The benefits of a free zone company setup

For those who don’t know, free zones are basically geographical areas within Dubai and the UAE in which businesses can be conducted and goods and services can be sold without the  owners having to deal with strict customs and rules and regulations. In order to encourage foreign investments, the Government of Dubai has fully exempted business operating within the free zones from all sorts of taxes.

More than 38 free zones in Dubai as of yet. The development was intended to attract foreign investments and needless to say Dubai has managed to do so rather well. Striving for a Dubai offshore company formation can prove to be rather beneficial. It is because of these benefits that companies from different parts of the world have established their presence in one of the many seasons found within Dubai. Freezones are particularly the best option for companies that are just starting out. To remind you, free zones are basically geographically distinguished areas in which the rules and regulations of running a business vary greatly from those that are applied on functioning from within the mainland of Dubai. The businesses functioning within free zones of Dubai are considered as being foreign businesses or companies and businesses operating outside the UAE.


There are a number of incentives that offered to businesses that established themselves within Dubai free zones. Here is a look into a few benefits that you will be able to gain by opting for an freezone company formation in dubai:

Complete ownership of your business

In case you don’t know, if you wish to establish your business in mainland Dubai, it is necessary for you to work with a local Arab sponsor. While this may seem something really simple you would definitely be taken back when you learn that the local sponsor will be the 51% partner of your business without even making a penny’s worth of investment. Things are the exact opposite for companies operating within a free zone. When you set up a business in a free zone, it is possible for you to maintain complete ownership of your company which is a major reason why a lot of companies choose to establish themselves in the free zones instead of main land Dubai.

Tax exemptions

The benefit that establishing your business in a free zone of Dubai has to offer is that you will be accepted from all sorts of taxes. From the capital gain tax to personal income tax, there is literally nothing for you to worry about in this regard.

Faster licensing options

Every single free zone that operates within Dubai has its own individual licensing authority. Unlike the licensing authorities that focus on businesses in the mainland, the ones serving free zones operate a lot quickly.