Starting a business in the UAE is a lucrative opportunity that many would not want to miss out on. The business-friendly climate and policies governing the entrepreneurial ventures within the country have shown positive signs of growth and development, indicating to many that the country is an ideal place to start a business.
One of the proactive decisions made by the UAE government is the creation of free zones. Free zones in the UAE are specified regions within the country that specialize in business related activities, sometimes for certain fields of business and commerce. The primary purpose of these free zones is to provide economic benefits to key industries, stimulating business and economic activity that will ultimately benefit the region.
SPC Free Zone is one of the many business setup free zones present in the UAE, and it lends its support to various stakeholders across a multitude of industries. In this article, we explore the perks of setting up a business in a free zone and how it will stand to gain in the long run if set up in a free zone.
1. 100% foreign ownership
One of the major advantages of starting a business in a free zone is the foreign ownership exemption. Most businesses in the UAE require a partnership between the entrepreneur and a local from the country. This split, however, is not applicable in the case of a free zone setup. Businesses here are allowed to have complete foreign ownership, which is great for entrepreneurs who wish to retain most of the decision-making control when it comes to running operations smoothly. There is no need for a local stakeholder or partner.
2. Import and Export Duty Exemptions and Tax Benefits
In order to promote international trade within the country and boost the company’s financial strength, import and export related duties are exempt for businesses set up in a free zone. Moreover, there are massive tax benefits allocated to businesses in free zones. These include 100% tax exclusion on the basis of both corporate as well as income related taxes, which can ease the financial burden of the company significantly.
3. Availability of staff and immigration
Free zone companies can conduct hiring-related tasks with ease through free zone aid. The easy-to-set-up process and cost-effective manner through which recruitment is done can aid companies in cutting down on unnecessary expenses. Moreover, they also allow for entrepreneurs to hire foreign nationals with ease. When it comes to immigration, the process is streamlined as free zones have a direct connection with immigration facilities, thus saving time and resources.
Licensing is by far one of the most important aspects of starting a business. Without it, it would be virtually impossible to legally conduct operations within the country. Free zones provide a multitude of services and perks for licensing in order to facilitate smooth applications.
SPC Free Zone provides a 10-year license option along with a vast catalogue of over 1,500 business activities to choose from. Moreover, they also provide the ability to combine activities from different sectors along with the ability to have a dual (mainland and free zone) license.
5. Other services and perks
Various other services and perks like the absence of international currency regulations, aid in corporate bank account set up, readily available workspaces, zero income or corporate taxation, and financial aid like zero paid-up capital are available for those who choose to start their dream business in a free zone.
Free zones provide a multitude of golden opportunities for businesses who wish to set up their business there. Utilizing these opportunities can be done with the help of our consultants here at SPC Free Zone. Contact us at 800 SPC FZ today to capitalize on the opportunities a free zone set-up will bring to your business.