Foreign investors mainly have two choices of business setup in Dubai: free zones and the Mainland. Most business people prefer starting a business in Dubai Free Zones over the Mainland for several reasons, such as lower costs, easy company setup process, and 100% ownership in the business without involving a local sponsor.

The Dubai Free Zones play a critical role in the country’s economic growth and create more employment opportunities. Free zones are areas where taxes, employment, and restrictions on business operations differ from that of the Mainland. With an independent and greatly efficient regulatory structure, Dubai Free Zones are an excellent option for companies set up for foreign investors. Most free zones are situated near airports or seaports, making most business activities easy.

Features of Dubai free zone company formation

100% ownership

The Dubai mainland business formation requires foreign investors to have a UAE national (local sponsor) in the company. This has been a major turn-off for business people whose clients are based outside the UAE. Most foreign investors are attracted to Dubai’s free zone company setup due to 100% ownership.

Independent Regulatory Bodies

Dubai Free Zones are governed by respective regulatory authorities. The rules and regulations governing the business operations in each free zone depend on specific policies of the respective regulatory authorities. Independent regulatory bodies give business people more flexibility in establishing a company in free zones.

Significant tax exemptions and 100% repatriation of profits

Investors in Dubai free zone take home the profits they’ve earned. In addition, businesses enjoy tax exemptions due to the UAE’s zero income tax or corporate tax.

Most free zones are industry-specific

Expat business people prefer registering their company in Dubai Free Zones as they provide the option for starting a company in a free zone that focuses on their preferred industry. For instance, the Dubai Financial Centre (DIFC) is dedicated to the finance industry and Fintech companies.

How to select the right free zone to set up a business

  • Check all the activities in Dubai free zone and choose one that offers activities that fit your business.
  • Consider the free zones that provide excellent facilities matching your company’s requirements.
  • Choose a free zone with great connectivity in terms of land, air, and sea. Proximity to seaports and international airports should be your number one priority.
  • Consider the share capital requirement in the free zones

There are over thirty free zones in Dubai, and determining the right one for business setup is a crucial part of your investment journey. Consult FreeZoneMarket, one of the best company formation consultants in Dubai for a smooth business setup process. They provide business setup services in the UAE. You you want to start your business, check their Dubai Free Zones.