There are countless benefits that foreign companies can reap by setting up a business in Dubai. However, before getting started, such companies need to determine whether they want to establish their business in one of the free zones, or if they are interested in registering a mainland company that can operate across Dubai. For international companies, establishing their presence through a freezone company formation Dubai is highly recommended for the advantages that this has to offer. If truth be told, free zones were actually created to attract foreign investment, which adds to the reasons why this option should be considered.
Benefits of forming a company in Dubai freezones
A major reason why foreign investors choose to set up their business in one of the free zones is that it allows them to retain 100% ownership. Setting up a business in other parts of Dubai deems it necessary for them to have a local sponsor who will own majority (51%) of the business. On the other hand, foreign investors can only own 49% of the business. For this reason, more and more foreign businesses are showing an interest in setting up in the free zones.
Another benefits that the freezone has to offer is that of tax exemption. Businesses that are set up in these zones are not required to pay any taxes for about 10 to 15 years. Once this period is over, the tax exemption can be renewed for several more years. Apart from that, employees within these zones do not have to pay personal income taxes as well.
Before setting up a business, it is necessary for owners to ensure that they are establishing themselves in a positive environment. If anything, starting a business in Dubai is highly recommended as the economy is growing by the day. Not only is it very easy for a business to operate there, it is rather cost-effective as well. Also, in terms of developing the free zones, the government of Dubai is rather proactive in making them the best hubs for business across UAE. Most importantly, it is extremely easy for businesses to find manpower within Dubai. Not only are there highly skilled and hard-working locals for you to choose from, there are many foreign workers as well.
To sum it up, there are countless reasons why foreign companies should consider setting up their business in Dubai. However, it is necessary for such businesses to ensure that they choose the right free zone to get started in.