Before starting the process of setting up a company in Dubai, it’s advisable to work with a specialized agency to ensure all documentation and legal forms are completed correctly. This will avoid potential legal issues. Depending on the type of company and its needs, there are different legal structures for establishing a business in Dubai.
Other types of companies that can be established in Dubai:
- Mainland
- Offshore
Requirements to Become a member:
Before we begin, it’s important to note that to become a partner in a company in Dubai, you must be at least 21 years old. Furthermore, it’s essential to choose the legal structure that best suits your business’s needs to ensure success and legal compliance in the country.
Free Zone or Freezone in Dubai
Free Zones in Dubai are delimited areas that enjoy special tax, customs, and import regulations, distinguishing them from the mainland. These areas are extraterritorial, offering significant advantages for starting a business in Dubai.
Business Opening Process in Free Trade Zones
Opening a company in Dubai is a relatively simple process. The requirements, costs, and timeframe for incorporation depend on the free zone chosen and the business activities the company intends to pursue. In this context, Free Zones are an extremely attractive and popular option among investors.
There are more than 40 registered free zones in Dubai, with an upward trend in the coming years. One of the most notable is the International Free Zone Authority (IFZA), which offers multiple advantages for entrepreneurs.
Tax Advantages and Flexibility in Activities
Unlike other areas in the UAE, free zones allow for the combination of various commercial activities under a single license, offering greater flexibility. The main activities that can be carried out in a Free Zone include:
- Trading Activities
- Consulting
- Holding
Tax Benefits
Companies operating in Freezones enjoy several tax incentives, such as exemption from personal income tax. For companies, the first €90,000 of profits are tax-exempt. Beyond this amount, a 9% tax applies. Furthermore, the Small Business Relief Act establishes that the first €750,000 of revenue will be tax-exempt until December 31, 2026.
Another important benefit is that the UAE has double taxation treaties, which prevent income from being taxed twice in different jurisdictions.
Social Advantages
On a social level, a key advantage is the possibility of obtaining residence and work visas for both employees and the employer’s family members. These visas are renewable indefinitely, unless any issues arise.
Foreign Ownership and International Employees
A notable feature of the Free Zones is that they allow 100% foreign ownership of companies, which represents a significant advantage for international investors. Furthermore, it is possible to hire employees both within and outside the UAE, expanding opportunities for business growth and development.
Conclusion
It’s essential to carefully evaluate which option is best for your business, as each legal structure offers different advantages and benefits. If you have questions or need personalized advice, don’t hesitate to contact us; we’re here to help you make the best decision.
Free Zones play a crucial role in Dubai’s economy, offering an efficient and attractive regulatory structure for foreign investors. With a wide range of tax and social benefits, Free Zones are undoubtedly one of the best options for those looking to establish or expand their business in Dubai.