What are the advantages of setting up a business in free zones?

Entrepreneurs, across the globe, want a business environment that encourages businesses to blossom and take the business's growth story to the next level. Even established businesses also look for some business-friendly rules and regulations from the government to develop and expand their businesses, especially when they are growing in a new territory.

The concept of free zones perfectly fulfills the above criteria as these free zones are particular geographical areas where business development becomes easier, straightforward and smooth. Governments, to attract more investors and entrepreneurs to come and start business entities, develop these free zones where goods, services and other commodities can be traded while custom regulations are stringent and liberal. Another important point to mention here is that these free zones allow companies to start and function with minimum taxes and sometimes offer full tax exemption.

UAE is one of the most promising hubs for free zones as the UAE government is determined to open all possibilities for businesses to come and grow. UAE free zones were conceptualised to invite companies which are not licensed to operate their businesses within the UAE.

The laws and regulations that are applied within the UAE don't apply in free zones as these free zones are geographically distinguished areas and have their own laws and regulations. Companies in free zones are considered as companies operating outside of UAE.

These free zones are best for foreign investors and entrepreneurs who want to start their business entities here. There are some impeccable advantages these free zones in UAE offer to businesses. Some of them we will discuss in this blog.

Government incentives

UAE has been the international buzzword when it comes to free zones as the government is business-friendly and allocated special sanctions and provisions to invite foreign investors and startup enthusiasts. 

Most of the free zones are areas in the country where governments offer some impeccable incentives in terms of tax, tariff and regulatory. The main aim of the government is to lure and attract export-oriented companies and firms. The types of incentives given to the businesses depend on the countries and governments. Some governments only promote export companies and some offer incentives to all types of companies irrespective of their business niches. Some of the government incentives are:

  • 100% foreign ownership allowed.
  • Liberties in hiring foreign employees and others (no visa restrictions)
  • Full repatriation of capital and profits from the business
  • Easy and transparent licensing and business set-up

Location and accessibility

The location is very crucial for a new business. Having access to all types of transportation and markets is important, and that's what these free zones offer. These free trade zones are located at the key geographical areas where airports, highways and ports are located nearby. Some free zones have their own infrastructure and toll roads to facilitate smooth and quick transportation to the businesses.


One of the most important and lucrative advantages of free zones is the availability of splendid infrastructure at a very cheap cost. Some zones also offer custom, state-of-the-art office spaces for businesses that are tailor-made.

Furthermore, businesses will be facilitated with world-class and feasible digital infrastructure, including Internet connectivity and other digital facilities for quick and efficient business processes. 

Simple registration process

Another rewarding advantage is the smooth and simple registration process that these free zones offer. Most of the free zones ensure that the business registration process completed in 2 to 3 weeks. In addition to that, they have a team of trained professionals who will assist you in completing the registration and other formalities.


If you want a flexible environment to set-up your business with full privacy and security to your business operations, free zones are your ultimate destination. With superior infrastructure, unparalleled facilities with sparkling office space and availability of other crucial amenities, it will certainly create a warm and flexible business environment to write down your company's growth story.

Some of the other advantages that worth mentioning in the list are described below:

  • State-of-the-art operational facilities with superior communication systems
  • A huge and operatable consumer market across MENA and Asia regions
  • Warehouses, factories and offices structures available
  • Unparalleled on-demand business support services
  • Business-friendly and stable laws and regulations

The UAE government is leaving no stones unturned to make the UAE one of the most business-friendly countries across the globe. It is the best time to grab the opportunity and invest there. Just go for it and realise your dreams.

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