UAE free zones: Features and Benefits of Doing Business
One of the main features of the legal system of the United Arab Emirates is a strict requirement for participation of one or more national partners in the capital of a company, whose share should be at least 51%. Moreover, some types of commercial activities may be conducted exclusively by UAE citizens.
Nevertheless, the UAE today has great potential. It is developing rapidly and is a very attractive jurisdiction for investors from around the world. All this was achieved largely due to the functioning of free zones. Free zones in the UAE are areas that have a special tax regime, customs and import operations and are governed by their own rules.
UAE free zones have the following benefits:
- 100% foreign ownership of the company;
- 100% repatriation of capital and profits;
- exemption from corporate tax for up to 50 years;
- simplified registration process;
- ownership of real estate is allowed (storage facilities, availability of production and installation sites, etc.);
- fair license renewal fees;
- the possibility of obtaining a visa for founders and employees. UAE residence visa fees depend on the free zone chosen.
- business confidentiality;
- allowed to open a bank account in Dubai;
- lack of personal income taxes.
Dubai World Central – a perfect choice for opening a company in free zone
The Dubai World Central (Dubai South) project is a city inside the city. Its area covers an area of 145 square km. In 2020, Dubai South will become the venue for a world scale exhibition, Expo2020. It is expected that this exhibition will be visited by more than 25 million people.
DWC free zone is part of this large-scale project, and already today a large number of big companies are registered here. Among them are DHL, Aramex, Panalpina and others. The main advantages of this free zone include a logistics platform that includes the Jebel Ali Port, DWC Airport and the Etihad Railway. Undoubtedly, a special role is played by a special logistic corridor that connects DWC with the port of Jebel Ali. Work in this free zone is associated with manufacturing, assembly plants, distribution centers and warehouse facilities.
Dubai World Central offers rental premises and workplaces in its business park. Today, registration in it is the most economical way to open a company in the emirate of Dubai. In addition, registration of a company in the free zone is quite fast.
Features of opening a company in Dubai free zone
Dubai has become an excellent business environment for many investors around the world. When registering a company in Dubai, the investor receives one of the most liberal and attractive working conditions and loyal rules and regulations.
Basic requirements for Dubai free trade zone companies:
- The company should have a trade license for the planned type of activity. This license must be renewed every year.
- The company should have an office on the territory of the free zone, for example, a rented one. The lease must be renewed every year.
- It is necessary to authorize the manager so that he can act as the legal representative of the company.
- The company must have at least one shareholder and share capital.
The company is not allowed to trade directly with the UAE’s domestic market. A free zone company may conduct a trading business within the UAE only through designated local distributors. Customs duty of 5% is currently applicable when importing goods to the local market of the UAE.
All free zones provide attractive schemes for investors but they differ from each other. Therefore, it is worth exploring the infrastructure and other parameters offered by each free zone before opening a company.