Compared to a mainland company, a free zone entity provides 100% ownership to a foreign investor with zero taxation, and numerous privileges when it comes to customs. Moreover, the timeframe for obtaining a free zone license, including the paperwork and administrative procedures, is usually much easier and faster than in the mainland. While the presence of the local agent/sponsor is not required, this type of company also allows international trade and trading between the UAE free zones without any taxes. Nevertheless, for trade of services/products with the UAE mainland, taxes may apply and a presence of a local distributor is mandatory.
Some of the major benefits an investor can get from owning a free zone license are:
- 100% foreign ownership.
- Complete tax exemption (unless dealing with the mainland).
- Privileged customs` regulations.
- Strategic locations.
- Various warehouse and office facilities available.
- Visa validity of 3 years with lower costs than in the mainland.