The basic purpose of free zone companies is to attract as many investors as possible, and in the world of globalization Dubai has seem to capture numerous of investors through these free zone businesses and now different countries are considering the option of freezone.
Benefits of Free Zone Companies
If you are deciding on Dubai freezone company setup then you should recognize some appealing benefits to it.
- 100% ownership of the business. Though you may require a local sponsor as part of a regulation in setting up Free Zone Company but it is possible for you to completely own your business after the set up.
- Reparation of capital and profits. An owner has the right to take back his capital and profits to his country.
- Exemption from corporate, import and export duties and tax. So that more investors are motivated to invest in a form of a free zone company.
- Personal tax exemption for at least 15 years.
- State of art infrastructure. In a free zone company it is ensured to provide you with competitive infrastructure and strong business platforms in order for your business to excel and thrive.
Disadvantages of Free Zone Companies
Though setting up a free zone company may not be a bad idea but it does have its drawbacks to it.
- You can only rent or purchase offices in chosen free zone limited area.
- Being far from the mainland city may bring problems for suppliers, customers or clients to reach you.
- High translation and linking cost, for which you may hire an agent which will add rather than decrease in your cost.
Steps To Set Up A Free Zone Company.
Setting up a free zone company has its numerous advantages but they are stages and measures you will have to take to make it happen.
- Choose the type of Company. If you want to start as a fresh free zone company then you will need minimum one shareholder with a certain fixed capital, but if you want to set up a chain of an existing foreign company then you may require no capital.
- Acquire a license. There are two types of licenses, Trade license for import and export and Service licence for services and professionals.
- Lease an office according to you and our business suitability and success rate.
- Hire a professional agent to help you out.
Dubai business setup is a good option for those who are looking for flexible operations. The government wishes to attract more investors for which they are providing some exceptional services and infrastructure to allow new businesses to start and thrive. With great benefits and tax exemptions laws, it’s inevitable that investors from all around the world will be keen to start their businesses.