Dubai is one of the most sought-after destinations for those who wish to commence any new business. As a matter of fact, it has a special economic place where the business setup Dubai can be done without any hassle. The free zone registrations come with a full spate of benefits and services to the business owners. This is one of the biggest reasons why people are doing their trading business in the United Arab Emirates.
So, if you are a potential investor and you wish to make a lot of profits then Dubai is the best place to be. With the right kind of knowledge and expert guidance, you can do wonders and establish a highly successful Dubai Freezone Company. Big companies from all over the globe are coming here to set up their base and earn huge revenues. Set Up Business In Dubai Free Zone and make a huge difference.
Now the question that comes to mind is whether online selling is allowed in the free zone in Dubai. Our write-up will provide you with in-depth information about setting up business in free zone Dubai.
Licensing For Online Selling
A person can be slapped with stringent and huge penalties touching a whopping half a million if he/ she sells online without holding a requisite license for the same. Dubai Freezone Company Setup should be done in complete compliance with rules and regulations. The online catering business, beauty business, tailoring, selling bakery products, etc all fall under the ambit of online selling protocol. If your company is registered in the free zone in Dubai, it will be exempted from all kinds of taxation such as value-added tax, corporate tax, and customs, income tax, etc. So, if a company works under it, it will be better for it. Licensing is not a tab on how your work, it is like providing you so many benefits along with the peace of mind.
People now use social media as a tool to promote their business. But if you do not hold the requisite license for the same even if you are selling homemade food you will have to face repercussions. UAE Government has caught various illegal websites that have been selling products without a license. Therefore if you want to Open Company In Dubai Free Zone, you require a license from the Govt for conducting your business.
What Does the Law State?
Article 6 of the Dubai Law Number 13 of 2011 controls and manages the conduct of economic activities that happen in Dubai. It lays stipulation that all kinds of trading activities should have a license. This license should be issued by the Department of Economic Development (DED).
In case any person or company fails to fulfill this condition the business will be illegal and this can lead to serious penalties. So, if you have any plans to set up even online business in Dubai you need to make sure that proper licensing is there lest it can be hugely problematic later on.
All about Free Zones in Dubai
The Free zones in the United Arab Emirates are also referred to as free trade zones. They are mainly the economic zones that are meant for exchanging different goods and services at competitive customs and tax levels. The main aim of setting up these zones is to propel international business in UAE with advantages like total foreign ownership. Off late, a new free zone has been set up in Fujairah. Now, this is the cheapest UAE-free zone. Also, the advantages that you get at Fujairah you will not get at other free zones. This is the key reason why this free zone has become hugely sought after.
Difference between Free Zone Company and Dubai Mainland Company
The prime difference between the mainland company and the free zone company is that Free Zone Company is not allowed to conduct its business in the non-free zone. If it wishes to conduct its business in the mainland it needs the assistance and support of any local agent. However, for a mainland company, this stipulation is not present. It can sans any problem carry out its business activities wherever it wants in UAE. In Dubai, there are several free zones.
Benefits of Setting up Open Company In Dubai Free Zone
If you plan to set up your business in the free zone in Dubai, you will be surprised by the number of benefits that you can get. The cost of registering a company in the Dubai free zone is not very high. It is anywhere between AED 9,000 and AED 10,000. However, if you are registered in Dubai free zone you cannot carry your business in the Dubai mainland.
Mentioned below are some of the key benefits of doing business in the Dubai free zone:
- Total foreign ownership is permitted
- Total repatriation of both profits and capital. This is a huge benefit as companies registered on the mainland do not have this feature. So whatever profit that you earn is yours and this is what any business owner would want.
- No cost is involved in the transfer of funds.
- Total exemption from any kind of import or export duties.
- When you have to incorporate a company in the free zone the process is much faster.
- There are no currencies restrictions of any kind that are put in you are registered under Dubai free zone.
So, this is all about setting up a company in the Dubai-free zone. Set up your priorities and get in touch with the experts that will guide you through the whole process. It is better to take the right guidance as missing any important stipulations and regulations can be hugely unfavorable later on.