How to Start Business in Dubai Free Zone
What do you need to know before starting a business in Dubai Free zone? Read our ultimate guide and learn what you need to consider when deciding whether or not this is the right place for your company. Businesses who want to start up in Dubai Free zone can take advantage of many benefits, such as tax-free status, no tariffs or quotas on imports, 100% foreign ownership without government approval, and more!
What is a Dubai Free Zone
A Free zone company is a type of business entity that enjoys special economic and tax status in Dubai, UAE. It can be seen as an offshore firm since it’s not subject to local taxes and regulations while operating within the free trade zone. The reason for this lenient regulation is that companies registered under such entities are aimed at foreign investors who are looking to establish business outside of their home country.
Companies registered with Dubai free zones are given a number of incentives since they’re considered vital towards achieving the goals set forth by the Dubai government to become a leading trade hub. Some of the incentives are tax-free operations, exemption from certain labour laws that apply in Dubai, and access to attractive financing schemes provided by local banks.
How to Choose the Right Free Zone for Your Business
Dubai is home to several free zones which offer the infrastructure and setup that many businesses need. There are a number of things companies should consider before opening up shop in Dubai, including:
– The type of business they operate; for example, retail or technology-based (e.g., e-commerce) firms may be better suited to Dubai Internet City or Dubai Media City
– Which zones are best suited for their target market; since each zone caters to different types of businesses, it is important that they choose one which will be most beneficial
– The number of employees needed for the business
– The amount of capital required by the company. For example, Dubai International Financial Centre (DIFC) is a good choice for those who need to raise capital
– Dubai Knowledge Park, Dubai Studio City, and Dubai Healthcare City are great places for companies involved in the creative sector.
