Importance of Starting Your Business in Tax-Free Zones

Importance of Starting Your Business in Tax-Free Zones
Luxury shopping, ultra-modern architecture, attractive city, easy access to the other parts of the
world - all of these reasons make Dubai one of the best places to live in. Not only is Dubai one
of the best places to live in it is also one of the best cities to do business in. Among a wide
range of benefits, it offers zero corporate taxes, great infrastructure, easy access to other parts
of the globe and one of the best things is - Tax-Free Zones. There are a lot of countries that
have tax-free zones, but the best and preferred ones are in Dubai. Some of them are Dubai
Airport Free Zone, Dubai Media City, Dubai Internet City…etc.
The primary purpose of a free zone is to boost international business and bring about more
foreign investment into the region. When investors know their ROI will be high in one particular
area, they are more than happy to invest in these regions. These free zones give the best fertile
grounds for setting up foreign businesses equipped with state-of-the-art infrastructure, duty and
tax exemptions, excellent amenities, adjustable government policies, and unparallel facilities.
The benefits of setting up your business in Tax-Free Zones in Dubai are:
1. The registration process of a company is easier in the tax-free zones:
It is so much easier and faster to register a company in Dubai free zone than on the
mainland. What is typically done in more than five steps is completed in one step when it comes
to setting up a business in the tax-free zone.
2. Tax and duty exemption:
This is probably the most imperative reason to choose a tax-free zone. Benefit from
the 0% corporate and personal tax, your business will also be excused from VAT, which is
currently at 5%, you can also forget about the ​import-export tax​ and trade with no currency
restrictions.
3. No local sponsor required:
Businesses operating in mainland UAE need a local sponsor who will own 51%
shares of the company. It is a mandatory requirement by the government imposed on foreign
companies that operate in mainland UAE. Quite contrary to this, businesses operating in the
tax-free zones do not require a local sponsor. You can enjoy 100% ownership of your company
and enjoy the profits for yourself.
4. Tax-Free Zones have workspaces, warehouses, and factories:
Among the array of facilities already offered tax-free zones provide workspaces,
warehouses, and factories all in the same area where the company is operating from. You will
find customized / pre-designed warehouses and office facilities with the best technology. The
time and money spent on such facilities will be reduced by a considerable margin this way.

5. Infrastructure and Visa facilities:
World-class and ever-improving infrastructure - that is the only way we can define the
tax-free zones in Dubai. Transportation is made so much more comfortable in these areas with
the help of the government. Investors can get their visas for a period of 3 years of them, their
staff, and their families, which can be easily renewed whenever needed.
6. Repatriation of capital and profits:
UAE free zones allow investors to transfer 100% of their ​corporate money​ back to their
home country. Such kind of facility is a massive benefit for any investor.
7. Bank account facility:
Investors will need to secure their investment and focus on other matters rather than
the safety of their money, and for this, there has to be the right banking procedures in the
region. Opening a new bank in a new region is not very easy because of the procedures and
requirements, they vary from one bank to another. Luckily for you, the tax-free zones in UAE
provide ease to open bank accounts. You can perform your daily monetary activities with ease
and comfort.
If you are looking at ​setting up your business online in a tax-free zone​ in the UAE, DAFZA is
one of the very best options you can consider. DAFZA is one of the most prestigious and
advanced free zones in Dubai. They provide an ideal base to do business in the middle east by
providing a business-friendly environment, world-class infrastructure, tax exemptions, full
repatriation of earnings, total ownership, and exceptional facilities. Strategically located next to
the Dubai International Airport, they boast rapid clearance and fast processing of paperwork to
maximize business activity and efficiency.