Benefits of establishing your business in a free zone

Benefits of establishing your business in a free zone

For those who don’t know, free trade zones happen to be special and dedicated economic zones that have been established with the aim of attracting foreign investments. To attract foreign investors the government of Dubai has offered custom duty benefits and tax concessions to them. As of yet, more than 30 free zones are currently operational in Dubai. The one thing that you should know about these free zones is that, they have their very own frame work pertaining to rules and regulations. They all have their respective authorities responsible for providing business licenses to foreign business owners.

For the record, every single free zone that has been established by the government of Dubai has been designed in such a way that it focuses around certain industry categories and offers business licenses only to companies that are focused on those certain categories. These are operated and managed by their respective authority. For instance, the management, operations and supervision of the Jebel Ali free zone is the responsibility of the Jebel Ali free zone authority in Dubai. On the whole, the establishment of these free zones has played a significant role in pushing other emirates towards the initiation of their respective free zones. This is why, you will see a lot more business owners taking interest in Fujairah free zone company setup.


There are a plenty of benefits that you can gain by establishing your business in a free zone. A few of these are:

1- 100% ownership

If you establish your business in the mainland, the law requires for you to work with a local sponsor. Sponsor should be a UAE or GCC national and he should be offered a 51% partnership in the business. On the other hand, this is not a necessary when it comes to establishing your business in a free one. You will get to maintain 100% ownership of your business.

Easy and quick company formation

The best part about establishing a business in a free zone is that the process is very easy and quick. You license and permit will be granted quickly and you will be all set to start your business in just a couple of days.

Tax benefits

Free zones are tax free zones, which means that when you establish your business here, there will be no need for you to pay exorbitant taxes. Use this link for further information in this regard.