As one of the most global business hubs in the world, the U.A.E has free zones in its seven states. Abu Dhabi tops the list with the most number of free zones. Foreign investors are instantly drawn to this region as they benefit from tax breaks and incentives that are not always available when setting up a company in a foreign country.
While investors can attain 100% ownership of their company, here are some interesting facts to consider when setting up your business in Dubai.
First and foremost, investors should be aware that there are two types of Free Zones where you can setup your business. The Free Zone Company is a single shareholder which can be in the form of a person or a company. The Free Zone Establishment is a two or more shareholder persons or companies.
There are plenty of opportunities given to investors setting up your business in the Free Zones. While most of it is associated with low costs it is good for businesses to keep some extra cash in hand which can include administration fees.
When setting up a business in Dubai, you get opportunities according to the type of business you set-up in the Free Zone. There can be geographical limitations so companies should gain the maximum benefit by choosing the best options.
Most goods that are imported and exported to the Free Zones are tax free but there are some goods that the U.A.E will not allow into the Free Zones. For example, narcotics and weapons are prohibited and can be harmful to the company.
It is also good to keep in mind that some of the Free Zones have designated businesses, like the Dubai Media City and Dubai Healthcare, but at the same time there are Free Zones that offer multiple business opportunities like the Dubai Airport Free Zone, for example.
It is important for investors to know that there are laws in all of the seven states that you must abide by. In such situations, it is best for a business consultant in Dubai to guide you with the company registration. You need comprehensive legal and business advice from top business consultants so that you will not face any hindrance or run into legal problems when setting up and running your company.