Business setup in Dubai, UAE is very easy, no tax and 100% ownership. It could be very realistic to set up a company in one of the UAE’s 45 free zones. Over 30,000 groups presently trade from the 3 biggest UAE free zones.

New entrepreneurs can land in a free zone and hop on the fast-tune to release thru pre-packed licenses, worker visas, and company financial bank accounts. We can see a common thread emerging. The entrepreneur who has invested within the foundation in their UAE commercial enterprise through the free zone prepared to strike into new territory as soon as armed with expertise and initial fulfillment.

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We take a look at five motives, then, to hop the fence: to graduate from the free zone and comfortable the continuing enlargement of your best ventures within the deeply profitable mainland.

  1. It is important for growth: After some time in a free zone, your enterprise may be in a position to make bigger. One of the biggest advantages to set up the commercial enterprise in UAE is its deep, diverse and dynamic economy. If your free zone company is to begin trading with mainland UAE entities, you should pay customs tax and interact nearby agents who will take the fee for their service.

If that all appears a bit awkward, you can open a mainland branch of your free zone enterprise through registering with Dubai’s Department of Economic Development (DED). Now it is the best time to start thinking about the transfer. The UAE Ministry of Economy has currently announced that the restriction on overseas investors and traders from proudly owning more than 49% of onshore UAE companies may be partially lifted in 2018.

  1. It enables diversification: For your free zone company in UAE, the increase may mean diversifying into new products, services or sectors. In a free zone, greater work is involved. Free area authorities write up descriptive commercial enterprise licenses and problem them to citizens. There’s typically one named enterprise in step with the license. If you wish to emigrate into a new vertical, you want sector sign-off – a law with strict necessities this is often denied to applying companies.

Once again, the simplest foolproof manner for a new company is to diversify is to show to the mainland and register. Only as soon as setup is whole and a license is granted are you able to proceed and diversify. On the plus side, there’s no longer a third birthday party finding out the destiny of your commercial enterprise.

  1. It unlocks in addition recruitment: To live in the UAE, someone wishes to be sponsored both on the basis of the ownership of business inside the UAE, or an employment settlement with a company in the UAE. It’s a common hurdle.

Where free zones add value and certainly take away strain is thru dealing with the visa method and employees who’re subsidized to your behalf. But due to the fact, the ones employees are ultimately sponsored by means of the free zone now not via you, they’re authorized to paintings in that area handiest. Obtaining visas in free zones, whilst a clean and easy procedure has a difficult cap.

Mainland SMEs is a growth enterprise inside the UAE. In a 2016 survey, commercial enterprise intelligence company MEED determined that 70% of UAE SMEs deliberate to recruit an extra group of workers. In fact, six percent of companies meant to lease as many as 50 humans inside the year beforehand. That’s quite a few visas – and a solid signal of the capacity on offer.

  1. It offers access to rewarding government contracts: In the primary half of 2017, the UAE authorities gave out contracts to the price of AED 1tr (USD 272.22bn). UAE nation awards are really worth 25% more in actual terms than Saudi Arabia, the vicinity’s biggest economy.

In the first half of 2017, the UAE authorities gave out contracts to the value of AED 1tr (USD 21.3bn).

Government tenders are a huge commercial enterprise within the UAE. In 2016 the Abu Dhabi Executive Council permitted AED 17.5bn (USD four.76bn) of spending on authorities tasks together with over AED 4bn on infrastructure, almost AED 2bn on education and a blended AED 1.2bn on enhancements to governmental and social centers.

The cost of ongoing UAE production projects – many of that are public-personal-partnerships – is envisioned to be impressive AED 3tr. There’s the AED 24bn Aljada challenge, the AED 3.67bn MAG Eye, and the AED 3bn Marina Mall Abu Dhabi to name but three. Ahead of Expo 2020, AED 11bn worth of contracts might be fulfilled.

  1. It is all about ability: If your business offers in expert offerings – heavy industry or worldwide import/export – then free zones are a time-examined answer. They’ve been around due to the fact that 1985 whilst the Jebel Ali Free Zone Authority (JAFZA) becomes first begin. If your company has no interest in exploring the UAE mainland, then you are inside the proper place.

However, the UAE’s financial system is a boot device. If you notice it playing even a small a role in your organization’s future, then shifting from free zone to the mainland could be a game changer.

Free zones are remarkable places to combine into business existence within the UAE and provide a validated path towards establishing a company inside the precise UAE landscape. They are by way of nature, but, limited in how they could expand and capitalize on initial success within this magnetic, kinetic economic system.