Strategically placed at the crossroads of major markets, Dubai has emerged as among the top choices to do business not only in the Middle East, but also in the world, offering state of the art infrastructure and a world class business environment.
One of the important factors behind Dubai’s growth has been the introduction of Free Trade Zones or Free Zones in the UAE.
A Free Zone such as the International Free Zone Authority (IFZA) is a special business area that is not governed by the UAE’s Federal Commercial Companies Law that applies to business setup in Dubai mainland . Having our own regulatory jurisdiction allows us to enable easy setup of business as well as to offer unique benefits to our Licensees.
What are some of the benefits of setting up your business at IFZA?
- You have full control of your company. Dubai mainland company formation requires a local partner who holds at least 51% ownership of the business if the company requires a commercial or industrial license to operate. While UAE Federal Law No. 19 of 2018 on Foreign Direct Investment now allows 100% foreign ownership of mainland companies, the law only covers businesses formed within a list of 122 Positive Business Activities that meet the minimum share capital requirements that vary between 2 and 100 million AED.
On the other hand, businesses incorporated at IFZA can enjoy 100% foreign ownership of with no paid-up share capital requirement.
2. You can take 100% of your capital and profits home. Operating out of IFZA gives you the advantage of being able to repatriate 100% of your capital and profits, without any restrictions.
3. You do not pay income or corporate taxes. Companies in a Free Zone such as IFZA also enjoy the benefit of 100% exemption from personal income and corporate taxes. Outside of Free Zones, companies still enjoy 100% exemption on personal income taxes, but corporate taxes are levied on foreign banking and oil related industries.
4. Your company formation process is faster and more efficient. IFZA has streamlined our company formation processes and requirements so you can set your business up sooner, rather than later. For example, we have eliminated the requirements for mandatory office space for basic license packages and the physical presence of business owners during the incorporation processes.
5. It is easy to apply for visas for your shareholders and employees. Businesses incorporated at IFZA have the advantage of being able to apply for a flexible number of Dubai residency visas for your shareholders and employees, with a validity of up to 3 years. Businesses registered in Dubai mainland have more restrictive conditions to comply with in order to obtain residence visas.