The UAE is well-known in the world of business as an attractive destination that combines a diversified economy, well-developed infrastructure, transport connections, and an attractive tax regime. Despite the fact that a corporate tax of 9% was introduced in June 2023, it is not applicable everywhere, and you can still enjoy tax exemption. You will join a business community in a forward-thinking country that constantly adapts its legal framework to attract new investors and residents and manages to grow its GDP by 50% even in times of crisis.
You can register an offshore company in the UAE or choose one of its numerous free zones. In this article, we are going to discuss the possibility of forming an onshore freezone company and the advantages of this decision. If you need to save on costs, please read how to get the cheapest free zone license in the UAE on our portal.
Follow the link to find much more information on the topic. Our portal is a place where you can find not only a lot of articles on company formation, bank account opening, and investments in foreign countries but also ask qualified specialists for clarification and book a personal session with them. We help individuals and future entrepreneurs make informed decisions and resolve all administrative issues hassle-free.
Why Opt For the UAE?
Choosing a jurisdiction for your business is a matter of priorities. Let’s see how well your priorities match the advantages that the country has to offer:
- Strong economy. The UAE has a stable financial situation that contributes to a high foreign capital inflow to the country. Companies from all corners of the world decide to relocate their headquarters here, and you will find many multi-million dollar corporations here.
- Laws. The UAE has reconsidered its legal framework to attract more foreign capital: the laws applicable to foreign entrepreneurs are different, except for the criminal ones. The local authorities have minimized the red tape and barriers to obtaining a license and company registration.
- Infrastructure. The UAE government did its best to ensure the infrastructure that foreign entrepreneurs and investors would appreciate. And it excelled in it, so you can take advantage of high-quality business parks, warehouses, and connectivity.
- Workforce. If you are going to employ local employees, you are sure to find a lot of highly-skilled professionals who flock to this bustling business environment looking for a job.
- Favorable taxes. Free zones are specially designed to help businesses minimize their taxes, so you are welcome to register your company here.
- Business ownership. You probably know that typical business laws would require a foreigner to own 49% of the business, with 51% being owned by a local partner. However, the UAE has eliminated this barrier: 100% foreign ownership is allowed.
- Global position. Did you know that the UAE is ahead of European countries according to the “Doing Business” report? It means that the conditions created for entrepreneurs are as favorable as is practically possible.
- Strategic location. The UAE is a strategic point between Europe, Asia, and Africa. About 1,000 flights are made internationally from this busy hub on a weekly basis.
That surely sounds impressive. If you have any questions about a UAE company formation opportunity, do not hesitate to click on the above link and ask our experts.
Jebel Ali Free Zone
Let’s look at a particular free zone to see in what way it may be beneficial for your business. Each FEZ creates its own conditions to attract entrepreneurs, and Jebel Ali (JAFZA) is no exception:
- This is one of the fastest-developing and largest free zones in the Middle East that actually laid the foundation for the country’s prosperity
- JAFZA is a holder of numerous business awards
- This business hub is now home to over 7,000 companies from 100 countries (with 100 of them being on the Fortune 500 list)
- Benefit from Jebel Ali Port, the largest one in the Middle East, and get easy access to Asian and African markets (2 billion people)
- Take advantage of JAFZA’s proximity to Dubai International Airport, the 8th busiest cargo airport on the globe
- There is a modern 6-lane highway, so your products will be delivered to the airport in just one hour.
- JAFZA’s main priority is long-term relations with customers, so the local authorities will do their best to make each entrepreneur feel welcome
Form your company here to enjoy the following rights, privileges, and opportunities:
- You will be exempt from corporate tax for 50 years
- You will meet no obstacles while repatriating your capital
- Your company will not have to pay import or export duties
- There are no currency restrictions
- If you want to employ foreign workers, you are free to open visas for them
- Benefit from the free zone’s unique location: this is the only one in the world that is close to a seaport and an airport at the same time
- Jebel Ali has its own customs service
- Use JAFZA’s specialized facilities and licenses for your needs
- Work side-by-side with the world’s largest companies to establish profitable business connections
Licenses Provided by JAFZA
You will need to get a license in Jebel Ali depending on your business activity. Below are the major licenses available here:
- Trading license. There is a regular license that allows you to sell the kind of products specified in it, and a general license (which costs more) that gives you the right to deal with a wider range of products.
- Service license. If you are going to provide banking, construction, or accounting services, you will need to obtain a service license.
- Industrial license. This is a license for you if you are going to establish a manufacturing company that imports raw materials and processes them to make products and export them.
- E-commerce license. Use it to buy or sell products and services online (you cannot use physical channels in this case).
- Innovation license. If your company focuses on the development of new products and services, this is the kind of license you will need to obtain.
If you have any questions, need consulting services, or want expert assistance in starting your business in the UAE, please click on the above link to visit our portal and make the first step to international business today!