Free zones are prevalent all over the world, promoting business and investment. Free zones have their separate authorities, providing a series of benefits to them. The primary motive of a free zone is to attract foreign investment and give a boost to the economy of the nation.

Free zones in UAE:

Similarly, the United Arab Emirates is home the most sought after free zones of the world. The UAE consists of 7 Emirates, and each one has a series of free zones to choose from. The free zones here provide a plethora of benefits to the businesses, that contributes to making them a hot destination for investors. Business set-up in UAE free zones in an easy process that is sure to bring in a lot of benefits.

Benefits of company formation in UAE free zones:

  • Complete ownership:

The primary reason that attracts hordes of investors towards free zones is the option of having complete ownership of the company. Generally, foreign businessmen can only own 49% of a company, and they need a local partner who will hold a 51% share. But for business set-up in UAE free zones, there is no such regulation to have a local partner. One can become the complete owner of the company.

  • Tax concessions:

Tax concessions is a striking feature that surely holds importance for every business. Company formation in Jebel Ali free zone allows the business to enjoy plenty of tax benefits. The investors enjoy a 50-year exemption from corporate tax, which can be renewed as well. Apart from that, on personal income, the tax rate is 0%, ensuring that the foreign investors benefit from their operation in the UAE. Even the repatriation of capital has a 100% tax exemption.

  • Exemption from duty:

If you think that’s all, you are mistaken. The free zones also provide exemption on import and export duty. All the companies that are operating inside the zones enjoy a 100% exemption on export duty for trade to non-GCC countries. However, in the case of local GCC markets, 5% of customs duty is levied. This makes company formation in Dubai free zone a favourable option.

  • Low capital requirements:

Lastly, the capital requirements for company formation in UAE free zones is comparatively less. Owing to it, a company can be incorporated with lesser capital. The capital requirements are different for each free zone. At times, the authorities can even change the rules regarding capital share. Although, it still is lesser than other areas.

To conclude

The United Arab Emirates has 40 free zones that a businessman can choose from. Each offers a unique set of benefits that help the business to flourish. The tax benefits and concessions surely prove advantageous to a flourishing business. Therefore, it is right to say that the free zone of the UAE is a source of tax breaks for every business. If you wish to reap in the tax benefits, it is the right time to move into free zones.