Dubai is one of the most lucrative and investor-friendly business destinations in the middle east with several tax-free zones. There are around 30 free zones in Dubai offering facilities to set up businesses that are governed by liberalized and business-friendly regulatory provisions.

Free zones in Dubai are special economic zones set up with the objective of offering tax concessions and custom-duty benefits to expatriate investors.

Lets’ understand the basic attributes of a company incorporated in Dubai Freezone-

• Business can be undertaken only within the boundary of the respective free zone;
• Free Zones are mainly for those entities exporting out of Dubai, basically, intended for doing business outside UAE (if the company intends to operate in the Mainland then the applicable license shall be obtained from the Department of Economic Development (DED));
• The minimum capital required differs from Free Zone to Free Zone;
• 100% foreign ownership is permitted;
• No Income Tax/ Corporate Tax (if the business model is outside UAE);
• 100% repatriation of profits & capital.
• Audit of accounts is not mandatory
• Only one member is sufficient to undertake the business

Investors willing to establish a business operation in Dubai Freezone shall select a type of business entity in consonance with the proposed business activity. The categories of business available in Dubai Freezones are mentioned hereinbelow-

1. Free Zone Company (FZ Co.) or Free Zone Limited Liability Company (FZ LLC)
   This type of company can be registered with 1 individual or corporate shareholder.
2. Free Zone Establishment (FZE)
   FZE company can be registered with 2 or more shareholders. A shareholder can be an individual or a company.
3. Branch office
   Any business that has a company in UAE or a foreign land, can open a branch office in the free zone of Dubai.

In case you are looking to set up your business in Dubai, we will be happy to assist you.

Please reach out to us at shweta@indiacp.com or 91-11-40622208.