What is an LLC, and Why Would You Want to Start One in a Free Zone?
A Limited Liability Company organized and regulated by the norms and regulations of the particular free zone in which it is established is known as a Free Zone Establishment or a Free Zone Company.
There are two kinds of them:
Free Zone Establishment Limited Liability Company (FZE LLC)
Free Zone Company Limited Liability Company (FZCO LLC)
The former has a single owner, but the latter might have several stockholders.
What are the Advantages of Using a Free Zone to Form an LCC Business Structure?
Liability insurance is a type of insurance that protects you from lawsuits. This is one of the most significant advantages of forming an LLC. This sort of business protects stockholders against debts and liabilities that may arise as a result of activities.
Protection against Losses another advantage is that if the worst happens, you will only lose up to the amount of your investment in the firm, not more.
Foreign ownership is 100 percent. Without a local partner, foreign entrepreneurs can wholly own their businesses. Local sponsors will be required, and you will be required to pay them an annual fee. To form a mainland LLC, local sponsors must own 51 percent of the company. Only 49% of enterprises can be owned by ex-pats.
Capital and earnings are fully repatriated. FZ firms can repatriate all earnings to their home nation, and they have 100 percent ownership of their capital.
Exemptions from taxes. There are no personal or corporate taxes. In addition, there is no income tax.
Duty-free status: both import and export tariffs are waived.
Cost-effective workforce. You have the option of hiring a staff of your will.
A wide range of business opportunities is available. You may select from a variety of business activities that will help you interact with other people.
Better Facility Alternatives For your business, you have a variety of facility alternatives to select from.
UAE visa is valid for three years. You can apply for a three-year residency visa in the UAE for yourself and your family.
Licensing for Limited Liability Companies
In the free zones, an LLC structure allows you to choose between three types of licenses:
For professional licenses, Industrial License LLC is the ideal option since it allows you to conduct business in local markets without fear of becoming indebted in the future. You can establish an LLC in one of 45 free zones in Dubai and the other emirates. Naturally, take into account the nature of your business while deciding on a specific free zone where you believe you will have the best chance of succeeding.
If you’re thinking of starting a business in Dubai or the Emirates, you should think about using the Free Zone LLC structure. Because forming a corporation on your own might be a demanding and time-consuming operation, you can enlist the assistance of expert business counselors in the Free Zone.
RAS Corporate Advisors, Setup Your Business in Dubai With 100% Ownership. Feel free to visit www.rascorporateadvisors.com for more guidance or dial +971 543586586.