More and more people all over the world are now interested in doing some sort of business. Conducting a business has become easier and simpler and does not require more steps nowadays. The government of the United Arab Emirates understood this and also took into consideration the benefits of bringing business into the country. With all these thoughts in mind, the government of UAE developed a number of jurisdictions called Free Zones which provide a conducive business environment for any business.
Let us first understand about Free Zone
What is a Free Zone?
A free zone is a geographic zone that provides financial benefits and other benefits and also provides various tax exemptions. These free zones are especially beneficial for businesses coming in from outside the country. The benefits of the free zone coupled with the strategic location of the United Arab Emirates make it one of the best places for setting up a business.
Benefits of Setting up a Business in UAE Free Zone
As per Wikipedia, there are 45 Free Zone currently in the United Arab Emirates with many under construction. These free zones are spread out in all the different emirates and thus can cater to the needs and requirements of all the businesses. The management just has to choose which emirate will be most beneficial for them.
Here are some of the benefits of setting up a business in the Free Zone:
Complete Ownership of Your Company
In a free zone, it is possible to have complete ownership of your business by a foreign national. There is no requirement for a UAE national sponsor. With the new legislation, this has been also made possible in the mainland but there are certain specifications that need to be maintained, thus it is not for all the businesses.
No restrictions on the basis of Currency
In order to make financial transactions easier, the free zones have no currency restrictions. This means that the different businesses face no problems during transactions.
Exemptions on the import or Export of Resources and Raw Materials
The businesses which have been established in a Free Zone can take advantage of exceptions in the Import and Export of resources and Raw materials. This will move will make setting up a free zone very beneficial for companies as well as it will promote international trade among various countries.
Complete repatriations of Capital Employed and Profits Made
If the management of a business wants to bring back the profits or part of the capital to its own jurisdiction then it is possible in a Free Zone.
Easy recruitment in terms of Labour
The companies which are established in the UAE have access to skilled labour and can conduct recruitment drives in a cost-effective manner. The diverse population present in the Middle East helps a business having a varied perspective on business.
Simplified Incorporation Process
Establishing a business in the Free Zone is a very simplified process. The management of the Free Zone will provide assistance in the formation of the business and will also provide assistance in various other services for the business.
After the incorporation of a business, it is necessary that the management of the business prepares and maintains the various business documents and conducts the audit of the business from time to time. The management should also take care of the Value Added Tax and other related services of the business.
If you are looking for such services in the United Arab Emirates or are looking for assistance regarding any business-related services then you can go through the services provided by JAXA Chartered Accountants. The experts at JAXA provide various services such as Accounting Services, Auditing services, VAT and Tax related services. Feel free to go through our services and for more details Contact Us. We will be happy to help you in your business journey.