When you have chosen to set up your company in a free zone area, aside from profiting from the full foreign ownership of the business, the company owners may likewise enjoy the zero-tax privilege of having the free zone companies.

Those mentioned earlier are just a few benefits that the company owners may relish from a company formation in the free zone. The free site is considered the UAE’s most favorable location for starting up a business.

Two types of Free Zone

1. Free Zone Establishment (FZE)
   The FZE does not require having multiple numbers of shareholders as it only requires having a single shareholder (either a person or a company).
2. Free Zone Company (FZC)
   The FZC generally mandates two or more shareholders. However, the shareholder can be a maximum of 5.

Benefits of having a Free-Zone Company

From having the ultra-modern infrastructure, and world-class business amenities to a flexible government policy, it cannot be rejected that establishing a company in free-zone areas in Dubai may gain lots of advantages for the company owners, such as the following:

• Full Ownership of the Company
  Unlike in any other areas in the state, a free zone company formation does not require having a local partner or agent. However, it implies that a foreign investor can possess 100% of a free zone company.
• Exemption from taxes
  The Federal Tax Authority (FTA) declared 20 free zones that will be exempted from VAT. For VAT purposes, these 20 designated zones are considered special zones, which are considered outside the UAE in terms of VAT.
• Financial Audit is not mandatory
  Some Free zone companies are not required to present their financial audit. The Free Zone authority does not require the free zone companies to submit their audit.
• Free Zone Residence Visa
  Having a company in a free zone area benefits the investors as they can apply for employment or an investor’s residence visa. In addition, with certain conditions, including the minimum salary, the holder of either employment or investor’s visa can apply for the dependent’s residence permit (spouse, children, housemaid, etc.)

In addition to these, it is possible to get the following benefits from a free zone company:

• 100% repatriation of capital and profits
• Exclusion from all the import and export obligations
• Exemption on corporate taxes (suitable for 15 years, renewable for another 15 days)
• Privilege to work in international businesses
• No restrictions on currency movements
• Easy processing for liquidation