If you are considering of establishing a business in UAE or Dubai, perhaps you have heard about setting it up in free zones. Do you know what free zones means?
What Are Free Zones?
Free Zones, otherwise known as free trade zones, are meant for boosting international business by providing 100% ownership to expatriates along with single window administration convenience. Free zones are part of the territories of a country but considered to be outside the customs territory and subject to customs control rather than normal customs procedures. These are designated areas where certain taxes or restrictions on business or trade do not apply.
Incentives
- 100% Foreign company ownership, corporate & income tax exemptions, and repatriation of capital and profits
- Abundant and cheaper energy
- Exemption from all export and import duties
- Affordable workforce and easy recruitment procedures
- On-site customer inspection
- One-stop-shop administration services; and
- Can operate 24 hours a day
Limitations
- Custom Duty 5% is applicable for the local business
- Free Zone Companies are not allowed to trade directly with UAE market.
- Free Zone Companies can undertake the local business only via the locally appointed distributors.
Basically, setting up a Free Zone Company means that you will work without harsh customs requirements along with other restrictive structures. Also, you are exempted from the laws of the region.
Trivia Info Resource: www.marl-gulf.com
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