A lot of businesses want to operate in the UAE, but the reasoning of why the free zones is so popular for foreign investors is because of the ease of getting them set up. If you were to move outside of these free zones, there is a lot more required in order to conduct business. The most common one being that you need to have a partner who is a UAE national and owns at least 51% of the shares and that is why people are setting up in these free zones to get around this.
Other than that, there are many other advantages on why you should be starting up your business in the free zones. There are lucrative incentives and a wide range of opportunities that are presented to investors when they want to set up a business in UAE free zones. The following are some of them:
1. A wide range of business licenses
Companies can conduct business in many different industries from manufacturing to consulting. The only one that is not able to conduct business is insurance companies.
2. Confidentiality
A free zone company is protected by the highest level of privacy adopted in the UAE about the identity of its owners, directors, and activities within acceptable international standards.
3. Bank account and registered office
So is where you need to have a registered office in the location where you have set up your business, in the UAE free zone but you can open up a bank account anywhere in the world. It can take about a week to get all of those documents completed and accepted and then about 2-3 weeks to be approved as a UAE residence.
There are about 44 free zones that are situated all over the United Arab Emirates and it has already attracted over 200,000 companies. UAE free trade zones offer lucrative facilities to non-resident corporates, like the convenience of single-window administration, no bureaucratic red tape, and 100% ownership. These free trade zones can range in what they require for you set up a business, but the fundamentals stay the same.
Some of the benefits for setting up in UAE free zones.
If you are looking for any reason to get your business over into the UAE, then here is a short list of some of the reasons that it would be beneficial
· 100% foreign ownership
· 100% repatriation of capital and profits
· 100% exemption from corporate, personal, and income taxes
· 100% free transfer of funds, and no foreign exchange controls
· Efficient communication procedures and single-window administration
· Flexibility to operate 24/7
· Freehold offices available for sale or lease
· Ready-made offices, factories, and warehouses
· Easy start-up and licensing procedures
· 3-year UAE residence visa
One of the main reasons a lot of entrepreneurs are definitely taking advantage of being able to conduct business in the UAE is because they are able to live and work in such a beautiful country but still send their money to wherever they may originate from. We are not also just talking about a section of your money; we are talking about 100% of it can be moved back into your home country. This is a massive positive to a lot of businesses as they get to keep more of their hard-earned money in their own pockets.
You can also get visas for your loved ones a lot easier. It is hard to move away from family to go and work but the way that the UAE free zones work, it makes it a lot easier to freely move your family in and out of the country with handy visas. Meaning you get to continue doing as much business as you can and reaping the benefits of the UAE free zones but also be surrounded by your family when you’d like without having to think of hefty fees or stressful border control.
So, what are some things that we suggest you think about before taking up this opportunity?
1. What is your budget? Can you get started small and work up?
2. How quickly do you need this all to happen?
3. What is your industry? And can you function doing your industry work in the UAE?
4. Visas? Do you need one?
5. Workspace and permits? Remember it needs to be in the UAE free zone.
6. What’s your nationality? How can this benefit your application?
7. How will you outsource your work?
8. Do you have anywhere you want to be sending your profits to? Getting those accounts sorted.
There are so many possibilities that come with starting up your business in a UAE-free zone and this only touches the surface of what can be done. It is advised that you do your own research before taking the leap to start a new business in the UAE.
