Posted in Business Services

The ins and outs of a free trade zone in Dubai

 

It’s been more than two decades since the government of Dubai decided to establish Free Trade Zones in the Emirate to diversify its economy by promoting foreign investment in different market sectors to minimize its dependency on oil. The Jebel Ali free zone is one of the most popular industrial free zones in Dubai, which was the first free zone that was established in Dubai in year 1985. The success of this initiative can be easily judged by the fact that today there are around two dozen Free Zones in Dubai and the contribution of oil in Dubai’s economy is less than 5% of its total volume. It truth be told, these free zones have played an important role in turning Dubai into one of the most important business hubs in the region. Today, investors from all around the world are considering setup a business in Dubai.

Dubai has established Free Trade Zones to provide unmatched facilities to foreign investors so that they can invest in its developing economy with confidence. Dubai government also offers a number of benefits to those who are willing to invest in Free Trade Zones. Advantages like tax and custom duty relaxations, 100% ownership and minimum restrictions has played an important role in attracting investors successfully.

Once Dubai proved that establishing free zones was a successful step in the right direction, other Emirates also followed its full steps and today you will find a number of free zone in every Emirate of UAE. This is why you will find a number of people interested in Fujairah free zone company registration to step into UAE market.

If you are also considering registering a free zone company in Dubai, then the following pros and cons of setting up a business in them will help you make a well informed decision.

Pros of registering a company in Dubai free zone jurisdiction:

1- One step company registration facility

2- You will enjoy 100% ownership of your business

3- Your business will receive relaxations in tax and duties

4- Minimum restrictions to help you conduct your business smoothly

5- You will not have to look for a UAE national to operate your business

Cons of registering a company in Dubai free zone jurisdiction:

1- You will not be allowed to sell your products in UAE market unless you pay tax and duties

2- You will only be allowed to indulge into business activities allowed by the free zone authority