10 February, 2021
How to Start A Freezone Business Setup In Dubai
Register a company in DubaiEntrepreneurs are attracted to Dubai, and this is quite natural. The consistently high rankings across indices, the logistically strategic location on the world map. Diversity in population ethnicity and the opportunities are enough to attract people to Dubai. As a business owner, setting up your business in Dubai is the first significant step you take into the path for growth and greatness. Naturally, it becomes extremely critical to ensure that your business setup is geared for growth, remains efficient, and most importantly done in a way that is relevant and well suited for your business. So why would there be specific emphasis on a Freezone business setup? And why is it so complicated that different people say different stories about the same product?
Freezone Business Setup In Dubai
In one of our earlier blog columns, we had compared the jurisdictions of “mainland” and “Freezone” and provided the pros and cons of each. You can read our blog column here. To put it simply, it makes your life simple. And you can read our earlier blog column to know how exactly corporate services in Dubai make life easy for you. The main benefit, as you know, is reduced time and effort. To this, add business-critical benefits such as knowledge, expertise, lower chances of error, and a vital opportunity to provide more corporate services under a single roof.
The result is that your Freezone business setup gets supported by an extremely beneficial suite of corporate services in Dubai. To provide a brief insight into the jurisdiction aspect.
Here Are Some Simple Areas Where A Freezone Scores Over A Mainland Business:
- It’s cheaper than a mainland setup. There, we said it.
- The legal framework in a Freezone is different from that of the mainland. For instance, Freezone employment visas come with a validity of three years.
- Free zones act as business hubs and as valuable contact points for quickly entering your products into the market through legal entry points.
- An essential requirement for business setup is to have a local business partner for your business trade license. But in a Freezone business setup, you do not have to follow this mandate.
- This also means that you can have a full 100% ownership of your company.
- You can have the ability to repatriate all of your profits and capital.
- You get a full exemption for personal and capital gains.
- The whole market entry structure is rendered lucrative due to negligible duty on import/export.
- There are absolutely no corporate taxes (Yes, zero taxes).
- Each free zone jurisdiction gives you a complete single window system for accessing all their services (mostly administrative, status updates, etc.) and these are by each licensing authority.
- It is also possible that some business licenses, in comparison to the mainland, may also have loner validity.
- Most of the Freezone business setup executions happen far quicker than mainland business setup.
Why Is There A Need for Corporate Services in Dubai?
An entrepreneur’s most important step is in getting complete satisfaction (and no hassles) in the business setup. This is achieved by appointing a dependable service provider for corporate services in Dubai. The icing on the cake is that even as an entrepreneur who just completed a Freezone business setup, you still need to avail the corporate services in Dubai to gain your initial foothold.
As A Freezone Company Why Do I Need Corporate Support Services?
Any business requires an essential execution of core and ancillary business functions, to logically process as an entity. The core functions are usually executed successfully by every business, as they fall within the competence areas. However, it is the corporate support services that require the expert involvement of such a service provider. The main reason for this need for corporate support services is relatively simple. Freezone business setup by itself is not enough for your business to grow exponentially. It is the optimal and smart utilization of corporate support service providers that help your business.
Some of the corporate support services delivered by these service providers are:
- Outsourced payroll processing
- HR services
- Outsourced marketing services
- Accounting and bookkeeping services
- Administrative services
- Logistics and mail management services
Why Should I Even Consider A Corporate Business Center in Dubai?
One thing is evident in the UAE. Every trade license must necessarily be hosted in an office address. The office space may either be a serviced office dedicated to your business, or a shared office space, allowing co-working. The comparison between these two offerings has been made in detail in our earlier blog column here. While the office may be a part of the Freezone business setup (and within its jurisdiction), it is perfectly acceptable to acquire another operating office within mainland limits.
The benefits of acquiring a mainland office space in a corporate business centre in Dubai far outweigh the negatives, and here are the reasons why:
- Your office space is easily accessible to many businesses.
- An address in Dubai adds to the brand image of your firm.
- A corporate business center in Dubai offers a wide array of intangible benefits.
- Your office space is possibly the place where like-minded business owners are potentially hosting their businesses. This gives you substantial networking opportunities.
A Freezone business setup goes far beyond just obtaining a trade license, and has multiple benefits.
What is a Freezone business setup? A Freezone is a particular economic jurisdiction that allows many business transactions to happen within its ecosystem. Any business that is set up within a Freezone will enable you to transact in an economically efficient manner with other such companies in the same jurisdiction.
If My Business Is in A Freezone, Why Should I Worry About Corporate Services In Dubai?
The answer is simple. Engaging a company for corporate services in Dubai leads to business efficiency and growth
Will Corporate Support Services Be Affected by Mainland or Freezone Jurisdiction?
No. This only works if you are delivering services, not if you are availing services.