Dubai is one of the emirates forming the United Arab Emirates. As a business haven, it is renowned for:
- Good infrastructure. The state-of-the-art infrastructure offers a good network and ample and elegant office space epitomized by the Burj Khalifa.
- Popular tourist destination. Hosting major cultural events and expos, Dubai boasts massive traffic, which forms an enormous customer base for start-ups and multinational corporations. Every year, the 3 billion tourists visiting Dubai explain why the service industry to influencers and freelancers’ businesses are flourishing.
- Stable political climate. Government policies are friendly to international companies, such as starting and operating a Dubai freezone company efficiently. They are 47 free zones in the seven emirates that combine to form the United Arab Emirates. These free zones are established in the economic hub of the emirates.
What are the benefits reaped by a Freezone company?
Firstly, the Dubai freezone companies can operate under 100% income and tax relief for up to five years. Sounds too good? The gate pass to join the vibrant tax-free zone is by creating a Dubai freezone company. The colossal tax reliefs serve to increase a business’ profit margin. Therefore, the room for growth is unlimited.
Secondly, Company formation in Dubai is highly simplified. To obtain an operating license, you only need to:
- Find a good name for your company
- Find a good business idea
- Register your company to operate in Dubai
- Apply for the company’s operating license. You will need a passport and a visa, not forgetting your business identification details.
Thirdly, company formation in Dubai does not enforce a local citizen shareholder presence. Therefore, you need to worry about not restructuring your management team and incorporating strangers into your Dubai freezone company. Also, Dubai free zones offer personal residency to the companies’ employees or manager. The number of work visas available is dependent on the nature of your business and the free zone, not to mention your office space. On average, most free zones in Dubai and UAE will offer one visa for every 10 square metres of office space. Additionally, the validity of the employee visas in the free zone area is three years, after which you will need to renew it, unlike the validity of working visas of employees outside the free zone, which is two years. More importantly, the personal residency in Dubai or UAE free zones does not impose taxes on your personal income or that of your Dubai freezone company. Additionally, the free zones are set up such that businesses offering similar service or product are set up in the specified free zones. For instance, the Dubai health care city is dominated by ultra-modern hospitals and medical teaching centres, while Dubai internet city has its specialty in information technology companies. This creates a pool of clients that is accessible to any business operating in that free zones.