UAE free zones launch special rates as new businesses consider mainland options, corporate tax

UAE free zones launch special rates as new businesses consider mainland options, corporate tax

Dubai: Overseas businesses with plans to launch in the UAE are not taking a wait-and-watch approach on taking free zone license until the full updates on the corporate tax are revealed. Instead, these businesses are signing up as UAE free zones offer some of the most compelling rates and incentives to businesses that sign up now. The first quarter had seen most of the bigger free zones in the UAE report increased intakes of new licensed businesses – and many of whom will also have extensive operations on the UAE mainland. Among the categories that have shown the biggest interest to seek new licenses are businesses in the crypto space, fintechs and other digital technology focussed entities, and also those in industrial activities. “Free zones have already reduced their costs in recent years and probably continue to do so to remain competitive with both the mainland and other free zones (offering) set up options,” said James Swallow, Communications Director at PRO Partner Group. “Many clients are opting for mainland set ups with 100 per cent ownership (versus the free zone option) – as this is a significant benefit. “The mainland seems to be the most compelling option for companies setting