Sunday, 21 Apr 2024

A Guide To Setting Up Business In A Free Zone In Dubai

If you have been wondering where you should start your new business for the last couple of months, Dubai has surely shown up in the results. Dubai has quickly made its way into becoming an entrepreneurial hub with some mind-blowing new opportunities. This is, without a doubt, because of the several amenities the government has to offer for new start-ups.

That said, Dubai is a big place, with each area divided into specific zones. This might make it quite hard for an outsider to understand what has the best prospects for them. This is where this article can be quite helpful. Here you will find everything there is to learn about where you should start a business in Dubai and why.

What Are The Two Main Zones Dubai Is Divided In?

When you are planning to invest in Dubai, you will get asked to choose between two zones, the Mainland and Free Zones. While Mainland companies can trade both locally and outside UAE, Free Zones are mainly made for foreign trades. However, don’t let this confuse you.

It is a much better decision to start a business in Dubai in one of the free zones. This is because the free zones were made in order to attract foreign trade and much more welcoming of start-ups when compared to the mainland.

The mainland is filled with big-name brands with enormous amounts of resources that help them survive the crucifying laws of the government. On the other hand, free zone laws are much more lenient, making it a better option for start-ups.

What Are Some Advantages You Can Enjoy In Free Zones?

Apart from the laws being more lenient for start-ups, free zones have several other ways a new business can benefit. Learn more about the same here.

  1. 100% Ownership:

Unlike Mainland companies, where you have to have 51% of your company’s ownership with local, free zones allow you to have complete ownership of your company.

  1. Complete Profit Repatriation:

Another thing that makes Free Zones better suited for start-ups is the allowance of full profit repatriation. This will also allow you to transfer 100% of the capital to your native land without any hindrance.

  1. No Corporate Tax:

When you start a business in the Free Zone, you do not have to pay any kind of corporate tax on your profits. The government allows you to function your start-up as you want, without any involvement from their side.

  1. No Custom Duties:

Import and export are the absolute bare necessities of running a business in a foreign land. However, in a Free Zone, you are exempt from all kinds of custom duties, which only increase your overall profits.

That said, setting up your business here without any knowledge of the place can be quite a hassle. This is why it is best to take the help of a professional and experienced company like Emirabiz. They have been helping entrepreneurs like you start and flourish their businesses with assistance and guidance for years.