Free zones are actually geographically distinguished areas that have specifically been established for the purpose of attracting businesses and foreign investments. The fact is that setting up a business in Dubai has never been easy and this has long kept foreign investors away. Upon realizing this, the Government of Dubai dedicated itself to make the business environment more so on the investment friendly side. One of the many initiatives that the government of Dubai took in this regard is that of the establishment of free zones.
Ever since the establishment of free zones in Dubai, the business sector has definitely flourished and foreign investments are at an all-time high. There are multiple reasons behind the sudden rise in business and development of the business sector. Let us take a look at a few of them:
You get to maintain ownership of your business
The reason why businesses are more inclined towards establishing their presence in a free zone is because it makes it possible for them to maintain complete ownership and control of their business. In any other case, it is necessary for business establishments to work with a local Arab sponsor. This may seem really simple on the outlook, but the fact is that the Arab sponsor gets to maintain majority ownership of the business that he is sponsoring. This means that you cannot take major business decisions without getting his approval. On the other hand, having a local sponsor is not a necessity when you consider a business setup in Dubai free zones. As a result, you get to retain complete ownership of your business.
Setup process is easier in free zones
If you set up your business in mainland Dubai, there are a number of legal considerations that require your attention. Things actually tend to work differently in free zones because there are lesser rules and regulations to follow. All you need to do is acquire proper licensing through the right authorities and you are good to get started with your LLC formation in Dubai.
Tax exemptions
The best part about working in a free zone is that you will be exempted from all sorts of taxes. In order to make the free zones more lucrative to foreign investors, the Government of Dubai decided to keep the businesses operating in free zones exempted from taxes.
On the whole, there are countless reasons why you should consider establishing your business in a free zone in Dubai. The best part about it is that those who run their businesses in a free zone get to purchase property and get yourself a bank account as well.