UAE free zones started in the 1980s in Dubai. It aimed to prove to the government that the influx of foreign investors into the country is possible if you offer them good business conditions. Few are positive in this experiment because at that time there were already enough offshore jurisdictions that offered businessmen from around the world ways to conceal income and reduce the tax burden.
The rulers of the United Arab Emirates decided to create soft tax policy zones with a simple and transparent registration process which would be used not as a tax haven, but as a field for business activities.
Today, Ras AL Khaimah free zone (RAKFTZ) is among the best free zones in the UAE. The sheikh of this emirate created it only in 2000 by his decree. The zone’s representatives made their activities in many countries: USA, Turkey, India, Germany, bringing more and more new foreign investors
to the market.
RAKFTZ offers a lot of advantages to your business. Foreign entrepreneurs can avail of infrastructure facilities, registration agents, banks, transport connections, round-the-clock security and much more.
The benefits of opening an offshore company in Dubai
The UAE government initially declined to turn into a classic offshore. The registration process for foreigners started quite difficult because all data was checked. With this government policy, offshore company registration in Dubai has the following benefits:
- Data confidentiality – most states agreed to declare their readiness to share tax information with each other. The UAE did not sign such an agreement and, despite some external pressure, are not going to do this in the near future.
- Great reputation – offshore firms, schemes, and banks are bound with financial fraud by many entrepreneurs. Opening the same offshore company in the UAE, entrepreneurs can work without fear of reputational risks.
- Presence of agreement on double tax exemption – the UAE has signed a similar agreement with several dozens of states, and the list continues to grow.
- Stable political and economic climate – the UAE operates on a strong regulatory economic model, and the people immensely respect the government and authorities.
Ajman Free Zone
The Ajman free zone was launched in 1988 and received autonomy status in 1996 according to the decree of a ruler of the Ajman Emirate.
It offers competitive privileges and administrative support that enable companies to receive good returns on their investments. A world-class infrastructure, flexible legal frameworks, tax breaks, and ideal logistics conditions make an investment in this free zone efficient and competent.
One of the most important factors of the Ajman free zone is its tactical location with these advantages:
- The location is opposite the Ajman Sea Port at the entrance to the Persian Gulf, which makes Ajman a strategic place to deliver goods to both western and eastern markets.
- The nearest international airport is just 20 minutes from the Ajman free zone.
- The modern international road network links Ajman with neighboring countries.
- Proximity to Dubai and Sharjah provides access to four ports and two international airports.