Advantages and Disadvantages of Dubai Free Zone Business Setup

The focus of the investors and the business owners has shifted to the UAE a lot. That’s because of the numerous benefits and facilities which they can avail out there. The most attractive thing for them is the best infrastructure and modern lifestyle. Apart from that, the Free Zones of Dubai have also been playing a vital part in attracting most of the business owners and investors. That’s why, most of them aims for the Company Registration in Dubai Free Zones. 

There are some benefits and disadvantages of doing business in the free zones of Dubai and in this article we will tell you about them in detail. This will enable you to take a decision easily while setting up your business out there.

Advantages:

• For doing business in the free zones you don’t necessarily need a UAE local as a partner or shareholder in your business. Neither, it’s necessary to hire staff. But it is really mandatory to have an office.
• Your business is free of any kind of corporate or personal taxes.
• If you import and export goods from the free zones, you remain free from any kind of custom duties.
• The bureaucratic requirements are also very less.
• The recruitment of the staff can be done by facing very few restrictions.
• Infrastructure quality is really good.
• The prices of the utilities and energy are really competitive.

Disadvantages:

• You need to keep your business activities confined to the free zone only. You are not permitted to do such activities out of your zone, otherwise you can be fined up to $35,000.
• The company license is renewed every year, according to the new updated laws and regulations. If there happened a change in the rules and regulations, certainly they are imposed on you upon the renewal of a license.
• A business in the Free Zone must be renting an office within its zone. You are surely not permitted to rent an office in the Dubai City Centre.

These are some of the advantages and disadvantages of having Company Registration in Dubai Free Zones. So if you are also interested in setting your business out there, then you must know these all benefits and disadvantages. Knowing all these rules and regulations will save you from any inconvenience and heavy fines which can create huge problems for you.