FREE ZONES & TAX BENEFITS
Free Zone companies are onshore companies that fulfill all the eligibility to trade or liaise worldwide and also within the UAE, subject to customs laws applicable to the transit of goods. Under a Free Zone Company Registration, an investor is issued a 2-year Investor Residence Visa and is allowed to hire employees under the company depending on the visa quota (can be added as per requirement).
Each of the Free Trade Zones in the UAE is governed by its respective Free Zone Authority. Though these Licensing Authorities are generally within the ambit of UAE Law and regulations, they are independent and have separate regulations. They issue the Trade License, provide the right business infrastructure, approve employee visa applications, provide guidelines for fair functioning of business, and more.
Also, Free Trade Zones in UAE are beneficial for foreign investors in terms of Tax Savings. There is no Personal Income Tax in UAE and only a 9% Corporate Tax will be levied starting from June 2023 for companies meeting certain criteria. There are a few designated Free Zones in UAE where the 5% VAT (Value-Added-Tax) is exempted for certain transactions. Thus, overall UAE Free Zones are a perfect Tax Haven for foreign investors with minimal tax amounts when compared to their home country.
Free zones in UAE offer the investors and business owners a multi-level incentive to set up their businesses in the country. Free Zones in UAE provide various company licenses to the investors based on their desired business activity. Finding a suitable free zone for the business activity based on the budget and the time frame is a challenge for every investor. That’s is where AL BAB GROUP will assist in choosing the right Free Zone for your business.
LOW-COST BUSINESS LICENSE PACKAGES – FREE ZONES IN UAE
Free Zones in UAE offer investors a host of Low-Cost Business License Packages to easily set up a company in UAE. There are several Free Zones in the UAE offering a Low-Cost Business License Package. The business setup cost of AED 8,050 for a service license from Sharjah Media City is an attractive offer for entrepreneurs and start-ups to set up an office in UAE in the most cost-effective way.
For Consultants, Marketing Professionals, Legal Professionals, Software Professionals, etc., Free Zone License Cost is AED 11,743 (Visa Cost & Other fees not included). Also, for a 3-Year Business License for service professionals, the Free Zone license cost is AED 32,712. There are many such competitive offers from the 45 plus Free Zones of UAE. Business Setup Cost of Free Zone depends on various factors such as the business license type, nature of the business activity, pre-approvals, office space, specific location, budget, and more.
FREE ZONE COMPANY LICENSE IN DUBAI
Free Zone Company License in Dubai is a popular business license category among foreign investors. The cost-effective Company License offered by the Free Trade Zones in Dubai powers the new company formation in Dubai. The Free Zones in Dubai provides the investors with a wide variety of business activities and robust business infrastructure for the company to easily achieve business growth.
The company formation process and obtaining a Free Zone Company License in Dubai is straightforward. It follows an easy company formation process to register a maximum number of companies and helps investors to easily realize their goals of settling, working, and living in UAE. Dubai Free Zone Company License cost starts from AED 11,900 for a Zero Visa Quota. Also, investors can opt for an upgrade in case of more visas, office, and other business requirements.
KEY HIGHLIGHTS – FREE ZONE COMPANY FORMATION IN UAE
The Free Zone Company in the UAE remains the most sought after company structure among foreign investors due to several investor benefits such as:
- 100% Foreign Ownership
- Tax-free Income – No Corporate or Income Tax
- 100% profit repatriation and capital transfer
- Easy and quick Business Setup with minimum documentation requirements
- 3-Year Residence Visa and Multi-Year License
- Few Free Zones in UAE are VAT exempted Free Zones – No VAT Applicable for business transactions within the Free Zone
- Access to world-class infrastructure facilities (Fully- Furnished Office Spaces, 24/7 access, security, and more)
- Most of the Free Zones in UAE are gated and have an in-house Customs Checkpoint allowing easy transit of goods
- No Customs Duty on imports to the Free Zones. Perfect choice for Trading Companies operating locally as well as in international markets
- World-Class Warehousing facilities for storage, packaging & light manufacturing
- Proximity to one of the busiest Airports and Seaports of the world
- Global Connectivity – Direct Connection via Airport, Seaports to more than 180 Countries of the world
- Easily scale-up business by leveraging the enormous business opportunities through networking, meeting, events at the Free Zones
The Free Zone company can be registered with or without an office. The company must be registered with the Chamber of Commerce and it should obtain Import Export code to facilitate imports and exports. After one year of incorporation of the company, a Tax Residency Certificate can be obtained from UAE. Investors can take advantage of the Double Taxation Avoidance Agreement (DTAA) and save taxes in their home country.
Also, Free zone company bank account can be opened in any of the banks in UAE with an active online banking facility, debit card, credit card, checkbook, and other trade facilities.
In short, UAE free zone company formation is the most feasible method to promote business in the Middle East and North African region.
