About 20 to 30 years back, the only factor known about Dubai was its oil extraction. The government and elite people of Dubai mainly relied on their oil reserves to earn the maximum profits. Soon they realized that oil reserves would sooner or later parish, and they needed other sources of business and investment for generations. This is where the think tank got the idea of developing the infrastructure and giving a boost to tourism and other businesses like real estate and industrialization. Huge investments were made in the area of tourism, and now it’s providing fruitful results for Dubai.
But they didn’t stop here and constantly develop new and innovative ideas to make the growth levels sustainable for a longer time. The government of Dubai is offering huge leverages for locals, as well as for international investors and businessmen. Invest here in setting up their facilities and industries to increase regional business.
Development of Free Zone in the Region:
In the initial phase, the government developed an industrial zone like any other country, where residential and industrial zones are separated for many reasons. They also got a huge response, and many international and local organizations started their facilities in the industrial zone of Dubai. The government took another step ahead. They now developed a Freezone to boost the business and provide extra freezone services to the organizations willing to set up their industries or offices in Dubai Freezone.
Stats about Starting Your Business in Dubai Free Zone:
To attract businesses, offices, and industries government of Dubai provided some of the top benefits. Here we will discuss some of the most prominent features and advantages anyone can gain from the Dubai Freezone company formation.
Full ownership of the business without any discrimination:
Most foreign people who start a business in the Middle East always require a sponsor as their business partner. These sponsors may invest or work as sleeping partners, but their stake is always present in the company, and you cannot be 100% owner of your business. Here in Freezone Dubai, there is no such requirement for the sponsor. You can establish your business, and you will be considered one hundred percent owner of your business, regardless of nationality or origin.
Exemption from Import and Export Duties:
If you have your office or industry in the conventional industrial area of Dubai and are frequently involved in importing and exporting things, then you are in the wrong place. You need to set up your office or industry in Freezone Dubai. Another major facility Government of Dubai provides to the importers and exports is that they don’t have to pay any duties on the goods they import for manufacturing their goods. Once these goods are ready for shipments internationally, there are also no export duties.
You can Keep Your Operations Confidential:
In conventional, mainland industrial zones, you must disclose each and every operation of your organization or office. Government possesses full rights to know each and every process of your organization. On the other hand, if you have established your business or office in Dubai Freezone, you don’t need to disclose any business process or operation to anyone. This is considered one of the region’s best benefits of a free zone.
Full Tax Exemption:
Suppose you are doing business in Dubai and willing to get tax exemptions on your business income. Then we advise you to set up your business in the free zone. Freezone not only gives you tax exemptions on your business earnings, but at the same time, your personal earnings will also be tax exempted. The organizations are exempted from corporate taxes for 15 years. The tenure can also be renewed for a very minimum amount of fees.
Physical Office or facility is Not Necessary:
It is mandatory to own a physical office in UAE to establish a business, but if you’re establishing your business in Freezone Dubai, there is an exception. It is as per your requirement or willingness that you setup your office or not. If you think you don’t need a physical office and can run your operations virtually, you can easily do this without compulsion.