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Why Should Free Zone Be Your First Choice Of Business Location?

December 30, 2021

It is a well known fact that many investors and entrepreneurs are flocking to the shore of UAE to start their businesses in the Free zone. This statement might intrigue your interest in knowing more about a Free zone, so here’s what you need to know.

What Is A Free zone?

A free zone is the economically efficient area where the goods and services are usually traded at negotiable and preferential tax and custom rates. Trading in a Free zone has many benefits such as 100% company ownership. These advantages were provided to increase international business relations with the UAE..

Owing to the same, the advantages provided by the government for those willing to step in UAE’s land for business have increased with time. After becoming a commercial hub, UAE has segregated specific business locations for corresponding business activities. For example, the JAFZA Free Zone is linked to those performing import and export trade.

Why Should Free Zone Be Your First Choice Of Business Location?

As mentioned earlier, the UAE government has rolled out many advantages in favor of those who are willing to do business in the Free Zone. When it comes to setting up in a Free zone the process is incredibly straightforward. 

The process to set up only requires basic documents, however the exact process depends on the business activity and location. Speaking of location, the free zone also offers virtual packages and flexi-desk, allowing one to use the free zone facilities and address on an ad-hoc basis. 


What are the major benefits of obtaining a Freezone license?

1) Tax Exemption

0% Corporate and personal tax, exemption from VAT that is currently at 5% is one of the most compelling reasons for one to set up their business in UAE’s Free zone. Other than these benefits, the free zone traders are exempt from import and export taxes. There are also no currency restrictions in the free zone

2) 100% Foreign Ownership

Any entrepreneur setting up their business in UAE’s free zone does not require a local sponsor. They can retain 100% ownership of their company and establish their firm on their own terms.

3) Trading With The Locals

Many investors step back from considering setting up their business in the free zone as it does not allow them to trade with the locals directly. However, one can appoint a LSA that can help them do business with the locals. Another option could be to first establish a firm base of their company in free zone then open their branches in mainland to be a part of trading with the Emiratis directly

4) Support Of Free Zone Authorities

Free zone authorities are always available to support and provide assistance. From Visas for those who just started to networking services to get the business up and going. Freezone authorities provide assistance until setup and beyond.

5) Protection Of Privacy

The entrepreneurs setting up in the free zone are privacy conscious which is why there is no open directory of the company ownership and any other information regarding the company such as details of the shareholders are never disclosed. 

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