Introducing the Dubai Freezone company
Setting up a Dubai Freezone Company, is your quickest and easiest route to corporate and VAT tax exemptions.
Dubai's freezone companies or FTZs, are designated areas within the Emirate that offer expatriate businesspeople with a range of tax exemptions (zero levies anyone?), custom duty concessions, and the ability to set up a 100% foreign-owned subsidiary.
With more than 20 FTZs to choose from and each one having a particular industry or sector of focus, foreign investors have plenty of options to pick from when it comes to setting up a freezone enterprise (FZE) in the region. Some of the main FTZs in Dubai cover industries such as financial services, ICT, media and communications, jewellery, education, transportation, and healthcare, to name a few.
The Dubai International Financial Centre (DIFC), for example, hosts more than 750 companies, some of which are among the largest financial service providers in the world. Similarly, the Dubai Silicon Oasis Authority (DSOA) has been established to serve as a technology park that caters to high tech companies à la Silicon Valley in California. Most importantly, the Dubai Multi Commodities Centre (DMCC) boasts of more than 21,000 companies that have built an expansive commodity market trading in precious stones, oil and gas, metals, and agricultural products.
Do keep in mind that FZEs can only carry out business activities within the FTZ's boundaries or internationally. To carry out business in the UAE, you would have to open a branch of your business in mainland Dubai, a process that is subject to more stringent requirements.
In any case, whatever you're looking for, there will always be an option for you among Dubai's FTZs. Get in touch and we'll guide you in the right direction.
Why register a Freezone company in Dubai
There are a myriad of reasons why you should consider setting up a freezone company in Dubai. Unlike setting up a regular Dubai-based company, FTZs offer you a wealth of other unique benefits:
100% Foreign Ownership Allowed: When you set up a company beyond the borders of an FTZ, you must assign a local partner who will own 51% of the firm. However, within an FTZ, you are allowed to wholly own your company.
Tax Breaks Galore: Any company established in an FTZ will not be subject to import, export or withholding taxes, or any levies on personal income. Plus, you will enjoy of a lengthy corporate tax holiday that may extend to up to 30 years.
Free to Repatriate Your Profits: Your FTZ company will be free to repatriate 100% of its profits and capital without any penalization. Even better, there are no foreign exchange controls and currency restrictions to hamper your work.
An Availability of Visas: Residence visas are offered to all managers, shareholders, and employees of your Dubai freezone company. The number of visas available generally depends on the size of your company's office (if applicable) and its overall operations.
Simple Set-Up Procedure: Setting up your freezone company in Dubai couldn't be easier. We will ensure that the process is quick and clear as possible and your company will be up and running in around 10 working days. Once your new Dubai freezone company is ready, licence can be received within three working days and visas within a month.
Photo by Denys Gromov
Impact of the UAE's new corporate tax rate on Dubai Freezone companies
As you should know by now, starting in June 2023, the UAE's corporate tax rate is going from zero to 9% for companies with a taxable income higher than AED 375,000 or about $102,000.
How will this introduction affect the Dubai freezone companies?
Tax incentives will be maintained in the UAE's freezones so long as these special economic zones comply with all pertinent regulations and companies housed there do not carry out business with the UAE.
These incentives include exemptions on value added tax (VAT), income tax, corporate tax, and customs.
How we can help
Meridian Trust can help you narrow down your choice of Dubai free-trade zone and set up your FZE with nary a glitch.
We will gladly assist you with the following:
- Choosing the best FTZ for your company.
- Picking the correct licence for you.
- Setting a trade name for your company.
- Opening a local or international bank account.
- Setting up your physical, all-serviced office within the FTZ, if applicable. In some cases, companies dealing in services are not required to have a physical presence within the FTZ.
- Completing and submitting the necessary paperwork for you to register your company and seek final approval.
- Applying for your visa and those of your employees and family members, as well as for the UAE Tax Certificate.
- Assisting in the opening of your freezone’s bank account
- Assisting with relocation services for you and your family, if required
- Ensuring that your freezone company is fully compliant with local rules and regulations
- Keeping your company and accounting books and records, updated.
We're here for whatever else is required for you to quickly establish your freezone enterprise and open the doors to your office to the world.
Let's talk! Fill in the form below and schedule your 30 minute free consultation with one of our corporate lawyers, to discuss any questions about registering a freezone company in Dubai.