Indeed, the business is booming all across the UAE. It is also the flourishing business hub of the Middle East. Are you also thinking about a business setup in Dubai? The Dubai free zones are your ideal location to start a company if you wish to take a path to never-ending prosperity.
Notably, the UAE is one of the most trending locations among entrepreneurs. Owing to this, the region has seen massive economic advancements that have benefitted both the locals and the foreigners alike.
Moreover, Dubai, particularly is one of the most developed cities in the region which offers innumerable entrepreneurial benefits. These benefits make this city, one of the most reliable cities in the world, if you wish to embark on the path to prosperity. Some of them include the following:
- World-class infrastructures
- Low taxation
- Global connectivity
- Flourishing economy
What is a Free Zone Company?
It should be noted that free zones are more commonly referred to as “free trade zones”. These jurisdictions are popularly known to be reliable economic zones as they allow goods and services trading at favored tax and customs rates.
Furthermore, it is a common misconception that free zone and offshore companies for a business setup in Dubai are more or less the same thing. This is not the case in reality. Evidently, the free zone companies are those onshore business entities that can proceed with their business operations by meeting some set certain criteria.
On the other hand, offshore companies are established with the sole aim of operating outside their registered jurisdiction or primary ownership location.
In Dubai, the free zones are popularly known to deal with general trade, services, and other industrial sectors. In addition to that, some of the free zones in the UAE especially for a business setup in Dubai cater to specific industries and sectors. These essentially include the following:
- Dubai Healthcare City (DHCC) – for the health and wellness industry
- Dubai CommerCity – for the e-commerce industry
- Sharjah Publishing City (SPC) – for the printing and publishing industry
- Dubai Internet City (DIC) – for the tech industry
- Dubai Knowledge Park (DKP) – for the HR and training industry
Are the free zones really tax-friendly for a Business Setup in Dubai?
Notably, Dubai is one of the most progressive and the most prospering emirates. Owing to its “supposedly” tax-free structuring, it is popularly known to attract shopaholics, corporations, and tourists alike. Along with Dubai, none of the other Emirates in the UAE charges any federal tax, though they have all the legal authority to do so.
Moreover, all the Islamic countries are known to forbid the collection of money that is not gained by work or service, which are taxes. Even the property tax is not levied on the citizens of Dubai.
Undoubtedly, Dubai is one of the most popular emirates in the UAE. Owing to this, it doesn’t matter if you are an investor, a businessman, or an entrepreneur, Dubai’s free zones are your ideal hotspot for an offshore company formation.
In addition to that, it offers innumerable and very lucrative corporate industries to explore. Some of the most popular ones include the following:
- Real Estate
- Ship Management
- Yacht Owning
So, why are people rushing to this dynamic city to establish their offshore setups?
That’s essential because of the tax-free jurisdictions in this region which are very lucrative for corporate setups and ventures.
People are considering their options for an offshore company formation in Dubai because of the zero-tax policy. Therefore, all the offshore company setups in the UAE region are completely exempted from paying any taxes.
Furthermore, the UAE is also known to maintain some “double tax agreements” with over 41 nations. This further validates that your offshore company in Dubai will not be taxed twice.
In conclusion, if you are looking for a progressive path to prosperity, then you should explore the opportunity of forming a company in the Dubai Free Zone. Identifying the progressive zone can indeed be a burden, but here at GCC Solutions, we are committed to making the process easier for your business setup in Dubai.
We look after all the necessary protocols and the required pre-approvals that further assist you in getting your business license in an effective and hassle-free manner. Get in touch with our corporate consultants today and explore your path to prosperity in the Dubai Free Zone. We’re waiting to hear from you!