Free Zone Company Formation

Advantage of Free Zone over mainland

✓ 100% ownership. No local sponsored required.
✓ Different type of niche free zones according to activity for optimum atmosphere
✓ Many free zones near to port
✓ To promote international trade import and export duty are exempted.
✓ Income and corporate tax are not applicable in free zone companies.
✓ Flexiest options are available in free zones.
✓ Other benefits which are in mainland like repatriation benefit etc is still applicable in Free zone.

Disadvantage of Free Zone companies in Dubai

1. Trade Constraints within UAE

Despite these benefits, businesses can have more complexity in trading with companies outside their free zone. Most find it essential to hire a commercial agent or distributor onshore to do business. The law technically prohibits free zone trade with the rest of the country. This is especially for service providers. However, International trades does not fall under this classification. In fact, they are allowed and encouraged, largely tax-free.

2. Limitations on expansion Onshore

The drawbacks of a free zone company in Dubai includes confinement to the business activity of the particular free zone. Expansion into other UAE market places is not permissible. This can be highly restricting especially if the company plans to service the entire UAE market.

3. Limited to certain Rental units locations

A Free zone company setup in Dubai limits choices of office spaces available. This is because there is a requirement for companies to set up within the Free zone jurisdiction. Hence, rent is subject to the prices available within that Jurisdiction.

4. Limitation of activities

There are different niche free zones available for different free zones

                           ✓ Dubai Airport free Zone

                    ✓ Jebel Ali Free Zone

✓ DMCC

       ✓ Media city

                     ✓ Knowledge village

SKM International can guide you to acquire trade license with seamless process. We can help you to guide to reach to decision making for right free zone. We can help you to make company formation in all major free zones in Dubai and other emirates.

Legal documentation, process, Fees vary from Free zone to Free Zone. We may help you to find cheapest options for company formations

Call us Now.

Ms Suraksha +971504676658