The United Arab Emirates (UAE) is known as the Middle East’s premier business destination. It has for years been attracting investors from around the globe. This is primarily due to the fact that the country offers many offshore, Mainland, and offshore business setup alternatives. In order to reap the benefits of this, potential investors need to have a good understanding of the legal requirements that they will face upon establishing their businesses in the UAE. Additionally, they need to be aware of the different things that are required of them when it comes to doing business in the UAE.
One of the primary reasons why the business setup in the use zone is attractive to many foreign investors is the tax benefits that they enjoy. The country’s corporate tax rate is only 10 per cent, considerably lower than the national rates. Companies also enjoy extensive tax relief privileges, which allow them to take advantage of breaks on income and corporate expenses. Some of these advantages include exemption from payment or production-based taxation, preferential tax rates for certain businesses and more.
Aside from the low tax rates, another major reason why companies are attracted to the country’s business setup in Dubai free zone is the tax-free environment. The federal tax system in the UAE is quite efficient and comprehensive. This is due to the presence of numerous internal revenue bureaus that monitor and collect pertinent tax information on a monthly basis. Some of the tax-free zones include Dubai, Abu Dhabi, Employment National, Jumeirah, UDX, etc. Thus, entrepreneurs can enjoy tax-free income in every endeavour they undertake in the free zone.
Another benefit that business operations in the free zone offer to investors is the absence of personal income or corporate taxation. In other words, any company with an operational business can freely operate without paying income or corporate taxes. This applies to all business operations in the free zone, be it commercial or residential. Companies are able to save a lot of tax money by opting for business operations in the free zone. This is why many business ventures in the area opt for setting up their operations in the free zone.
However, if you are thinking about starting a business setup in the free area of the emirate, then you may have a hard time finding a suitable office space to lease in Dubai. For those who own their business operations in the free area, they may have to get office space in Dubai that is off the grid or that has a special rental contract. Office space in Dubai that is off the grid entails a monthly fee for the use of the building and its facilities. For those who own commercial real estate in Dubai, they need to pay an installment on a yearly basis to the relevant government authorities for the right to use the commercial property.
There are many ways to find office space in Dubai that is off the grid and that is affordable. If you want to start a business setup in the free zone, then you need to look for companies that offer office space for rent at a reasonable price. You can find such companies in the internet and there are also two services that can help you find such an office space. Such pro services include search engine optimization, which involves optimizing your company’s website so that it appears high on search engine results pages whenever someone searches for relevant products and services in the UAE.
Another way of finding cheap office space in Dubai that is available for rent is to contact the relevant license holder in your business setup in the freezone. For example, if you are looking to set up a manufacturing unit for import and export of goods, you can contact the Dubai Narcotics Commission (DOC) and ask for an office space for rent in Dubai that is licensed for such activities. The license that you need to get will be in writing and you will have to abide by whatever regulations are set out by the Dubai Corporation for Private Enterprise. You may have to pay a nominal amount of administration fees but once you get the license, you can operate a business right from your rented office space. The cost of such license is not more than what you would spend on food and drinks at the Dubai mainland. If you are running a business setup in the free zone and you want to know about getting business permits in the expected manner, you can go to the local uae resident coordinator. He will be able to give you all the necessary information that you need about getting the business permits and the other relevant documents. There are many companies offering free consultation today in the area of setting up a business setup in the freezone. You can make use of their free consultation to discuss all aspects of your business setup in the freezone. You can also avail of their services to help you find a local a residence that is perfect for you.