Benefits of forming a Free Zone company in Dubai

Realtime Auditors and Business setup consultants in Dubai are the industry leader in business advisory and company formation in the UAE for over 5+ years. We make the process of Freezone company formation in Dubai as quick, easy and clear as possible. Our friendly team of experts will guide you through every step.
Realtime Business Consultants offers expert and personalized business setup advisory service in Dubai that gives clear direction and guidance to offshore investors and business owners who want to set up their operations in the United Arab Emirates, whether onshore or offshore company formation.

The reason organizations find the Free Zone company formation model attractive is to easily and frictionless way of doing business beyond borders, especially if your customer base is in the Middle East or especially UAE. While each area has pros and cons to attract people for company formation in the UAE, each Free Zone enjoys the following rewards for prospective clients:
• 100% foreign ownership
• 100% repatriation of capital and profits
• 100% import and export tax exemption
• 100% exemption from income and corporate taxes
• Access to a wider pool of talent from around the world.
• Flexible business setup options including sole proprietorship, limited liability company, and branch offices.
• Customized infrastructure and facilities.
If you’re interested in the DMCC, you will get to enjoy a 50-year tax holiday for personal and income taxes upon registering there.
The main benefits of Free zone company formation in UAE are below:
Complete foreign ownership – One of the most evident benefits of forming a free zone company in UAE is that complete foreign ownership is possible without the need of local sponsor whatsoever. This means that the foreign investor doesn’t need to find a UAE national sponsor for company formation. Foreign ownership is possible regardless of the nationality of the investor.
No currency regulations – Currency regulations are imposed by the UAE government on the transaction of foreign currencies. There are no currency regulations of any kind in the UAE free zones. This makes financial transactions easier and attracts more investors from Europe or other countries where tax is high.
Import and Export duty exemption – Import and Export duties are not applicable to the free zone jurisdictions or the Freezone companies in the UAE. This helps in promoting international trade and attracts more foreign investors to come and do business in the UAE.
Tax benefits – 100% tax exclusion is applicable for free zone companies. This includes income tax and corporate tax which is a hug plus point to open a company in the freezone.
Smooth labor recruitment – the Free zone companies can conduct labour recruitment formalities easily and in a cost-effective manner. The companies are allowed to recruit foreign nationals but the hidden fees for these types of activities are to look for in advance as they might surprise you in future.
Readily available workspaces – Warehouses and office spaces are easily available in Free zone jurisdictions for startups and freelancers or any other type of individual or company. UAE free zones are ideal for SMEs and start-ups who are looking to step their foot in the UAE market and attract more customers.
Ease of company Incorporation –The free zone company incorporation procedures and process or document requirements are simple and straight forward. You may accomplish the licensing procedures in a smaller number of days compared to other jurisdictions but still it varies on the availability of documentation and many other factors.
Trouble-free immigration procedures – Immigration facilities connected with UAE Free zones are efficient and therefore save time if you have all the required documents available at hand.
Excellent communication and infrastructure – UAE-free zones have the most updated communication systems with amazing infrastructure.
Apart from the benefits we will also explain some of the cons associated with forming a freezone company in Dubai:
o Restrictions connected with UAE mainland trade – Direct trading with UAE local market is strictly prohibited for companies established in the UAE Free zone jurisdictions.
o Business activity related restriction – There are also certain restrictions connected with the type of business activity. UAE free zones are assigned with certain business activities or a group of business activities.
o Work location related restriction – If an employee holds a Free zone company visa, the employee is required to pursue the work within the boundaries of the Free zone.
o Costly formalities – The company formation and translation expenses associated with a Free zone is a costly affair compared to the mainland.
Some of the freezones that Dubai has are below:

  • Dubai Airport Free zone
  • Dubai South Free zone
  • Dubai Media City
  • Jebel Ali Free zone is popularly known as JAFZA
  • Dubai Gold and Diamond Park
  • Dubai Internet City
  • Dubai Media City
  • Dubai Production City
  • Dubai Studio City
  • Dubai Outsource City
  • Dubai Knowledge Park
  • Dubai International Academic City
  • Dubai Science Park
  • Dubai Design District
  • Dubai Multi Commodities Centre (DMCC)
    Four simple steps are required for freezone company formation in dubai:
  1. Decide on your licence type and business activities
  2. Submit your online application
    Next, pay the registration and licence fees and sign the legal documents.
  4. Choose your suitable office location
    Finally, sign and submit the relevant documents for your new office space.
    Note: The specific requirements and procedures may vary depending on the free trade zone and type of business
    Documents Required for freezone company formation:
  • Online pre-approval application form
  • Proof of residential address in country of residence
  • Third-party approvals for certain regulated business activities
  • Copy of your passport
  • Details of an office address in any freezone which will be required after company is registered

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