Free trade zones are haven for a lot of business owners as this business district provide numerous benefits to entrepreneurs, especially those who are just starting their trade.
However, there are still some myths lingering around that prevents would-be entrepreneurs to try. To fully informed, here are some myths about doing business and free trade zones and the truth behind it:
Myth 1: You have no control over your business
In some locations, foreign nationals are not allowed to have full control of the business they set up. They need to have local sponsors that would be the major shareholders of your company. Which is why some expats and foreign investors are discouraged to set up their business in foreign waters.
But that is not the case with Ajman Free Zone company set up. Foreign business owners are given the liberty to take full control of the business they set up on the free zones. No need to look for local sponsors to share operational control on the company to be allowed to operate. They have free reign on their business as long as they meet the requirements.
Myth 2: You still have to pay taxes
One thing that business owners in Free Trade Zones or FTZ is the tax haven. Major tax breaks are given to businesses so they can allot their business funds on improving their business or expanding their reach. This is one of the reasons why a lot of business owners are encourage to go for Freezone company formation in Dubai.
However, there might be some changes on this policy but the expectations are the corporate taxes that will be implemented to businesses is much lower than those who are not in the free zone business area.
Myth 3: You cannot control the profit
This myth is related to the first one. Since you are in full control of the company or the business, you are in no obligation to share your profit to anyone, not even to the state. You have 100% control of the company finances, as well as the profit.
If you are a business or a company with a couple of investors, it is expected that you will share the profit with them. Also, if your business have branches outside the FTZ, another scheme might be applicable based on the branch location.
Myth 4: Office space is still required
With regards to the office space, that would depend on the FTZ area. There are still some FTZ that requires business owners to set up physical address for their businesses, while there are some who don’t require business owners to set up one. It would be best to check with the FTZ policy to be sure.