Start a Business in Dubai Free Zones and Get the Benefits

Start a Business in Dubai Free Zones and Get the Benefits

Dubai is a great place to start a business because of several reasons. As a part of the UAE, this city has a high ranking of ease of doing business. In addition, expatriates can start a business in Dubai in the free zones, where they can get several benefits.

However, it doesn’t mean there are no drawbacks to starting a company in these zones. Therefore, it is essential for expatriates to consider the pros and cons of setting up a business in Dubai-free zones.

Start a Business in Dubai Free Zones: the Pros and Cons

Many expatriates are tempted to set up a business in Dubai-free zones because of the benefits offered by these zones. If you want to start a business in Dubai free zones, too, you need to weigh its pros and cons though.

The Pros

The advantages of setting up a business in Dubai free zones are:

  • 100% Ownership

Expatriates who operate a business in a free zone have 100% ownership of their company. It is different from setting up a business outside the Dubai free zones in which they can only have 49% ownership, and a sponsor or a local Emirati owns 51%.

  • Tax and Customs Duties Exemption

Operating companies in the free zones will free business owners from paying any kinds of corporate taxes and customs duties. Therefore, they can have more income and revenue.

  • Excellent Infrastructure

The free zone regions are equipped with excellent and modern infrastructure. As a result, business owners can operate and develop their free zone companies comfortably and successfully.

  • Unlimited Business Transactions

Business owners who operate companies in the free zones can have unlimited business transactions with the locals and the expatriates.

The Cons

The drawbacks of having free zone companies:

  • Restriction in Business

Free zone companies are not authorized to work with mainland companies or individuals onshore inside the United Arab Emirates.

  • Limitations in Jurisdiction

Free zone companies cannot expand their business outside the zones, so they may not be able to grow and develop as mainland companies.

  • Specific Business Only

Each Dubai free zone is dedicated only to a specific business. For example, expatriates who want to set up a healthcare clinic can only open the clinic in Dubai Healthcare City.

How to Start a Business More Effortlessly in Dubai

Despite the drawbacks of the free zones, you will get more advantages from having a free zone company. However, it is important to note that starting a free zone company is more complicated compared to starting an offshore company.

In addition, you need to make sure that your business will be profitable in Dubai-free zones. To find out more about the business opportunities in these zones and market trends, market competition, and market size of the industry, you can read and find insight from Lucidity Insights

With the help of this agency, you will have a profitable free zone company in Dubai. This agency will also help you in dealing with the legal aspect and the whole process of setting up the business in one of the Dubai free zones. As a result, you can start this business with less complication.


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