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Business Setup in Freezone | UAE 

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There's no denying that the pandemic had such an impact on how businesses operate. During the epidemic, business owners in Dubai and around the world had to adapt their structures and find new ways to prosper. While this is a novel method of doing business at the moment, no one knows when things will return to normal. That isn't to say that new firms shouldn't open at this difficult period. In fact, numerous small enterprises are thriving as a result of the new normal.

Continue reading to learn which businesses are most likely to prosper in a post-pandemic future, as well as how easy it is to set up a firm in the UAE.

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Why Should You Start a Business in the United Arab Emirates?

It doesn't get much better than the United Arab Emirates if you want to establish a new business in a flourishing economy. The country is regarded as one of the most important economic hubs in the Middle East. The United Arab Emirates is well-known for its strategic location and easy company establishment.

There are seven emirates in the UAE, each with its own set of advantages for setting up a business on the mainland, in a free zone, or offshore.

Dubai

Dubai is regarded as the UAE's financial capital. The Emirate's main sectors include real estate, trade, tourism, and financial services. In addition, the emirate has approximately 30 Free Zones, each of which offers tax exemptions and property ownership incentives.

Sharjah

Sharjah is a fantastic place to start a business in the United Arab Emirates. You'll receive all of the benefits of a big city without the hefty price tag. Over the last few years, the area has seen enormous expansion in terms of technology, arts, and culture.

Abu Dhabi

The capital of the United Arab Emirates is Abu Dhabi. The city is noted for its opulence and is one of the wealthiest in the UAE. This area's main industries are real estate, industrial development, and tourism.

Ajman

Ajman lies at a fantastic location, just at the Arabian Gulf's entrance. Business owners may access major cities, four ports, and two international airports from this area. Manufacturing, retail, and service industries are all popular in this Emirate.

Fujairah

Fujairah is the country's fifth-largest emirate. Because it possesses both a seaport and an airport, it is a hotspot for import and export enterprises. It is also the only Emirate on the Arabian Gulf, making it well-connected to other important cities such as Dubai, Sharjah, and Abu Dhabi.

Ras Al Khaimah

Ras Al Khaimah (RAK) is only 45 minutes from Dubai. Its Free Zones are the closest to China, India, Iran, Pakistan, and the Commonwealth of Independent States in the Far East.

Umm Al Quwain

This up-and-coming state is close to Dubai and Sharjah, making it ideal for international travel. Umm Al Quwain is regarded as one of the most cost-effective Emirates for establishing a business in the UAE, with a simple registration process.

Not only are there seven growing places in the UAE to choose from for business setup, but there is also a long list of advantages to doing business here.

Here are just a few of the many reasons why entrepreneurs from all over the world choose to set up shop in the UAE:

  • No personal or corporate taxes
  • Growing economy
  • No foreign exchange controls
  • Access to a diversified economy
  • Modern facilities and infrastructure
  • Free zone benefits
  • Low import duty
  • Flexible government regulations

How to Start a Business in the United Arab Emirates?

Foreign investors who want to set up businesses in UAE must adhere to the following guidelines:

  • Choose the company's organisational structure.
  • submit an application for a residence permit (if applicable).
  • The company name will be held in reserve.
  • submit an application for a business licence
  • Obtain the company's legal address.
  • obtain work licences for international workers (if required).

It's good to know that the free zone authority where the business will operate will handle all visa applications and company registration procedures in a hurry.

Our experts can help you prepare the documentation you'll need to start a free zone business in the UAE.

In order to register a corporation in the Dubai free zones, the following requirements must be met:

  • Most free zones allow for single or multiple owners, and the number of shareholders determines the free zone company's corporate form.
  • The Memorandum and Articles of Association are the documents that must be completed in order to register a free zone corporation.
  • The amount of money required to start a free zone firm is determined by the Dubai free zone authorities (each free zone has its own regulations in this sense).
  • Regardless of whatever Dubai free zone a company chooses, it must apply for a licence based on the activities it plans to do.
  • In the case of foreigners, appointing a local agent is required to complete the Dubai free zone company registration process.

Types of businesses that can be established in Dubai's free zones

Foreign entrepreneurs can form free-zone limited liability firms or function as sole traders, while foreign corporations can form free-zone corporations with corporate shareholders or open branch offices. Alternatively, investors can act as sole proprietors if they apply for one of the free zone authorities' professional licences.

The following licences are available regardless of the sort of firm that is established in one of Dubai's free zones:

General trading licences, trading licences, industrial licences, national industrial licences, and service licences are all examples of general trading licences.

Minimum share capital requirements apply to specific sorts of activity, depending on the free zone where the company will be formed.

Dubai's free zones have their own taxation system

The UAE's taxation structure, which mostly applies to enterprises in the oil and financial industries, is one of the most compelling reasons for international investors to establish businesses there. It's worth noting that each Emirate has its unique set of tax rules. Dubai has one of the most favourable tax schemes among them. In addition, Dubai includes a large number of free zones that are self-governing and have their own taxation regimes.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

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