Abu Dhabi is the capital city of the United Arab Emirates. It is a modern city with a fully developed infrastructure thanks to the oil revenues of the region. However, the authorities are looking to transform the economic focus away from these strategic resources. Due to these decisions, company setup in Abu Dhabi free zone has become much easier. Especially the free zone businesses receive a lot of benefits, which we will discuss today.
A free zone is a special economic region where the ease of doing business is much higher. There are eight free zones in Abu Dhabi as of today. They provide a wide array of benefits for different types of businesses. Each of the free zones caters to the needs of certain types of businesses. For example, a startup in the import and export sector will benefit from company setup in the Abu Dhabi Ports Company Free Zone (ADPC). While a manufacturing business will benefit from the Industrial City of Abu Dhabi free zone.
Benefits of company setup in Abu Dhabi free zones
Different free zones provide different benefits to businesses. However, there are a few common benefits that you can expect from all free zones in Abu Dhabi. These are the benefits of setting up a business in Abu Dhabi free zone:
No currency regulation
There are no currency regulations for businesses that are located in the free zones of Abu Dhabi. Currency regulations are government-imposed currency-related restrictions that hinder the ability to change currencies or move profits outside the country. Since there are no such restrictions in place, financial transactions are much easier. You can convert your earnings to any currency without any problems or limitations.
Free zones businesses get 100% tax exclusion. The tax benefits apply to both personal income and corporate income. This means, the income of your business is free of tax, and your income, be it from wages or drawings from your business, is free of tax as well. If you have employees or laborers working for your business in the free zone, then their income will be free of tax as well.
All businesses in Abu Dhabi’s free zones are able to move their profits with ease. Repatriation in the free zones does not have a limit. All companies get full repatriation, which is one of the many reasons that make free zones so attractive to foreign entrepreneurs. The repatriation benefits apply to both profits and financial assets. That means you can move bank deposits, bands, and similar assets as well.
Export and import duty exemptions
Abu Dhabi’s free zones allow export and import duty exemptions for businesses located there. These exemptions are applicable to all types of materials. That means you can import and export both raw materials, finished products, and everything in between with ease. These exemptions make international trade very attractive to free zone businesses.
The free zones in Abu Dhabi allow businesses to hire foreign nationals. As they allow 100% tax-free income, Abu Dhabi is an attraction to talented workers from all around the world. This gives you the option to employ workers from a vast pool of talent. Other than that, the recruitment formalities are easier and more cost-effective in these free zones.
Although an amendment in the commercial allows mainland businesses to be 100% owned by a foreign national. There are still many sectors where a mainland business cannot be completely owned by a foreigner. However, all businesses located in the free zones can be 100% owned by anyone from anywhere in the world. The person does not need to be present in Abu Dhabi to have a business in one of its free zones.
The free zones in Abu Dhabi are ideal for SMEs and startups because workspaces are available here. By workspace, we mean all kinds of spaces a business may require for running its operations. That means not, only office space, but warehouses and industrial spaces are also available for free zone businesses at an affordable price. Since startups are low on funds, there are a variety of affordable office space choices for them in the free zones of Abu Dhabi.
The easy company setup procedure
The main purpose of these free zones is to make life easier for businessmen and entrepreneurs. That is why the company setup procedures in these free zones that are very simple and straightforward. You can get a trade license and get up and running in a few days after applying in the free zones in Abu Dhabi. Many types of businesses do not require you to have office space in the country to get started. In fact, you do not need to be present in the country at all to open these businesses.
Easy immigration procedure
Having a business in the free zones of Abu Dhabi allows you to get visas to the country easily. As a business owner, you can sponsor other visas as well. You can sponsor your sponsor’s or even domestic worker’s visa. Depending on the size of the office space you have leased, you can sponsor the visas of a number of your employees as well. Some of the immigration facilities of the UAE are directly connected to these free zones.
Fully developed infrastructure
As the economy of Abu Dhabi and the rest of the country is already developed thanks to the oil and gas industry. You get state-of-the-art facilities in the free zones of Abu Dhabi. They are well equipped with the latest technology. They also update and upgrade whenever any new and improved tech shows up in the business world.
As we have said before, there are more benefits that specific free zones provide to specific types of businesses. If you have any questions regarding which free zone will be perfect for the startup you have in mind, you can always consult with the company setup professionals. They also help make the free zone business and company setup process even simpler in Dubai, UAE.