Reasons Behind Increasing Popularity of Freezone for Business Set up in Dubaiby Aaqil Faraj Business Setup in Dubai
In Dubai, there are around 30 Freezones. You could find a Freezone for about every type of business activity and the key benefit is that Freezones provide dedicated infrastructure. For instance, The Dubai Multi-Commodities Centre host gold & commodities exchange that making it a great destination for the concerned companies.
Reasons to Setup Business in Dubai Freezone
It is quite common for the bigger companies to be situated in Freezones. Freezone could provide businesses with growth opportunities. A consultant experienced in the matters of company formation in Dubai could help you determine the right Freezone for you the business. And, tell you how Dubai business setup cost is comparatively lower. Reasons that make Freezone company set up in Dubai a beneficial choice includes
· Exemption from Taxes & No Annual Audit
It is worth noting that Freezone companies need not have their accounts audited each year, that is mandatory for mainland companies. However, certain Freezones need companies to have their accounts audited once in 3 years. This still represents huge cost-savings in the administrative fees. Financially, Freezone business setup in Dubai makes a lot of sense.
You need not pay the VAT of 5% to do the business with the company working in the same or another Freezone. Mainland company doesn’t have this advantage. A company in Freezone would need to pay VAT only while doing business with a company on the mainland or an individual.
· Freedom to Repatriate Capital & Profits
In UAE, there is no such requirement that a company needs to keep a percentage of its capital or profits within the country. You could repatriate the invested capital as well as profits as much as you wish and when you wish. And, when it comes to international transactions, there is much freedom. You could transact the business in EUR, USD, GBP, or any major international currency.
· Change Office with Changing Address
Another key advantage of Freezone company setup in Dubai is that you could scale up or down easily as per your operational requirements. In case you need to scale up, you could move into the better and big fully-furnished office. Else, you could move into a bigger office that is semi-furnished and set it up as per your taste.
Whenever you feel you need more staff, you could move easily into a big office. If you plan to outsource some of the business functions, you could move to a smaller office. In case your business is doing well and you require a warehouse, you could get the one in Freezone easily. No matter whether you need a smaller or a bigger warehouse, you could move into the one that fits your requirements.
You could enjoy a lot of flexibility through Dubai Freezone company formation. You could shift the office near your new warehouse. Your correspondence as well as mailing address would be the same as the registered office address is the PO Box address.
· Exemption From Labour Restrictions
The companies on the mainland need to ensure 10% of the workforce is made from Emiratis. This came into effect from September 2021 and the companies have 5 years for fulfilling. However, the Freezone business setup in Dubai does not need to comply with this rule. You could hire the staff belonging to any nation as well as there are no minimum wages.
Therefore, you need not worry about looking for appropriate Emirati staff. You could hire whoever is qualified and who you think possesses the potential. In case you plan to hire an employee, you would need 100 sq. feet of commercial space/ office.
· Exemption From Export and Import Duties
Another advantage you could enjoy through Freezone company setup in Dubai is an exemption from the export/ import duties. Without paying any import duty, you could import goods for the sale in UAE. You could also import the machinery and equipment for the business operations. It is great for the individuals running industrial operations. Moreover, there are no export duties for companies situated in Freezones.
Both factors make Freezones an attractive destination for individuals in the re-export industry. It is common for companies to import items, apply finishing touches and then export them. Some companies import raw materials, assemble the items in the Freezone and export them while some make minimal changes. You could consider these benefits and plan for your Dubai Freezone company formation.
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Created on Jan 13th 2022 23:15. Viewed 648 times.