Benefits of setting up a free zone company in the United Arab Emirates
What is a Free Zone
Imagine a special place where businesses can operate with many advantages. Free zones are geographical areas which have their own, independent, business regulations that are different from the rest of the UAE. These rules and regulations are designed to make it easier for businesses to operate and succeed. Each free zone has its own free zone authority, which implements and oversees the rules. A free zone may also be called a free trade zone or a free economic zone.
Difference between free zone and mainland companies
The main difference between free zone companies and mainland companies is where they can operate.
Free zone companies can only operate within the free zone where they are licensed and with overseas businesses. They cannot do business directly with customers outside of the free zone, unless they appoint a local agent or distributor, which acts as an intermediary between the two parties.
Mainland companies, in contrast, can operate throughout the emirate where their trade license was issued, including the free zones (with a special permit), and they do not need a local agent.
Benefits of free zone companies
Here are the top 10 benefits of free zone companies in the UAE.
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100% Foreign Ownership
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100% Repatriation of Capital and Profits
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Exemption from Corporate and Income Taxes
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Exemption from Customs Duty
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Independent Regulations
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East access to regional and global markets
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State-of-the-art, modern infrastructure
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No requirements for a physical office
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Choice of legal structures
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Streamlined company formation processes
Sector Specific Free Zones
The UAE's free zones typically focus on a specific industry and draw companies from that field, as they will be equipped with the appropriate facilities to meet their needs. They also attract ancillary companies which provide support and convenience services to the businesses and the employees in the free zone, such as coffee shops, dry cleaners, accountants, hair dressers and supermarkets.
UAE free zones cover a huge variety of sectors, including: aerospace, creative industries, education, energy, financial services, healthcare, technology, industrial, media, logistics, pharmaceuticals and more.
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UAE free zone company setup. Page updated 29 August 2024.