Over the past few decades, the UAE government is playing a vital role in bringing foreign investors to UAE around the world. This government is taking proactive initiatives for the betterment of the country’s economy and introducing business-friendly policies to people from other countries. That’s why we are witnessing the excellent economic progress of this country. Setting up a business in UAE allows you to enjoy some amazing perks related to tax and finance. There are three main business zones for foreigners like offshore, free zone, and the mainland. However, when it comes to setting up a company in UAE, the majority of investors choose Freezone for business.
See here the registration process in Shams free zone Sharjah.
What are the free zones?
Free zones in UAE are special business regions where you can set up your company after getting a business license. UAE consists of 40 free zones in all emirates. The in-charge body of the free zone is known as the free zone authority that issues licenses for business setup. In this region, you can set up three types of business entities such as
- Free zone establishment (FZE)
- Free zone Company (FZC)
- Branch of business concern
Benefits of establishing a business in a free zone
You have complete ownership:
One of the great benefits of establishing a company in a free zone is you have 100% ownership of your business, unlike mainland business. You don’t have to find local sponsorship for setting up a business in this region. You have the right to enjoy your hundred percent profits.
No currency regulations:
If you are looking to form a mainland company, you have to face restrictions related to currency regulations for foreign transactions. However, in free zone areas, you are free from such restrictions as this region does not ask for currency regulations while transactions. This way, you can make financial transactions hassle-free.
Exemption on import/export duties:
Another benefit of Free zone business is you have an exemption on import/export duties. As business owners, you are allowed to import goods without paying any duty. This is how they are promoting International trade within the country.
Forming a free zone company means you have income tax and corporate tax exemptions. This is another significant reason why foreigners consider setting up business in UAE free zone.
How to register a trademark in UAE? Read this.