Nations across the globe are competing to bring in more investors to turbocharger their economies and unlock new opportunities for growth. One such country is UAE which provides you an area called the ‘free zone’ where you get to explore the opportunities for your business setups. Free zones are the powerful gateways, offering unparalleled opportunities which can drive seamless growth for your business. These zones create an ideal environment for the business to thrive and flourish. Let’s dive into the opportunities that are there in these free zones and give you an overall perspective of starting a business in the UAE.
What are free zones?
Free zones are the dedicated areas in UAE, where a person who is willing to start his business can do it without much trouble and hassle. Setting up a business in their free zones is super easy with less compliances and more profits. In simple words, free zones are the economic areas, specially set up by the government to attract companies and investors in the UAE.
Unique advantages of the free zones
Following are the advantages that you will get if you wish to establish your business in these free zones –
- Exemption on took/axes – heavy and complicated taxation erodes the investors interest in entering such a market. In contrast, UAE free zones follow low tax policy offering exemptions from corporate taxes, value added taxes and customs, making them highly attractive to customers.
- Absolute repatriation – repatriation means sending money back to one’s own country. Foreign investors will benefit from 100% repatriation for both the capital and profits.
- Absolute ownership – for setting up a business in the UAE you don’t need a local Emirati sponsor. You will have full ownership of your business.
- Easy process – Establishing business in UAE is incredibly straightforward and hassle free. There are less compliances that will ease up your work. Additionally, free zone authorities provide remote services for setting up the business.
- Location & infrastructure – these free zones are located in the most strategic part of UAE which provides unparalleled access to regional and global markets. Further, the free zones are equipped with the state-of-the-art infrastructure to give physical support to your aims and aspirations.
Now, you need a license to kick start your business. For operating a business in free zone areas, you need a license issued by the government. A license is required because this will legally authorize you to set up your business in UAE and to avail all the privileges provided by the government.
Following are the types of licenses granted and the opportunities which they provide–
- E-commerce license – there are three types of licences which are issued by the government of UAE. They are E Trader licence (only be obtained under single ownership by UAE and GCC), Portal License (this is for non-UAE nationals), Virtual Company License (granted to overseas investors and non-residents)
- Industry licences – this license enables you to start off your operation activities in the UAE such as paper production, petroleum products manufacturing, food processing etc.
- Commercial licence – allows business to trade physical products such as jewellery shops, hardware shops, beauty supply stores etc.
- Professional licence – is given to businesses providing professional services or consultancy such as doctors, engineers, fitness trainers, IT, legal etc.
- National industry licence – this license is granted after confirming to the following criteria-
- The company must be registered with the national GCC countries and own a majority share (51% or more ) in the partnership.
- 40% manufacturing must take place in a free zone, at least.
- Companies holding a national license are exempted from the taxes on imports from the Arab states of the GCC. This will facilitate exemption from import taxes for goods traded within GCC countries.
Conclusion
The diverse license provided by the government which acts as a gateway of unlocking opportunities for entrepreneurs and businesses. Whether it is outsourcing, operations, media, these zones offer tax exemptions, 100% repatriation, 100% ownership giving an extra edge to your business. With this, UAE Free Zones have established themselves as global hubs for business excellence, empowering organizations to thrive in a competitive international market. Embrace and explore the privileges of these dynamic zones to unlock your business’s full potential and achieve lasting success.
