UAE Free Zones
Tax-Free Business Boon for Foreign Investors
The United Arab Emirates (UAE) has gained the attention of the business world in recent years thanks to the Free Trade Agreement the allows for foreign ownership in certain UAE Free Zones. The free that they are referring to applies to taxes and native ownership. This is a boon to foreign investors, because previously, due to Federal Law No.8 of 1984 and the amendments enacted through the Federal Law No.13 of 1988, UAE nationals must own at least 51% of any company doing business there. As you can imagine, a foreign business owner looking to access the powerful economic hub that exists in the different Arabian Emirates was very put off at the thought of handing over a controlling share of his or her business.
Fortunately, the Free Trade Agreement was put in place by forward-thinking UAE politicians and economists to spur their economy, and the result has been absolutely positive for the local economy and foreign investors alike. What this allows is for UAE Free Zones to be set up in certain areas where foreign investors can control as much as 100% of a company, and pay no taxes for 15 to 50 years. Of course there are very specific criteria you must adhere to, such as minimum office requirements and business activities, but such financial freedom in such an economically booming locale is incredible.
And there are several different UAE Free Zones, also called duty free zones or free trade zones, set up at areas that are beneficial to different types of businesses, so there is an area right for every type of business. Now, the different Arab Emirates can benefit by the massive economic power of the world economy and investors from the U.S. and abroad, and the business owner does not have to give up any precious control of his business. It truly is a win-win for both parties.
Since the creation of this very attractive business entity, foreign investors have made the UAE Free Zones home to over 10,000 businesses, and the impact on that region financially has been positively received and can’t be overstated. And as other emirates see the financial benefits for the local economy in these UAE Free Zones, it spurs them to create their own free trade zone, so more areas of foreign business ownership are becoming available all the time.
Obviously, the cultural differences between the West and the UAE are vast, and incorporation must be handled in a very precise, delicate manner. It would be corporate and fiscal suicide to attempt to handle the paperwork and filings on your own. So, if you are ready to benefit from the amazing financial power the UAE Free Zones have to offer, contact a seasoned UAE Business Formation specialist today and become one of the thousands of business owners enjoying this unheard of tax freedom.
For more information on UAE Free Zones, click here: UAE Free Zones