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5 Profit-Building Advantages of Forming a Company in Dubai Free Zone


The United Arab Emirates, particularly the emirate of Dubai, is world-famous for its behemoth architectural marvels, western-like lifestyle, and lavish amenities.

However, apart from tourists and job seekers, there is another class of people that are very much interested in moving to Dubai, and those are entrepreneurs and businessmen.

Since the beginning of the last decade, company formation in Dubai has reached an all new level, with globally popular companies such as Telegram choosing the United Arab Emirates to be their headquarters.

Photo by David Rodrigo on Unsplash

So, what makes company formation in Dubai an attractive idea for businesses?

It is definitely the availability of multiple business-friendly Free Trade Zones within the emirate.

For the unaware, Free Trade Zones are special industrial areas within a city that are specifically designed to be hubs for businesses to manufacture, import, export, or store goods without being subjected to the local taxation rules.

There are 3 major Free Trade Zones in Dubai, the Dubai International Financial Center (DIFC), Dubai Multi Commodities Center (DMCC), and the Jebel Ali Freezone (JAFZA).

In this article, we will be taking a look at some advantages of forming a company in the Dubai Free Zone that helps to improve profits.

5 Profit-Building Advantages of Forming a Company in Dubai Free Zone:

  1. Complete Company Ownership:

    One of the best benefits of starting a Dubai Freezone company is that foreigners can maintain 100% ownership of the company. Moreover, Freezone companies in Dubai also get assistance regarding the sponsorship, recruitment, and housing of their employees.

  2. No Currency Regulations:

    In basic terms, currency regulations set a limitation of how much local currency can be converted into foreign currency, and vice versa. Almost all countries in the world have currency regulations to maintain the flow and availability of foreign/local currency in the local market.

    However, in the UAE, there are no such restrictions for Free Zone companies, which makes it easier to conduct business operations internationally.

  3. Easy Setup Procedures:

    As the demand to set up companies in the Dubai Freezone has exponentially risen in recent years, the government of Dubai has made sure that the procedures involved in registering and setting up a company in Dubai are as simple and streamlined as possible.

    First, you need to make sure that the company you’re planning to start falls in any of the allowed entities to operate within a Free Trade Zone. The next step is to pick a trading name for your company and apply for a business license. In the subsequent step, you need to pick and register an office space for your business and get the approvals from the respective Free Zone administration.

  4. Access to Major Cities Around the World:

    The United Arab Emirates has deeply positive diplomatic relations with several developed and developing nations around the world including China, Russia, the United States, the United Kingdom, India, and even Israel.

    Easy access to the major cities and nations to conduct business means that business owners have an increased range of target customers to focus on, which in turn helps to boost the revenue and profits.

  5. Growing Local Economy with a Diverse Population:

    The UAE is home to a very diverse population that includes people from all around the world. Such a variety of populations means that you get to hire the best talent possible for any task.

    Moreover, the country also has a growing economy that sees new laws and reforms set to help businesses exist in the country tension-free. A major part of the UAE’s budget is set to boost the local infrastructure, which again helps to stay ahead in the long run.

What Else Do You Need to Know?

Even though setting up a Dubai Freezone company seems like the best idea for a business, there are few limitations you need to know about.

Often these limitations depend on the type of business establishment that you’re planning to set up, whether you’re planning to enter the local market, etc.

Therefore, it is important that you consult a professional service provider that excels in offering company formation facilities in Dubai.