Economic Zone
2023 was the year of changes in the UAE as the corporate tax rate increased from zero to 9% (though some free economic zones in the Emirates still offer tax exemption). Despite this fact, the country with its pro-business legal framework, well-developed infrastructure, and an abundance of advantages for businesses remains a popular jurisdiction for many entrepreneurs from all over the world.
Prospective business owners are naturally looking for the best offers to reduce the cost of company registration and benefit from as many incentives as possible. And that’s where UAE free economic zones come in useful. Read a detailed article on our portal to choose the cheapest freezone in the UAE and get in touch with our specialists who will help you make the final choice free of charge and offer you reasonable assistance with the administrative side, like dealing with company incorporation organizations or opening a bank account.
In this small article, we will take a general look at free zones in the UAE and discuss the benefits of some of them located in Dubai.
UAE Freezone Company: Benefits
Free zones are the areas specifically created to attract foreign businesses as they propose beneficial conditions. Freezone companies are typically not hard to establish and keep operational, and all barriers to their business activities are usually removed. This is a general situation typical of any country that establishes a free zone, and the UAE is no exception.
Below are the advantages you get by choosing a free zone in the Emirates:
- Zero corporate tax
- Full foreign ownership of real property in the emirate
- No limits set on profit conversion
- Different tax and customs benefits
- Simplified company setup procedure
However, each zone offers its own perks, as well as requirements and regulations, and independently issues business licenses. Each emirate regulates business activities in free zones on its own, while some of them will require the approval of federal institutions. That’s why we offer the help of qualified specialists who will look at your business type and priorities and recommend the best-matching free zone to you on a case-by-case basis.
The tax rate in each freezone may range from zero to 9%, depending on the type of income generated by the business as classified under the Corporate Tax Law.
Cheapest UAE Free Zone
If you register a company in the free zone, you will need to take care of the license, office lease, salaries payable to employees, and other things. The major item of expense is the license, so it can be used to compare the free zones.
The most affordable trading license is granted by Sharjah Research, Technology and Innovation Park (SRTI Park) – it only costs AED 5,500. There are four more zones that are considered cheap: Dubai Silicon Oasis, Ras Al Khaimah Economic Zone, Meydan Free Zone, and DUQE Free Zone in Dubai, with license payments ranging between AED 11,440 and 12,500.
Prices may change, so follow the link above to get updated information from our experts.
Affordable Dubai Free Zones
There are a few free economic zones in Dubai which propose different conditions and are suitable for particular purposes. Let’s look at them to see which one may be a good match for your business goals.
Dubai International Financial Center (DIFC)
As the name suggests, this area is mainly focused on financial services and it may be good for entrepreneurs that:
- Engage in fintech activities
- Arrange investment projects
- Provide banking services
- Carry out trading activities
- Render fund management services
- Provide financial consultancy services
There are only two free zones in the UAE that specialize in financial activities, so it can be the one you need. You will get the following benefits:
- The company can be fully owned by a foreigner
- The legal system that regulates financial activities is quite reliable and time-proven
- There are regulations in place that ensure the security of your cross-border transactions
- You are free to repatriate your profits
- The employee income will not be taxed
Does the free zone specialization on financial activities mean that you cannot establish a company of a different kind in it? Fortunately, it does not. If you wish to set up a retail company, open a fitness gym, or a public catering company, you are welcome to do so.
International Free Zone Authority (IFZA)
IFZA offers an inexpensive trade license to entrepreneurs (about AED 12,000) and will give you the following benefits:
- You will be free from annual audit reports
- A 3-year investor visa will be given to you
- You will be able to run the company remotely
- This is a versatile zone that allows entrepreneurs form various companies, from startups to manufacturing enterprises.
The main reason why entrepreneurs choose this opportunity is the minimization of capital requirements and annual expenses.
Meydan Free Zone, Dubai (MFZ)
If you want to save on office rent, this is a good place for you: you are allowed to register an office in any other Dubai district if you find the costs more affordable.
Here are the licenses issued by Meydan Free Zone:
- Media license that will enable you to conduct any business activities connected with media, advertising, or communication
- Consultancy license granted to legal entities rendering business and other consulting services
- Commercial license that permits import and export activities and any trade in general
DUQE Zone
Do you want to have a company in a unique free economic zone located on the cruise liner? Then DUQE zone is your choice!
It offers attractive conditions for startups and developers seeking to improve their business. If you are a budding company that needs really special conditions for a start, you are welcome to register your business here.
Conclusion
Of course, that is not all. You will find an overview of other free zones by clicking on the above link – and if you are looking for information on UAE business opportunities, our portal will offer you a lot.
However, the easiest way to understand whether the opportunity is worth considering in your case is to delegate this decision to a specialist who has helped several dozens of prospective company owners to choose the right place. You are welcome to book a one-on-one session and discuss all your problems and doubts – and resolve them once and for all.
Opportunities come and go, so don’t hesitate for too long!
