Free Zones are best for your small business in UAE, it’s important to understand what a Free Zone is and the purpose they seek to serve.
What are Free Zones?
Free zones can broadly be defined as geographical areas within a country (in this case UAE), where commercial activities relating to goods, services, as well as commodities are traded with lax regulations and are dedicated to a particular industry or industries. Their main purpose is to support key industries and enable their development for the benefit of the entrepreneur and the country.
Currently there are close to 45 Free Zones in the UAE. They are focused on the strategic development of different sectors benefitting all small businesses that choose to have their business set up in a free zone.
With an understanding of Free Zones, the reasons stated below to starting a small business in these zones will make it all the more lucrative for start-ups and the like to begin their business journey in a chosen zone.
1. Ease of Financial Transactions
Financial transactions are made easy since currency regulations imposed on the transaction of foreign exchange do not apply to businesses in the UAE Free Zones. In the case of SPC Free Zone, this alongside the non-requirement of paid-up share capital makes it a lucrative option to small businesses and other startups that face a lack of capital.
2. Tax Benefits
Another big reason for choosing a free zone is the little to no taxation and other regulations imposed on the business. Free zones offer businesses the advantage of low corporate and income tax rates, alongside import and export duty exemptions, which is a feature that is solely exclusive to free zones.
3. Foreign Ownership
It is known that most businesses set up within the UAE are done so by expatriates from other countries. Free zones have recognized this and have consequently offered 100% foreign ownership, that means that the business set-up can be solely owned by the expat without the need for a local sponsor.
4. Licensing
Free zones provide the required licensing needed to conduct business with relative ease, thus making it a feasible and hassle-free process to start the business of your dreams. Starting a small business with SPC Free Zone comes with a multitude of options for licensing including an option to create a 10-year license, over 1,500 business license activities as well as the ability to have a dual license that benefits your business activities both in the mainland as well as the free zone.
5. Multitude of Aid
Whether it be recruitment of required labor or the setup of a corporate bank account, the services provided by free zones are vast and any issues faced by a business setup can be mitigated with the help of a free zone. SPC Free Zone houses everything an entrepreneur would need under one roof and has recently partnered with Saeed Center to help business owners find investors more easily.
Understanding of the Free zone along with the benefits that are provided to a small business are very crucial in the decision-making process related to the location of your new business. Opportunities like these should be capitalized upon and so a business setup in a free zone is the best business choice you could make in your entrepreneurial journey.
