Free Zone Company Formation
FREE ZONE COMPANIES
Free Zone companies are legal entities incorporated in one of the designated free zones in Dubai or other emirates. Free zones offer 100% foreign ownership for 15 to 50 years, tax exemptions, and a range of incentives to attract foreign investment. A Free Zone company is governed by the laws and regulations of the respective free zone authority. This setup is ideal for businesses seeking a tax-free environment and the ease of doing business in Dubai.
Free Zone companies are exempt from customs and export duties when importing raw materials and equipment. They are allowed to trade internationally and may also own real estate within the UAE. Access to UAE services and products without an agent is permitted; however, sales within the UAE require partnering with a mainland-registered agent.
Other amenities include options for flexi-desk and flexi-office setups, excellent infrastructure, access to freehold property, and complete privacy for investors with limited reporting obligations. Company formation in the Free Zones is quicker than on the mainland and does not require the investor’s physical presence.
Features / advantages
- Full foreign ownership permitted
- Complete repatriation of capital and profits
- Exemption from income and corporate taxes
- Swift, efficient, and easy registration procedures
- No personal income tax
- No currency restrictions
- Cost-effective wage structures
- Flexible expatriate workforce hiring
- Uninterrupted import and export procedures
However, in free zones there are designated and non-designated zones. The laws and corporate tax vary depending on the free zone chosen and the company’s activities.