For starters who wants to set up a business in dubai, the most favoured place are free zones. There are a number of advantages while setting up a business in a free zone. A set of predefined activities which are allowed in a free zones. Based on the business activity of a company in Dubai if in a free zone requires a licence. Free zone Ajman is also favourable among investors in the UAE. As a result, the inflow of business has also increased, setting up more and more free zone companies in Ajman. There are a number of new free zones getting established in the UAE and in coming years you might witness a rise in the number of free zone. This is more focused on increasing the number of foreign investors to UAE thereby contributing to the overall growth of the country.
Most of the business population who are an investor, an entrepreneur rely on 3 different entities to form an organization in the Dubai freezone. They are FZE (Free Zone Establishment), FZC (Free Zone Company) and a branch office. There are numerous benefits in setting up a business in a freezone. As discussed earlier it is ideal for foreign investors giving 100% ownership. It provides 0% corporate tax. The freezone also provides an additional advantage of exemption in various contexts such as exemption in customs duties, value added tax(VAT), import and export tax. They also avail a foreign investor with increasing the number of foreign employees. And this helps an investor to accommodate more employees to have a multicultural environment in an organization. Another highlight of freezone is that they are sector-specific which makes it easy for an investor to choose their hub of knowledge.
As for UAE, the business environment has always been giving away an abundance of opportunities for native investors and more favourable for foreign too. Not only for investors, cooperations, entrepreneurs and startups. According to the reports from Dubai free zone council in 2018, approximately 31.9% of Dubai’s GDP was contributed from Dubai free zones. The free zones are set up basically designed to boost the emirate economy and to increase international business opportunities in the UAE. It is provided with a single window administration convenience which makes it beneficial for the new investors.