Four Benefits Foreign Investors Can Reap by Setting Up a Company in Dubai Free Zones

Among the benefits that foreign investors enjoy when considering company formation in Dubai Free zones are 100% foreign ownership, tax exemptions, and the ability to repatriate 100 percent of their profits and capital. In addition, they can collaborate with other companies and benefit from a friendly business environment. To learn more, read on! You will be glad you did! So, start building your business and make it successful in Dubai.

Tax exemptions:

The UAE’s tax regime is a mix of tax breaks and exemptions. Most free zones offer corporate tax breaks and exemptions. These are usually temporary and renewable and apply to most entities registered in the UAE. The UAE’s dual licensing scheme may also be affected. In addition, businesses incorporated in a free zone are not required to file corporate tax returns in the country.

100% ownership by foreign investors:

When it comes to business setup in the UAE, 100% foreign ownership is now allowed for most companies. While the UAE has traditionally required a local to sponsor the company, which would hold 51% of its shares, the new law will allow 100% foreign ownership for certain companies. In addition, 122 industries and sectors can now be established in the UAE, except those whose primary purpose is to attract foreign direct investment.

Investment protection:

The UAE offers several benefits to foreign investors looking to establish a company. These include tax concessions, national treatment, freedom of financial transfer, and international law standards on expropriation and arbitration. However, the GCC has legal ambiguity that may pose obstacles to investment and trade. Moreover, political and social unrest may influence a country’s investment climate.

Business environment:

The UAE’s free zones are a remarkably attractive business environment. These business hubs provide a unique mix of tax breaks and simplified workforce processes to help foreign investors establish and grow their businesses. Free zones also enable expatriates and foreign investors to own 100% of their businesses. As a result, business owners can expect a smooth workflow and significant savings in time.

Previously, only 100 percent of foreign-owned companies could be registered outside the free zones. Now, these companies can register onshore without involving a local partner. With the new ownership law, there will be no requirement for foreign companies to transfer the majority of ownership to a local company. Alternatively, a foreign company may register as a sole proprietorship or a joint venture. A new ownership law is expected to be approved by the end of the year.