In UAE, the Company Formation In Free Zone are considered as a boon for investors as they offer a catena of benefits to boost international businesses. While working in these free zones, the foreign investors have the privilege to possess complete ownership (100% ownership) and various tax exemptions. Presently, more than 50 free zones are located in various parts of the country.
What is a free zone?
A Freezone is a selective demarcated geographical area that enjoys various business incentives and the laws applicable to these areas are normally different to the jurisdiction in which it is based. The main objective of setting up a freezone is to encourage the development of a business, boost foreign investment, increase employment and diversify the economy.
Each free zone is established by a specific decree and it has its own licensing authority and corporate regulator. Further, they are governed by different sets of rules and regulations. The entities working in the UAE free zones are not allowed to operate commercially on the UAE mainland.
Major benefits of setting up a company in Freezone are as follows-
Procedure to set up a company in free zone