Guide to Free Zones in Emirates
- Author- Ridhi
- Publish Date-
The Free Zones in Emirates are a bit different from the ones in other countries. Most people associate free zones with low or zero tax rates, but Free Zones in UAE are special in a different way. There are several Free Zones in the UAE and they have different rules and regulations. Let's have a look at the Free Zones in the United Arab Emirates and the rules that govern them. In the following blog, we will describe the Free Zones in the Emirates.
What are free zones in the Emirates?
Free zones are territories that are specially designed and designated to operate as commercial entities independent of the federal and local UAE authorities. These are ideal for setting up businesses as no taxes, customs, and duties are applied to goods produced or sold in the free zone. Companies in the free zone are exempt from federal and local taxes, except for those related to property. These include a real estate tax, a facility management fee, and a service charge.
What are the different free zone options in Emirates?
The United Arab Emirates has several areas that are Free Zones. These all have their own special rules and regulations, and they are all different from each other. Free Zones are areas where different rules apply than the rest of the country. That means that companies, businesses, and individuals have more freedom than they would have in the rest of the UAE.
There are currently 6 Free Zones in the United Arab Emirates; such as; Jebel Ali Free Zone, Dubai Airport Free Zone, Deira Free Zone, Ras Al Khaimah Free Zone, Sharjah Free Zone, and Fujairah Free Zone. These Free Zones are all located in the UAE, so if you are opening a business in one of these areas, you won't have to deal with any customs issues. Each free zone has different rules, so it's best to thoroughly understand each one before deciding where you want to start your business.
Why do Emirates have free trade zones?
To develop various economic sectors and provide investors with a suitable environment, free zones were introduced. The Free Zones are a special economic zone and are usually located in the UAE outside the Emirates. They provide a suitable environment for investors, offering them special incentives. Free zones have been a success in the UAE and have been copied by many countries in the region.
Free zones are areas within the UAE that offer businesses and individuals full or partial exemptions from local taxes and duties. These zones are set up to attract foreign investment and encourage businesses to set up shops in the UAE, which has led to the country's economic boom. The UAE has the largest free zone in the world with over 180 "free zone" companies and 75% of companies based in the UAE are located in the UAE's free zones.
The government has been making efforts to attract foreign investors to the UAE and one way they've done so is by offering a large number of free zones, which are areas within the country that offer businesses and individuals full or partial exemptions from local taxes and duties.
What are the steps to start a business in a free zone?
The UAE has been one of the most open and welcoming business environments in the world. And being a free zone, Dubai has become the most preferential location for businesses all around the world to set up their operations. They are also known as free trade zones.
It is the designated area within a country that is exempt from customs duty, taxes, and other governmental regulations. It helps to promote economic activity and foreign investment. Businesses set up in free zones can avoid the cost of having to pay for the import and export of goods.
You can also start a business in a free zone in the UAE if you have a viable business idea to contribute to the National economy. It is part of the UAE Government’s plan to develop a globally competitive economy. You can establish your business in the United Arab Emirates free zones and benefit from free trade and free capital movement, freedom from corporate and income taxes, and freedom from withholding taxes and duties. The Free Zones in the UAE are a pioneer in the establishment of free trade and free enterprise, contributing to the growth of industries in the UAE and generating a large number of local and international jobs.
The Emirates Free Zone is a special business and industrial area within a country, which is exempt from most of the country's laws and regulations, except those relating to safety, labor, and health. The purpose is to attract additional foreign direct investment and business.
It offers a lot of opportunities for entrepreneurs and for people who want to start their businesses. They include a zero percent tax on corporate income, no or a low tax on capital gains, and freedom from import duties. In addition, free zones are free from the UAE's labor laws and foreign exchange controls. The free zones have no restrictions on nationality or religion; labor is not subject to the UAE's immigration controls, and foreigners can enter and leave the free zones without restriction.