We are aware of the complexities faced by the people when they plan on launching their business in the UAE. However, Do Business has been offering business consultancy services for over a decade.Setting up a business is a pretty hard task to accomplish, provided the legal requirements are all set, then it may not take you more than a week. Businesses can benefit a lot through free zones i.e. areas where commodities, goods, and services enjoy partial or even a full tax exemption. As far as the UAE is concerned, the economy has boosted because of increasing Dubai’s free zones. More than 150,000 companies are reaping benefits in Dubai free zone areas. Following are eight main reasons why launching a business can prove to be beneficial.
- Tax Exemption
One of the most important advantages of setting up a company in a free zone is the tax exemption. For a number of years, the business established there will not be paying taxes up to 10 or 15 years. Nevertheless, this does not mean that this policy may never be changed or renewed.Furthermore, businesses operating in such zones.
- Vibrant Economy
Dubai is considered as the most successful one among the Emirates and has been remarkably productive in branch out away from oil, getting over after 2009’s recession. As far as economic growth is concerned, Dubai is the most successful one. Almost 60% of Dubai’s GDP relies on tourism, trade, logistics, and transportation sectors.
- Infrastructure Like No Other
Dubai is proud to have all the facilities of the modern era, including airports, road networks, telecommunications, and ports. The city continues to be a dominating factor and keeps on attracting the tourists from different parts of the world, and with the arrival of World Expo 2020, the amount of expenditure on the infrastructure has doubled. As a matter of fact, to connect various expo site pavilions, the Roads and Transport Authority (RTA) of Dubai has announced plans to construct an underground railway system.
- Easy Process of Registration:
As compared to setting up a business in the heartland of Dubai, it is much easier to register a companyin a Dubai free zone.All it takes is one step to complete the process for registration regarding business set up.
- Support and assistance:
The authorities of the free zone are willing to provide assistance and supportsince the time of business set up and henceforth.Many free zones provide assistance to the applicable dependents such as domestic staff or spouse and shareholders apply for their respective visas. Whereas others, also helpin arranging your meetings in-branch, opening corporate bank accounts, and advising on the best bank to suit your needs.
- Low Startup Costs
The startup cost in Ajman Free Zone is considered to be an ideal choice because of its cost-effective approach. No matter what your enterprise size is, there is a welcome to everyone by Ajman Fee Zone. Particularly, mid and small-sized companies, AFZ is an ideal place for all sorts of business affairs.
- Foreign ownership:
A foreign company enjoys 100% ownership rightsin the free zones of the UAE. This is the reason why many overseas entrepreneurs want to set up their businesses in the free zone rather than the mainland.
- Trading within the UAE:
Perhaps the only drawback for business operating in the free zones of UAE is that they are not allowed to directly trade with the UAE’s local market. In case if you wish to work with the local distributor, in that case,you will have to them a fee as a return for their services rendered.
Conclusion:
Are you the one planning to establish your company in the UAE free zone? Among all the free zones, Ajman free zone is considered as the best for business. The companies operating in the free zones enjoy the benefits mentioned above. Hence this is the reasons why the problems faced by them are the minimal ones and opportunities allow them to reap benefits.