Free Zones Dubai
If you’re an investor who’s eyed the benefits of business setup in UAE, you’ve already performed ample research on Dubai Free Zones and the advantages they offer. These business jurisdictions are independent sectors that provide a wide range of incentives for businesses operating there.
From little to no tax responsibilities to the ability to return all your profits to your home nation, there’s a lot to love about UAE Free Zones. However, there are also plenty of legal regulations and restrictions of which you’ll need to be aware.
In this blog, we’ll explore some of the biggest legal implications of business setup in Dubai, and provide you with the information you need to make the most of your future commercial endeavors.
The Introduction of Common Law in Dubai’s Free Zones
For years, Dubai has worked to establish itself as a global hub for trade and commerce. Part of that process has been through consistent regulatory adjustments and reforms. One such potential reform is the adoption of Common Law in Dubai’s Free Zones.
Common Law is a legal framework based upon the establishment of a body of law that is regularly updated by new rulings that are considered equal to those that have long been adopted into law by the legislature.
By doing this, business owners can take advantage of a stable business environment and legislature that evolves to meet their needs.
Dubai’s International Financial Centre
While it may benefit some business owners, the wildly varying legislature can also have other implications. This can be seen, for example, in Dubai’s International Financial Centre (DIFC). The DIFC features an expansive legislature with elaborate laws regarding data security, civil transactions, and more. At the same time, other Free Zones might operate with very simple legislative rules that do not cover modern commercial activities.
This has created an imbalance in representation for business owners throughout the UAE Free Zones. To address this serious concern, the UAE has passed an overarching legislature known as DIAC Arbitration Rules 2022, which designates the DIFC as the default seat for arbitration cases where parties disagree on the theater in which it will take place. While the ultimate arbitrative authority remains with the Tribunal at large, this regulatory change can remove a bit of uncertainty from many potential investors interested in business setup in UAE.
The Effect of The Adoption of Common Law Principles
Adopting common law principles within these free zones is anticipated to further enhance Dubai’s economic landscape by attracting more businesses and foreign investments to the region. These ever-changing regulations are expected to positively impact present business owners and future potential investors by providing them with a consistent, stable legal framework and a business-friendly environment where they can thrive.
Overall, this move has the potential to attract more investments and contribute significantly to the development of Free Zones throughout the UAE. If you’d like to learn more about these profound regulatory reforms, contact business consultant experts like MSZ Consultancy. Our knowledgeable consultants can provide all the information you need for business setup in the UAE.
The Implementation of Favorable Tax Policies
For potential investors, having a stable legal framework is a massive part of what brings them to the UAE. But beyond that, Dubai’s Ministry of Finance is further developing a comprehensive tax policy for all Free Zones and even extending to dealings with the Mainland sector for activities such as manufacturing and logistics.
However, this also represents a massive shift in Dubai’s legal framework. In the past, the UAE’s legal system operated under civil law, where the legislature was based on established legal codes and laws. This will likely evolve into a common law framework, where laws are not written in stone but evolve with every case brought before the judiciary.
This shift will carry significant implications for potential investors, and UAE officials expect it to lay the groundwork for making the region more attractive than ever for foreign direct investment.
Don’t Let the Legal Process Slow You Down. Let MSZ Consultancy Help!
Whether you’re a new investor wanting more information on business setup in Dubai or part of an established corporation hoping to open a regional branch, MSZ Consultancy has the expertise to help you cut through the legal red tape.
Our experts have years of experience assisting entrepreneurs with business setup, legal frameworks, ever-changing regulations, Government interfacing, and much more. From visa applications to finding a Public Relations Officer, we can bring you real results.
Contact us today at +971 52 544 1248 and speak to one of our experts. We’ll provide all the information you need to get your business up and running smoothly. Take charge of your business potential, and let MSZ handle the rest.