The Economic Zones World (EZW) Free Zone, operating under the Dubai World Group, is dedicated to owning, managing, operating, and developing free trade zones and industrial parks. Established in 2006, this free zone aims to create a strong network of infrastructure platforms worldwide, supporting the dynamic growth of its diverse client base. EZW, a subsidiary of DP World FZE, strives to deploy its customer-centric and dynamic business models to foster sustainable societies in all its operational regions, while achieving remarkable commercial success for its corporate ventures. Currently, the free zone is fully operational in the Middle East.
The zone’s present portfolio includes numerous renowned regions including:
- Jebel Ali Free Zone (JAFZA) – One of the world’s largest free zones
- TechnoPark – A research-driven business and industrial park
- Dubai Auto Zone – An automobile industry-specific free zone
Which types of companies are allowed to setup business in Economic Zones World (EZW) Free Zone?
- Free Zone Company (FZCO) – This type of company requires a minimum of 2 shareholders for its incorporation.
- Free Zone Establishment (FZE) – This type of company can be established by a sole proprietor or corporate shareholder.
- Branch Office – A foreign company may establish its office in EZW as a branch office.
Since the Economic Zone world is made up of numerous areas, different firms can be established and office alternatives vary from region to region.
Why setup your business in Economic Zones World (EZW) Free Zone?
The Economic Zones World offers an advantageous environment for the establishment of business parks and technology parks, providing a platform for foreign investors to set up their companies in these zones. Additionally, the Economic Zones World places emphasis on creating an optimal network structure to facilitate global corporate operations.
- Tax exemption
- 100% foreign ownership
- 100% repatriation of capital and profits
- Minimal renewal fee
- Provision to own a bank account
- Flexibility of property ownership
- No restrictions for carrying out multiple businesses
Corporate tax applicability to the companies in Economic Zones World (EZW) Free Zone:
Corporate tax law is going to be applicable for all the companies registered in UAE including the free zones in UAE. The UAE Corporate tax is going to be effective for the financial year beginning on or after 1 June 2023 for the businesses in UAE. Corporate tax will be levied at zero percent on the taxable income (adjusted net profit) of the businesses in the free zones as long as they comply with all the regulations of the respective free zone and do not do any business with the mainland companies, otherwise there is a possibility of levying 9% corporate tax on the taxable income (adjusted net profit) in excess of AED 375,000. Hence companies in the Free Zones need to make sure that they are complying with all the regulations of the free zone and do not do any business with the mainland entities to enjoy the benefit of zero percentage of UAE corporate tax.
[NOTE: Kindly note that the authenticity of this article is limited to the day of publishing this blog. As policies and rules pertaining to each free zone keeps changing from time to time based on the necessity of the respective authority, it is hereby advised you to check the website of the concerned free zone directly to get the latest update on the same. We do not assume any liability if you have taken any decision based on the information provided in the article. We have ensured that the presented information to the visitor is legible to the maximum extent possible so that all the information is available in one page, at one go. Thank you.]
How can Spectrum help you set up a business in Economic Zones World (EZW) Free Zone?
Spectrum offers a seamless and straightforward process for companies looking to establish offices in the Economic Zones World (EZW) Free Zone. Our dedicated team at Spectrum will provide guidance throughout the process, addressing any queries you may have, supplying the necessary forms, and acting as your main point of contact to support you throughout the entire process.
At Spectrum, we specialize in Company Formation and Company Liquidation processes. Our primary focus is on serving our clients and ensuring their utmost satisfaction. As registered Auditors under the Ministry of Economy UAE and registered Tax Agents from the Federal Tax Agency UAE, we offer dedicated Auditing Services in Dubai and across the UAE, Accounting Services, TAX consultancy services, and serve as one of the leading accounting firms in Dubai. Additionally, we provide various Business Advisory Services to ensure compliance with regulatory requirements in the UAE.
The Spectrum Accounts team is ready to provide guidance and assist you with any type of advice you may require. You can reach out to Spectrum at +971 4 2699 329 or [email protected] to have all your questions answered. Spectrum is committed to being your partner in success.