Strong economy and stable political conditions are the key factors, people consider while searching the address to establish their setup. After considering the rising interest of people to become an entrepreneur, State Government and authorities across the world implemented flexible policies to facilitate native and foreign entrepreneurs to start up their enterprise. Free zone (FZ) or free trade zone (FTZ) is one of the noticeable examples of bold steps taken by governments.
What are Free Zones?
Freezones are the geographical sites that allow entrepreneurs to carry out trading activities without taxes and import duties. Generally, such facilities are constructed near shipping ports and airports not only to make them attractive business spots, but also to reduce the shipment costs. Imported goods can be stored here without any taxes and can be utilized in their relevant manufacturing plants. Although, there are no taxes on the commercial activities, importers have to pay fees for using storage and manufacturing facilities in the area.
When it comes to establishing a company in the Middle East, United Arab Emirates UAE is the most preferred destination to inaugurate any kind of company. The primary reason behind this popularity among investors and entrepreneurs is the purposeful establishment of the commercial district, business centers and UAE free zone across the seven States of UAE.
How free trade zones help foreign investors in UAE?
As I have already discussed that investors who are establishing their setup in FZs are exempted from taxes and custom duties, they are facilitated throughout the process. It not only facilitates tycoons with huge capitals, but also empowers small startups and individuals seeking to initiate their setup in any of the UAE territories. In addition to tax free trading opportunities, corporate owners also enjoy special benefits related to ownership and labor hiring. Moreover, a state of the art infrastructure, communication and transportation facilities give investors a complete peace of mind.
What are the business benefits?
As its name suggests these sites are made to free up investors from an excess of expenses, they have to make while establishing a company in a commercial tower in the business center or a manufacturing plant in commercial land plot located in the industrial area of the city. Freedom to operate and low cost are the major pluses associated with FZ. Here I am sharing few benefits of creating a company in the Dubai Free Zone.
Sole ownership, if you want to enjoy 100% company ownership in Dubai, it is only possible in a FZ. Otherwise, you have to share 51% partnership with local Emirati investors.
100% returns, traditional business is all about earning profits and paying taxes on what you have earned. If you want to relish 100% profits, there is no better place than FTZ.
Tax free fund transfers, whether you own a warehouse or manufacturing unit, fund transfer is a common activity you have to perform anytime. Whether, you are transferring money to other territory or you are depositing funds for investment purposes, you have to pay a certain amount as tax. In contrast, to that UAE don’t demand any taxes on funds from owners running a business in any of its FZ.
Zero custom duties, imports and exports are totally exempted from all kinds of custom duties. Whether, you are importing finished goods or raw material for your manufacturing plant.