Everything You Need to Know About the Dubai Free Zones

1. Everything You Need to Know About the Dubai Free Zones Dubai has become a global investment destination over the years because of various reasons. The most significant of which are the free zones. Two critical parameters for entrepreneurs looking towards setting up a business are the ownership and taxation hurdles they might face. The Dubai Government, through several free zones, has kept up with the best interest of foreigners who want to set up base at the Emirate. What is a free zone? To put things clearly, a free zone is a specific economic zone for business owners where they can get 100% ownership of their business and enjoy various exemptions from taxes. If you are a business owner, you will be glad to know that by forming a company in one of these free zones, you would get to keep all the profits accrued, and much more. Standing in 2020, there are more than forty-five free zones in Dubai. These are defined based on their area of operation. Some of them are: 1. Aviation: Two significant aviation initiatives made by the Dubai Government are the Dubai Airport Free Zone (DAFZA) and the Dubai Aviation Citicorp-Dubai World Central (DWC). The former, DAFZA, is also touted as one of the fastest-growing free-zones all over the world. It has around an approximate of 1600 companies. The DWC, on the other hand, deals with housekeeping, registration and licensing, infrastructure, and data centre, among others.

2. 2. Industrial Logistics: The first free zone set up in Dubai, JAFZA, or the Jebel Ali Free Zone is the Dubai Government’s core free zone. Around 120 Fortune 500 companies and an approximate total of 6400 companies are set up in this 21,500,000 square feet zone. The most beneficial part of the zone that attracts entrepreneurs are its tax-free trade and the rapidly evolving business environment. 3. Education: Dubai has two free zones dedicated to education. They are the Dubai International Academic City and the Dubai Knowledge Village. As an Emirate with over 400 education courses and home to students of over 137 different nationalities, the Dubai International Academic City is ideal for those who want to invest in the higher- education area. The latter, on the other hand, is perfect for areas such as human resource management and other allied services.

3. 4. Media: When it comes to media, the first name that comes in the minds is TECOM. With almost 4500 businesses operating in the business park, TECOM is known to be a founding zone for smart cities like the SmartCity Malta. The Dubai Media City and Studio City are a few places where you would find prominent entrepreneurs in the field of advertisement and media. As a global media player, these free zones offer a tax-free income generation and 100% ownership. Some other zones dedicated for media are the Jumeirah Free Zone, International Humanitarian City, Meydan, and the Dubai Health City. 5. Information and Communication Technology: The three most significant areas that fall under these special zones are the Silicon Oasis Authority, Dubai Internet City, and the Dubai Outsource Zone. The Dubai Internet City is also known to be the largest free zone IT setup in the Middle East, where there are business parks, venue management services, and retail and office spaces. The Dubai Outsource Zone is all about outsourcing business setups in a call centre. Finally, the Silicon Oasis Authority is perfect for the technology-driven modern industries like telecoms, data centres, and e-services. 6. Finance: Dubai offers two major free zones when it comes to the finance sector in the form of the Gold & Diamond parks and the Dubai International Financial Center. There is no restriction on the profit repatriation and the capital conversion in these two zones. When it comes to the Dubai International Financial Centre, it is dedicated to connecting with the economies of Europe, Asia, and the USA. The Gold & Diamond parks, on the other hand, are more about fulfilling a jeweller’s dream in the UAE. Benefits of the free zones of Dubai The free zones of Dubai have numerous benefits to offer all enterprises set up in the free zones. A professional who has been offering corporate legal advice in UAE for years now would be able to explain them in detail. The basics of them, nonetheless, are: 1.Exemption from all taxes. 2.Contrary to what the LLC clause states, when you have set up base under the free zones, you get 100% ownership of the enterprise, irrespective of you being a foreigner. 3.Additionally, you can also set up business in the free zones if you are a single individual. 4.Business confidentiality. 5.You have the freedom to opt for more than one business activities. 6.Relaxation in the bank account rules and extremely reasonable renewal fees.

4. Conclusion: A law firm would be able to give you more details regarding the rules and regulations of opening a company in a free zone in Dubai. Yungo is a law firm based in Ras Al Khaimah that has a team specializing in corporate law. The team also provides small business legal advice. Should you want to know more about the subject and get in touch with Yungo, dial +971 (0)7 243 7493. Source: https://yungo-legal-adviser.blogspot.com/2020/03/everything-you- need-to-know-about-dubai.html -------------------------- Yungo Legal Consultant Email ID: info@yungo.ae Phone No.: +971(0)72437493 Visit Us:https://www.yungo.ae/ Stay Connected Via: https://www.facebook.com/yungocorp https://twitter.com/YungoConsulting https://www.linkedin.com/company/13352967 https://www.instagram.com/yungolegal