#freezonebusinesssetupuae

The free zones of UAE (also known as free trade zones) are essentially those economic areas where goods & services can be traded, typically at preferential tax & customs rates. They were originally rolled out to boost the international business in the region by offering benefits such as 100% ownership to the foreign company. Currently, there are 45 free zones all across the UAE.

Over the years, the free zones of UAE have evolved to offer the ever-increasing advantages to the businesses within them. There are many free zones which cater to the specific industries or business types.

Read on to understand why Freezone business setup UAE is considered an attractive option.

Why set Up a Business in a Free zone?

If you’re planning to set up a company in the UAE, there are plenty of reasons to opt for a free zone.

Easy Setup

The setup process in most of the free zones in the UAE is incredibly straightforward. However, the exact application process will depend upon your business activity and the chosen free zone, but in many cases, you only have to provide some basic documentation like passport copies and business paperwork. The whole process usually takes just a week or two. Additionally, many free zones also offer Flexi-desk and virtual packages that enable you to make use of the free zone address & facilities on an ad-hoc basis.

Tax & Duty

The tax regime is perhaps one of the most compelling reasons to opt for a Freezone business setup UAE. By setting up a business in a free zone, along with benefiting from 0% corporate and personal tax, your business will also be exempted from VAT. And that’s not all. Free zone businesses are also exempted from import and export tax and can trade with no currency restrictions.

Foreign Ownership

Another major advantage of setting up a business in a free zone is foreign company ownership. Most entrepreneurs from overseas who want to set up a company in the UAE mainland need to work with a local partner to do business. Though this is not the case in the free zones of UAE, when you opt for Freezone business setup UAE, you get to retain 100% ownership.

Privacy Protection

There have been recent rise the financial problems faced by the economies around globe. The UAE is not different. Since the fall in oil prices in the year 2014 UAE has been managing the budget deficit gap, and it is expected grow. However, one more aspect that differentiates UAE from the rest of the economies is the adaptation of the strategy to divert. UAE made changed and brought them in to stop its economy from relying only on oil that much. As a result of which, there is growing the public and private sector.

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Making business setup in UAE one of the best investment decision. After experiencing the preparations for Expo 2020, one can see definitely that in the coming years the GDP will rise by 4-5%. In 2016, UAE experienced a 3.1% growth. Despite the fact that there are still various risks and you never know the outcome, Dubai is a a business hub for either new or developing. The increase in trade in the country also means the possibility to gain new clients and expand locally and even globally. business setup in Dubai is something worth considering if you want the perfect place with a future and opportunities to become independent and blossoming.

Dubai has developed well-managed banking system, and Global Integrated Services offers services to business which will help them with opening a bank account. We are leading business setup company in UAE, providing pro services for business setup in Dubai to facilitate you in every step of opening or finding businesses for sale in Dubai much easier and faster. Our consulting services can additionally help to deal with the changes in the tax system like an additional tax in force from the beginning of 2018. We can deal with various questions regarding Company formation in Dubai, Company formation in Dubai and other specific approaches that every person might have a different plan.

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Business setup in UAE can be done either by establishing a free zone company or by forming an offshore company at the free zones. both offer different sets of opportunities to investors and allow them to earn profits. Global Integrated Services will help you with legal formalities, analysis of Business setup in UAE.

Free zone company registration in Dubai has certain advantages to the investor

I) Government incentives

Dubai Free trade zones are specific areas which are offering tax, tariff and regulatory exemptions in order to attract export-oriented companies.

The types of incentives that are given depends greatly on the different free zones of Dubai, there are kore than 20 different freezones now available in UAE. On an average, investors that go Free zone company registration in Dubai can enjoy the following benefits:

Exemption from duties;

Exemption from import and export tax;

Exemption from corporate tax;

100% foreign ownership;

Increase in limit of foreign employees.

II) Location and accessibility

Apart from these incentives, the locality of Dubai’s free zones are heavily advantageous in reducing the cost of transportation as most of the free zones are located next to ports, airports or highways is especially beneficial for an efficient and timely export. These also allow easy movement of assets from one location to another, and helps.

III) State of the art Infrastructure

The free zones of Dubai are also offering far better and cheaper infrastructure then available in any other free zones other than UAE. Many popular free zones offer state-of-the-art office spaces that are custom made for investors. These free zones are now home to many international brands that have opted for Free zone company registration in Dubai, and enjoy the benefits of the free zones. there are many examples of free zone offering state of the art infrastructure, Dubai Media city, Dubai Internet city, Jebel Ali Free zone, Dubai Airport Free Zone, and many other free zones are all offering highly equipped offices, facilities which include 24/7 security, communication networks and much more.

According to "A World History of Tax Rebellions," the earliest tax was introduced in 594 B.C and taxes has since then merged into the fiscal policies of many nations. These taxes provide a source of revenue to the government, the history that revolves around value added taxes have been such that they were introduced during the time when governments were in need for revenues. VAT system is one of the most common types of tax found around the world. More than, 160 countries have implemented VAT or taxing system which is similar to VAT, including all major developed countries. UAE have been a country that was free from taxes. However, earlier this year it was announced that the government of UAE in collaboration with the Gulf common countries, will introduce a 5% VAT in UAE. VAT on the contrary provides revenues without affecting the income, as an income tax would.

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This VAT in UAE is going to be imposed on many different goods and services, and surely UAE is not the first country to introduce VAT into its economic system. Since, the fall in oil prices, the revenues for the government have been falling, and the introduction of VAT in UAE is aimed to fill in the revenue gap for the government.

How are businesses going to be affected by it?

The government of UAE has announced that from the 1st January 2018, the VAT in UAE would be implemented. The government has already announced revenue brackets for business which would need to register for VAT in UAE. Organizations must register for VAT if the taxable supplies and imports are more the mandatory registration bracket of AED 375,000. Organizations can also to register for VAT in UAE voluntarily if they are under the mandatory registration bracket, but exceed the voluntary registration bracket of AED 187,500.

Goods like, Electronics, smart phones, cars, jewelry, watches, eating out, and entertainment will fall under the taxed category. It is also expected to introduce excise duties on certain beverages that are deemed to be harmful to health, including those with high sugar content. Whereas necessities like education, health, and transport will be free from VAT in UAE.

To comply with VAT in UAE businesses would have to comply and would need to record their financial transactions and ensure that the financial records are accurate and up to date. To make sure that organizations are presenting true financial statements, they would need to get their financial statements audited. As these financial statements would be prove of under which bracket do the business fall under.

UAE was founded in 1972, and is bases on 7th different Sheikhdoms. Dubai, Sharjah, Abu Dhabi, Ajman, Ras Al Khaimah, Fujairah, Umm Al Quwain. The country like it’s all other neighboring middle eastern is oil rich, and has the 7th largest reserve in the world. After the discovery of oil, the economy faced a massive economic boom. Soon the country realized to sustain the growth achieved through the economic boom, that it needs to diversify.

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UAE is aiming to reduce its dependence on oil to only 20%, and it is doing this only to increase stability in the economy. As it was evident, that through the results of previous efforts, UAE remained unaffected with the sharp fall in oil prices after 2014. UAE is offering free zones in the economy to attract business investment. These free zones are offering 100% ownership to foreign investors, with full tax exemption for businesses registered in the free trade zone. There would be no duties on exports or imports from the free trade zones.

UAE is offering a variety of free trade zones in the city. These free trade zones are meant to enhance the development of different economic sectors in the city and increase investments through free zone business setup in UAE. From Dubai Media city to Dubai Airport Free Zone, these free trade zones are offering similar benefits to the investors as mentioned above. The first free trade zone was set up in Dubai in 1985, and today it is one of the largest free trade zone in the world. The Jebel Ali Port the 9th busiest sea port in the world, with its 20,000 registered companies in the free trade zone, and 140,000+ employed in these free trade zone companies. The Jebel Ali free trade zone earns 21% of Dubai’s GDP.

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