If you’ve been in the industry, chances are that you must have heard about free zones. You will find one or more of these exclusive zones in many parts of the world. They are designed for a purpose and are likely to attract investors compared to normal business zones. When it comes to free zones, Dubai is home to several of them. In case you didn’t know, a free zone is an exclusive territory where investors are provided lucrative and often rare facilities. This is not the case with businesses operating from other zones even within the same city.
Dubai is no exception here, as you will find both types within the city. In fact, you will find free zones in all seven states in UAE. Each free zone brings a unique set of benefits and incentives to investors. Of course, the purpose of each zone is to attract maximum foreign investment. But, there are other purposes as well for which countries look to develop these zones. Here is more on why you should choose one of the several free zones available in Dubai to start business:
Zero % Tax Rate
It is true and you read that right. Almost all free zones across Dubai offer zero % tax rates for businesses. Each free zone offers businesses complete tax exemption, which is a great incentive no matter how you look at it. Every entrepreneur thinks about paying tax before the deadline falls. You might even be looking to hire tax consultant to pay your dues on time as all businesses do across the world. However, with no taxes to be filed, you have one less worry to think about.
Exemption Or Low Export/ Import Duty
This one is perhaps as big as the first one, the only difference being that you will not be paying any duties whether you want to import or export something. It could be raw materials or merchandise among commodities. Interestingly, there are no hidden costs as well so you will literally not be paying a penny for bringing things in or out of the country.
You are eligible to exercise your right to lease a space or facility for a minimum span of 25 years within the vicinity of the free zone. Common options include production areas, warehouses, and assembling facilities.
As such, once you’ve started doing business in the free zone, you will also earn the right to other facilities as well.