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The idea behind the creation of “free zones” globally is to build a model which encourages economic activity. It means the provision of key benefits, so that entrepreneurs and multinational firms establish and freely conduct business in freezone. Dubai free zones are the most favorable locations in the Middle East for international business operations.
They offer complete ownership to a foreign investor, zero taxation and customs privileges. Also, they are unlike mainland’s strict regulatory requirements for businesses, such as appointment of UAE national local sponsor. Dubai free zones’ policies and time-frame for new business setup is a way quicker as documentation work are minimal.
There is no need to appoint local service agent to obtain license. The company setup in the free trade zone areas is not subject to the UAE Commercial Companies Law. Dubai freezone companies operate under the rules and regulations of respective free zone authority.
These are some of the major types of free zone companies in Dubai and across the UAE.
Dubai houses more than 20 free zones. Each Free Zone registers companies according to its own line of business and each one of them has a different set of requirements, cost and legal structure. Selecting the right jurisdiction depends on short term and long term objective of the business and cost difference.
There are various incentives that free zones in Dubai provide for license holders. For example, Dubai Airport Free zone is allowing dual license for its investors. Free zone authorities in Dubai provide these types of licenses for free zone business setup.
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