Dubai is a growing city with a financial value for every start-up. The ownership idea is challenging in the united arab emirates due to policies for foreigners. Dubai’s free zones are economic areas with unique regulations that offer tax relief, complete foreign ownership, and global market value, make attractive to foreign investors. It has registration through Economy Ministry with Economic Development Department(DED). It also requires a UAE resident sponsor, which gives trading flexibility in the UAE. Things I learned from the statistics are going well, and several foreign businesses want to open their other business branch in Dubai. In this read, I share about Benefits of Free Zone Company in Dubai.
Free Zones include business areas near ports or significant business hubs in Dubai and the UAE. Each Free Zone has unique rules irrespective of the rules for companies. Dubai has the highest number of Free Zones in the UAE, offering 45 zones, including several sectors. My view about Dubai’s autocracy changed after knowing the free zone sector rules.
As we have observed from the last 6 decades, the UAE has a mission to shift its economy from oil to words tourism or finance. It plays a big role in the growth of the Dubai economy.
The plus point that Freezone bring is the acknowledgment of investment in the sector. We can see the statistics and note that economic growth happens in every free zone. The number of companies and investment amount increment bring more financial significance to Dubai.
Free Zones have helped power robust non-oil external trade growth, boosting Dubai’s economic diversification. Many foreign investors are attracted to Free Zones, bringing Dubai job opportunities, knowledge, and excellence.
There are several examples within the free zones that are valuable. Ras Al Khaimah Economic Zone (RAKEZ) has introduced Foreign Direct Investment (FDI) company set-up. It allows 100% foreign ownership of mainland companies in Ras Al Khaimah. Before that, foreign investors in the UAE required local partners, which limited the owner to 49% with shared profits. The new policy brings foreign investors what they want and covers fully controlled led businesses without needing a local partner or sponsor. Eligible activities for 100% foreign ownership have been defined, but certain sectors like banking remain restricted.
The UAE government’s goal includes improving as a business hub and address include economic challenges. 100% foreign ownership benefits include:
- Reduced paperwork.
- Full control over operations and profits.
- Eligibility for UAE residency permits.
The UAE Golden Visa program is the best choice for foreign businesses to open offices in free zones, including 100% foreign ownership advantages.
With nearly 9.5 million people, the UAE brings high wages experts, great career opportunities, and a favorable social package. Hiring foreign employees in free zones follows specific rules, offering benefits like residence visas and tax-free income. The Free Zone employers must handle organizational issues, provide health insurance, and sign employment contracts specifying salary, work schedule, leave, and duration.
The one thing about the free zone system that excites me is Employee benefits such as vacations, days off, paid weekends on public holidays, sick leave, maternity leave, and health insurance. The standard working day is 8 hours, which is not compulsory to work more, and the working week lasts 35 to 45 hours. English proficiency has become necessary, especially for service-oriented positions, as we know that Arabic is optional for most jobs. Employers highly value start-up, activity, strong work ethic, quick learning, and good customer service skills in their employees.
Dubai free zones issue free zone visas and include licensing packages for entrepreneurs, business owners, employees, dependents, and domestic staff. Visa fees depend on the related type, while additional visas for employees and dependents include extra costs.
I also appreciate the simple process of immigration with instant approval.
The Dubai free zone visa process includes five steps: e
- E-channel registration,
- Entry permit application,
- Medical and Emirates ID registration,
- Residenceisa stamping.
Fee zone visas are limited to their validity period, but they can be renewed regularly. Business Incorporation Zone (BIZ) offers comprehensive support for launching and operating small businesses in the UAE, including assistance with trade licenses, company administration, banking services, free zone visas, relocation, and gatekeeper services. Read about Gwyneth Chua: A Star in the Philippines now.
Import and Export Benefits
International business owners want to expand their work into Dubai due to its representation as an international metropolis. Dubai’s free zones encourage businesses, including 100% foreign ownership and no corporate taxes or customs duties on imported/exported goods. Benefits of Free Zone Company in Dubai can vary with respect to sector.
Free zones are considered part of the UAE’s physical boundaries but are beyond the authority of customs authorities. Export processes from UAE-free zones are clear and require documentation, including an export certificate, export authorization for restricted items and sales invoice. General requirements for trade firms operating in free zones include getting an importer regulation. We can read in the policies of each free zone about ensuring imported products align with the free zone license and timely delivery to the free zone.