A Free Zone (FZ) also called Free Economic Zone is an area within a country, where companies are taxed very lightly or not taxed at all for promoting the economic activity in the country. Each of these zones is designated to a specific sector of business area which is further managed by the specific Free Zone authority appointed by the government of the country. However, the government of the country determines all the taxation rules of the Free Zone. For instance there are over 40 Free Zones in the UAE, each of which is framed for new businesses and startups looking to start their own venture. If you are looking to start up an organization in a free zone in UAE, then Adam Global (http://www.adamglobal.com/) is amongst the best of business advisory firms that can provide you a complete guidance on starting a company here.
Here in this article we shall be discussing a few of the benefits of starting up a business in the Free Zone area.
· You get government incentives in a free zone
The main advantage of setting up a company in a free zone area is the tax, tariff and regulatory incentives offered here. This duty free aspect of free zones draws in many export oriented organizations, entrepreneurs who are looking to start their own company and many other business types. The various types of incentives normally given by almost all the countries includes exemption from custom duties, value added tax (VAT), and import and export tax.
· You get 100% ownership on your business
When you think of setting up a business in a foreign land, then the business advisors like Adam Global (http://www.adamglobal.com/) will always recommend to look for a free zone in the country as a foreign investor is allowed for a complete or a 100% ownership of the business started here.
· You get a cheap infrastructure
Another benefit offered by Free Zones is the cheap and good infrastructure. One can find state-of-the-art office spaces in these areas, which are designed and built according to the preferences of the investors.