Different aspects of opening business in Dubai Free Zones
Dubai is an economic hub where numerous capitalists invest their money. It provides a huge chance to prosper businesses without facing unwanted difficulties. You can establish your company in two different regions there. One of them is Dubai mainland and the others are Free Zones.
Like their name, these open zones are like a free golden chance for outsiders to reap a huge profit. You can get the advantage of individual ownership with no profit sharing. The sense of possessing well-established business all alone escapes people from various useless constraints.
There are more than thirty free zones functioning in Dubai. They are mostly located at major seaports, airports, and frontiers. In these areas, there are no typical restrictions for taxes, customs duty, and other regulations. It gives people somehow a freedom of performing their work according to their will.
How is the procedure for establishing a business in the Free Zone?
The process of business setup in Dubai free zone is also simple. It takes almost 20 to 30 days to perform the whole procedure. First of all, you would need to select one of the free zones for your company. The second step involves reserving a company name and office premises.
You would also need to open up a corporate bank account. Once these basic formalities are completed successfully, you can set up your business related stuff. You should also take adequate authority license for your business. The authority of your free zone region will provide it. This is almost everything that you should majorly do in order to launch a business.
The establishment of your company in the free zone area, however, brings with it certain positive as well as negative aspects. In the below sections, we are going to discuss them separately.
Benefits of business setup in Free Zones
Few of these benefits involve:
- Zero tax on personal as well as on corporate income
- Complete possession of your business with no partner’s intervention
- Freedom from customs duties and other regulations
- Relaxation from a money deposit
- 15 years Freedom from corporate tax
- A chance to establish business speedily
- Liberation from hefty paperwork
These are a few benefits that you can avail while launching your business in Dubai free zones. However, few rules and regulations may vary from one zone authority to another. You should get to know them before continuing your work there.
Detriments of business setup in Free Zones
Besides all the advantages and positive aspects of free zones businesses, there are few detriments too. It is important to make people aware of them before they invest their assets there. Few of these detriments are:
- You would first need to rent office premises inside your selected free zone. It is important to do before you carry on for further procedure.
- You won’t be able to perform business dealings or other business activities with those dealers who are located in Dubai mainland.
- You would not be able to continue business dealings beyond your selected free zone area.
- After seeing the major pros and cons of establishing a business in free zones, one can decide easily which option is better for them.