Today, the United Arab Emirates is considered one of the most favorable places to create a business. And even despite the fact that from June 1, 2023 the size of the corporate tax rate from zero increased to 9%, this place is still very popular with those who dream of their own business. It’s worth noting right away that only businesses that earn from AED 375,000 (about $102,000) should pay the nine percent tax.
How Good are Free Zones in the UAE?
Free Zones in any country are always very attractive for investors. Free Zones in the UAE are doubly attractive. After all, the Emirates have created for foreign investors almost unique conditions for quiet work.
What are the advantages of opening a company in one of these zones:
- The opportunity to open a company with one hundred percent foreign management;
- No need to pay any taxes – either personal or corporate;
- Opportunity to obtain an investor visa for yourself and your family
- Full repatriation of both profits and all capital;
- No export or import duties.
At the same time, it is possible to register a company in just a few days. A foreign entrepreneur who decides to open a business in the UAE, in a free economic zone (FEZ), gets access to modern thematic infrastructure and can conduct international business from an advanced jurisdiction.
It is worth remembering that the conditions for registering a business in the free zone may differ depending on the emirate. However, there are some activities that a foreigner can engage in in the UAE only after approval from the federal authorities.
Meydan Free Zone
Meydan FEZ was established in 2009 in the Emirate of Dubai. It provides entrepreneurs with unique conditions for international trade and the growth of an enterprise of any size. A company can be registered online, online. The types of licenses available here are:
- consulting license;
- media license;
- commercial MFZ.
Near the free zone are all the financial and commercial centers so necessary for business, as well as Dubai International Airport.
DUQE Free Zones
Those entrepreneurs who plan to engage in trade in the UAE, should pay attention to the Free Zone DUQE, because it is here the cheapest trade license. The UAE Freezone is unique in its kind, located on board the Queen Elizabeth 2 (QE2), one of the most famous cruise ships of all time. Start-up companies can take advantage of a unique package that includes lease agreements, license fee, one visa type quota, six-month work permit, up to three business activities and more.
Dubai Silicon Oasis (DSO)
Technical professionals, engineers, and high-tech companies are encouraged to check out Dubai Silicon Oasis (DSO). A special business incubator has been established here to support young talented people. For the incubator members there are simplified conditions for company registration. In this case the incorporation costs will be much lower than the standard rates.
The FEZ is located on an area of 7.2 million square meters, there is a three-level data processing center and modern infrastructure functions here. The purpose of creating Dubai Silicon Oasis was to promote high technologies by creating a kind of Silicon Valley.
Free Zones in Sharjah
Sharjah FEZ was established in 1995 and almost immediately became one of the most popular among foreign entrepreneurs, as here all conditions for the realization of successful business projects are created. The cost of some licenses compared to Dubai in Sharjah is much lower. Prices start from 1500 dollars.
Freezone Sharjah Publishing City (Sharjah Publishing City) is considered an ideal place for a successful start in the business arena by budding entrepreneurs. The license for trade activities is processed quickly and is inexpensive.
SHAMS is another relatively inexpensive free economic zone in Sharjah. It is often chosen by freelancers because of its attractive conditions.
Young start-ups looking for a suitable business incubator can opt for the Sharjah Research Technology Innovation Park (SRTIP). SRTIP will suit strata working in sustainable energy, waste recycling companies, cleaning systems, digital technologies, and consulting.
The process of company registration in these zones is streamlined, often taking just a few days. Each emirate in the UAE offers its own unique conditions for business registration, and while some activities may require federal approval, there are numerous options to suit various business needs. Ultimately, the UAE’s Free Economic Zones provide a fertile ground for business growth and success, catering to a diverse range of industries and entrepreneurial aspirations.