Companies all around the globe are rethinking their strategy in order to survive and defeat Covid-19. Entering a new market may not seem to be an obvious choice at first, especially when organizations are combing overheads for cost-cutting opportunities. Businesses, more than ever, must feed their minds and evaluate all choices, even if they look daring or unattainable in hindsight. If you keep doing what you’ve always done, you’ll keep getting what you’ve always received – if you’re fortunate. The corporate world is evolving, therefore if your company has the financial resources to grow into a new market, Dubai should be on your radar.
Doing business in UAE necessitates obtaining the appropriate business license in the appropriate jurisdiction, as well as engaging in the appropriate commercial operations. Many of the business licenses are obtained according to the nature of the business activity.
What are the advantages of establishing a business in the UAE free zone?
Incorporation at a low cost – in order to attract foreign investment, many free zones have slashed their fees and promoted special deals in recent months. The best moment to expand your business in UAE free zones is right now.
The incorporation is fast. Although the time it takes to incorporate varies per free zone, your company may be up and running in a couple of days. You can choose between two options for structures: a Limited Liability Company (LLC) or a foreign branch. 100% foreign ownership is permitted (you may own your company entirely without the requirement for a local sponsor, which is required for mainland enterprises) and there are no corporate tax and no income tax. This is usually a big plus for international investors. Importers and exporters will appreciate the absence of customs duties. However, if items are transported from the UAE free zone to the Dubai mainland, duty is charged at a rate of 5%.
Each free zone is governed individually, with independent rules, while certain restrictions may be comparable to those on the Dubai mainland. Generally, profit and capital repatriation are permitted. Paid-up share capital is not necessary – this varies per free zone, although not all free zones require the deposit of the share capital amount. There are no physical office requirements; nevertheless, depending on your organization’s needs, a particular license, and the number of visas needed, this may be necessary.
You will have the ability to form holding corporations. A wide range of business operations is available, including industrial, commercial, healthcare, professional services, and many others. Of course, another important benefit is the possibility to apply for UAE visas, allowing you to hire international or local personnel to help grow your company or even relocate to Dubai and run the operation yourself!
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Are the UAE free zones successful?
The UAE free zones’ trade volume increased by 2.1 percent to AED 621.3 billion in 2019, accounting for 53.3 percent of the UAE’s non-oil commerce. This is enormous! While the UAE is recognized for its vast hydrocarbon reserves, it has made significant investments in diversifying its economy, notably in Dubai, which is famed for tourism and hospitality among other things. Dubai features many free zones, some of which are industry-specific, such as Dubai Healthcare City, Dubai Media City, and Dubai Design District, and others that are more general and attract enterprises from all industries.
Why is Dubai so popular right now?
Dubai reacted promptly to COVID-19, both in terms of giving economic stimulus to keep its economy afloat and in terms of controlling the virus via lockdowns so that companies could reopen as soon as feasible, securely. At a time when the globe is changing dramatically, Dubai is still an amazing place to start a company. Despite Covid-19 pandemics, Dubai is one of the most robust economies in the world. And, as many economists and financial experts insist, it is one of the safest and most tax-competitive economies in the world. It is the international economic center and regional crossroad, with world-class infrastructure. You will enjoy well-kept highways, good public transportation, contemporary business buildings, cutting-edge conference and event facilities, and hotels to suit all budgets. As air-traffic hubs, Dubai and Abu Dhabi are just a few hours away from all major cities in Europe, Africa, and Asia, providing excellent connections to virtually every corner of the world.
Dubai is a forward-thinking metropolis, as seen by its economic growth over the previous two decades and beyond. As the knowledge and innovation hub – Dubai has positioned itself as a forward-thinking destination with the goal of continually evolving and inventing to remain ahead of the game. It’s simple to recruit and sell great talent. For ease of doing business, it ranks 16th overall and first regionally (Ease of Doing Business Report 2020). Right now, we are confident that there is no better place to start or expand your business, than Dubai.
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