Over the past few years, Dubai has become a business hub for international investors due to its recent economic conditions and excellent infrastructure. Although there are various options for foreign investors, a freezone company in Dubai offers amazing benefits to business owners. Here, we will discuss the practical reasons to have Dubai Free Zone company.
Exemption from tax:
Companies and individuals in the Dubai Multi Commodities Centre can now enjoy a 50-year tax exemption. The new law will be effective from the date it is published in the official gazette. The exemption applies to dividends and capital gains paid by UAE companies and free zone companies. However, to qualify for the tax exemption, the UAE shareholder company must hold at least 5% of shares in the subsidiary company.
There are several benefits to setting up a free zone company in Dubai. First, it is an ideal location for expanding your business. Secondly, the free zones have efficient connectivity networks and internet connections. These benefits will help you decide whether setting up a company in Dubai is right for you.
It offers a wide range of facilities:
Another benefit to setting up a free zone company is that it offers a wide range of facilities. Companies can rent office space and warehouses that are in excellent condition. They can also rent fully equipped office spaces for a reasonable price. Since these spaces are easy to find, free zones are popular among startups and SMEs. The options available range from cheap to expensive, based on your budget and requirements.
A free zone company in Dubai offers several benefits for foreign investors, including the ability to own 100 percent of the business. The tax regime in a free zone is more flexible than on the mainland, and it is often more convenient to do business here. The free zones are clearly defined tax-free areas. These areas are governed by specific regulations and regulatory authorities, and businesses and individuals that are licensed to operate in a free zone are tax-free for as long as 50 years.
One of the most important advantages of setting up a free zone company in Dubai is its tax-free environment. There are no anti-avoidance laws or transfer pricing rules, which can make it difficult to set up a company in another jurisdiction. Moreover, the UAE doesn’t have any general anti-avoidance rules. Most businesses can conduct their operations without any worries about the tax burden.