to other nations if you want to set up a trading enterprise in a free zone. Unless approved by a Limited Liability Company (Trading) or a logistics supplier, goods are not permitted to enter the UAE’s mainland.
5. Marketing Opportunities
To market the products in the domestic market , possible through a regional distributor. A Free Zone company is permitted to perform wholesale operations exclusively.
Despite that, there are certain exceptions, for instance, the Dubai Design District (D3) Free Zone, which houses retail stores, showrooms, beauty parlors, and eateries.
6. Feasibility
It is feasible to set up a Fresh Corporation, an Affiliate, or an Extension for a Free Zone. You can also collect more information from Business Setup in Dubai.
7. Naming Guidelines
If a branch company is registered in this Zone may only share the same name and same activity with the Parent Company. However, this is not the same case for a Subsidiary Company, with a corporate shareholder exempt from this rule because it is free to choose its separate business venture and name.
8. Benefits of Visas for Investors in Free Zones and Their Families
You are entitled to apply for a UAE Residence Visa valid for 2-3 years for an investor who owns a company in the Free Zone and are privileged to sponsor your family members and domestic helpers and facilitate them to secure UAE Residence Visas.
9. Visa Allocation Based on Facility Rentals
According to the kind of facilities you rent through your Free Zone firm, the number of Investor or Employment Visas under the company varies.
Limited Visas are provided by Flexi Desk/Smart Desk(this could change depending on the Free Zones). One visa can be issued for every ten square meters the physical office offers.
10. Smart Desk and Flexi Desk Options
An option is available to establish a business in Free Zone without being mandated to rent an office facility. Hence, you can utilise smart desk or flexi desk facilities as long as the licensed activities don’t expressly state that they need a specific type of property.
11. Office Space
Your office space should be in the specified jurisdiction of the Free Zone where your UAE- based Free Zone company is formed. Also, you can refer to the Branch office in Dubai for additional information.
12. Unrestricted Capital Transfer
The advantage of unrestricted capital transfer back to your home country is essential for investors and businesses.
13. GCC Duty-Free Agreement
If you have obtained an industrial licence issued by Free Zone and the product is made there, the duty-free agreement inside the GCC( (Gulf Cooperation Council) will not be valid when supplying your products to other GCC countries.
These details will be useful and could guide you in deciding while setting up a business in the UAE Free Zone. Please feel free to reach out to us for any queries and additional support.
