We will highlight the advantages of doing business in UAE free zones in this feature, before we start we will talk about a free zone in general. For the benefit of those who have faint or no idea about a free zone, we need to discuss the very basics.
The idea behind a free economic zone is to promote business activity in the designated region by offering incentives to the business owners, like very little or no taxation. This initiative attracts foreign direct investment, thousands of jobs are created, ancillary industries are supported, new technology and knowledge is transferred to the host.
There are more than 20,000 companies in UAE free zones. Out of the 21 free zones in the UAE, the Ajman free zone has about 14,000 companies. Some of the other free zones of UAE are Jebel Ali free zone, Dubai airport free zone, Dubai media city, Ras Al Khaimah free zone, Dubai silicon oasis, Sharjah airport international free zone, Dubai internet city.
The major advantages of starting a business in UAE free zones are (i) 100 % foreign ownership of the company permitted, (ii) 100 % import and export tax exemptions, (iii) 100% repatriation of capital and profits, (iv) personal income tax is nil, (v) there is no corporate tax for 15 years, this can be renewed for 15 additional years, (vi) assistance in workforce recruitment is provided, (vii) there is abundant, inexpensive energy available, (viii) permission to operate 24 hours a day, (ix) assistance is provided for services like housing and sponsorship (if required).
All these advantages make setting up a free zone establishment in UAE easy and attractive for organisations and companies. Axiom-Mark has helped several organizations in setting up their business in the UAE free zones. Our thorough knowledge and experience of the procedures and paper work helps companies start their business faster and with complete adherence to the requirements of the free trade zone authority.