Are you considering growing your business or starting a new one in Dubai? If so, consider getting a free zone visa. This introduction will highlight the significant perks of securing a free zone visa, from tax exemptions to the freedom of running your business in Dubai. Just what are the free zone benefits, and what do they entail? We are here to simplify this by answering your question, “What Are Free Zone Benefits in Dubai?”.
Moreover, it’s designed to pique your curiosity about the different types of free zone visas and what it takes to get one. The prospect of these significant financial benefits and business liberty will surely stir your interest. Lastly, we encourage you to continue reading to understand how a free zone visa can be your ticket to business triumph in Dubai.
A free zone visa is a special kind of residence permit. The General Directorate of Residency and Foreigners Affairs (GDRFA) issues it to individuals associated with most free zones or companies operating within the UAE’s free zones.
These visas are typically tied to a licensing package. You can apply for one if you’re an entrepreneur, business owner, employee, dependent, or domestic staff.
But remember, as a free zone visa holder, you’re only allowed to work within the free zones.
You’ll mainly find two types of free zone visas in the UAE. The first is the investor visa, which entrepreneurs usually seek when setting up a business in a free zone. This visa is generally valid for three years.
The second type is the employment visa. It’s sponsored by an employer and linked to a specific job within the UAE. Like the investor visa, it’s also typically valid for three years.
If you hold either of these visas, you can apply for dependent visas for your spouse, children, or domestic staff.
Getting a free zone visa usually takes between two to three weeks. Entry permits are issued within 15 days. You’ll typically get the visa within a week of receiving your medical test results.
It’s important to note that these visas’ validity has recently been reduced from three years to two. However, visas that have already been issued will stay valid for three years.
The cost of a free zone visa application can reach up to AED 5,000. This doesn’t include the fees associated with additional visas for dependents or employees.
A free zone visa comes with many benefits. With certain tax exemptions, it lets you live and work freely in Dubai.
This means that besides benefiting from the UAE’s 0% tax rate on personal and corporate income, you’re exempt from paying import, export, and customs taxes.
You can also open financial and banking products in the emirate, lease premises, access healthcare, and apply for a UAE driving licence.
What’s more, if you hold a Dubai-free zone visa, you can travel visa-free to several countries around the world.
Establishing a venture in a Dubai-free zone is a hassle-free process with minimal documentation. It makes it an attractive choice for foreign businesses aiming to develop a presence or business activity in the region.
Over 30 free zones are available in Dubai, each catering to specific sectors. A variety of free zone company formation and business structures are available, such as Free Zone Limited Liability Company (FZ LLC), Free Zone Company (FZ Co.), and Free Zone Establishment (FZE).
The capital requirement varies across free zones. Some do not mandate a minimum capital requirement. In contrast, others necessitate a certain amount of paid-up capital for different company types.
A significant advantage of Dubai’s free zones is the 100% foreign ownership provision, a significant attraction for overseas businesses, as it provides total control over their operations.
Dubai pioneered such lucrative concessions and investment incentives to foreign businesses, making it a preferred destination for global companies.
The import and export procedures in Dubai’s free zones are streamlined, making it an ideal hub for businesses engaged in international trade. There are no customs duties on goods imported or exported from or to the global free zone authority in the UAE, and goods can be stored indefinitely.
A valid free zone visa and registration with the Customs Department are needed to become an importer. The export procedures are equally straightforward, contributing significantly to global trade.
Dubai’s strategic location and its free zones’ proximity to major airports and ports make it an ideal gateway to international markets. Companies registered under a free zone visa can enhance their economic activities, such as trading and shipping goods, by leveraging the benefits of the free trade zones and zone jurisdictions.
The Dubai International Financial Centre is a free zone authority recognized as the leading financial centre in the Middle East, Africa, and South Asia region. It offers access to laws and courts based on English Common Law, distinguishing it from other free zones in the UAE.
This access to international markets and a robust legal framework make Dubai’s free zones an attractive option for businesses aiming for global expansion.
Securing a free zone visa in the UAE paves the way for substantial financial gains. These incentives are tailored to draw foreign investors and entrepreneurs, enhancing the UAE’s appeal as a business hub.
The UAE’s competitive tax regime is globally recognized, with one of the lowest corporate taxes. As a free zone visa holder, you’re exempt from paying any form of import, import and export businesses or personal taxes.
This exemption extends to corporate taxes for a specific period, which you can renew later. Even with introducing a 9% corporate tax from June 2023, the UAE will still be among the countries with the lowest corporate taxes.
All free zone companies are completely exempt from corporate tax for 15 years, and you can renew this exemption for an additional 15 years. The only widespread tax in the UAE is VAT, which is relatively low at 5%.
Another financial perk of a free zone visa in the UAE is the absence of currency restrictions. This means you can transfer funds without incurring a fee, making international business transactions a breeze.
You’re also allowed to repatriate capital and profits, which can be a significant benefit if you’re a foreign investor.
Setting up a business in a UAE-free zone can be more cost-effective than in other regions. You can lease office space and other premises based on your specific needs. The benefit of long-term leasing options can extend up to 25 years.
Free zones offer a variety of workspace options, ranging from coworking desks and private offices to warehouses, factories, and land for development. Many free zone operations also provide on-site leisure facilities and staff accommodation, which can further decrease your operational costs.
Once your business is up and running, free zones offer a range of business support services. These include visa assistance, other government administration, mail handling, telecoms, etc. These services help streamline your operations, allowing you to focus on growing your business.
Moreover, thanks to the UAE’s law passed in 2018, foreign investors and entrepreneurs like you can gain 100% ownership of their businesses without needing an Emirati shareholder. This means you can retain full control of your business, which can be a significant advantage when seeking funding and grants.
Relocating to a foreign land can be daunting, filled with hurdles and unknowns. However, possessing a free zone visa in Dubai can significantly ease this transition. Let’s delve into how this is possible.
Upon your arrival in Dubai, the language may be challenging. Although English is commonly used, Arabic remains the official language.
Fear not; a free zone visa allows you to enrol in language classes to master Arabic. This enhances your communication abilities and immerses you in the local culture.
Dubai is a metropolis abundant in culture and tradition. For newcomers, adapting to these customs can be complex.
However, you gain access to cultural orientation programmes with a free zone visa. These initiatives assist you in comprehending and respecting the local customs, facilitating your assimilation into society.
Dubai is renowned for its elevated standard of living, which can be a significant shift for many. However, the free zone visa comes with certain financial advantages.
For example, you are exempt from personal income tax, which can balance the cost of living. Additionally, you can repatriate capital and profits, providing you with more financial freedom.
Lastly, the free zone visa allows you to utilise local resources. These free zone benefits include access to a proficient workforce, cutting-edge infrastructure, and a robust business environment.
Whether you’re contemplating starting a business or want to maximise your stay in Dubai, these resources can be priceless.
In essence, a free zone visa in Dubai is a catalyst for setting up and expanding your business activities in the UAE. It provides unprecedented financial gains, a simplified business starting process, and unparalleled operations freedom.
Coupled with advantages like tax exemptions, no currency restrictions, lower company setup costs, and access to significant funding, the free zone visa becomes a compelling proposition for entrepreneurs and investors alike.
With a free zone visa, you don’t just gain a permit to work in Dubai – you acquire a gateway to vast opportunities, resources, and benefits. Taking the leap to get a free zone visa could be the best decision for your professional journey in the UAE. Make your move today and tap into the power of global business in Dubai’s vibrant free zone company and zones.