Why The DWTC Freezone Is the best place for SMEs
The DWTC authority free zone stands out from the other free zones for many reasons – thanks to an array of benefits they offer. One of these benefits is its extremely attractive and advantageous nature for SMEs. As with any other free zone, the DWTC free zone company set up also offers full ownership of the business, full repatriation of capital and profits and zero income and corporate taxes. Here are some other unique reasons why the DWTC is the best place for SMEs to kick start their businesses.
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The DWTC free zone is located near downtown Dubai, 15 minutes away from the international airport and has easy access to many other convenient venues and facilities from any point in Dubai. This strategic location makes it very convenient for SMEs to conduct business operations and maintain communication or uninterrupted networks with the clients or suppliers in a cost-effective, efficient and hassle-free manner.
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Business Operating Permit
Any company, be it small and medium or large enterprises that are already established in the Dubai Mainland and want to expand their operations within the free zone, are eligible for a special permit called the “Business Operating Permit”.
This permit will consider these mainland companies as already licensed to either purchase an office or conduct business within the free zone. This gives a great advantage for SMEs as it significantly cuts down their growth or expanding costs associated with licensing. Even time-wise, this makes it extremely easy for them to expand their business at the glance of an opportunity without going through a tedious business setup or licensing process.
However, be reminded to grant this permit; the business activity that is planned to be conducted in the Free zone should be the same activity your conducting under the DED license. If the business activities are different, then you will be required to purchase a free zone license for the new business activity.
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Flexible Sub-Lease Options
Dubai World Trade Center Free Zone also offers the holders of both the DWTC license and business operating permits to sub-lease their premises to other lease members. This is greatly beneficial for SMEs as a side income and to cut their operational costs.
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Providing Sponsorship And Employment Services
The Free zone authority provides its investors who have registered within the DWTC authority with all the services related to sponsoring employees and family members. While this also has a tremendous impact on cost-saving for SMEs, they can also use this as a marketing tool to attract and retain potential employees in their organization.
Distribution Across UAE Mainland
While the DWTC free zone authority license and operating permit allow businesses to carry out their business activities within the free zone, the Free Zone department also allows its members (businesses) to distribute their goods outside the free zone through a licensed distributor. This allows a low-cost expansion strategy and also allows more flexibility in terms of utilizing mainland business opportunities.
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Another key reason why SMEs should start a business in the DWTC free zone is that it imposes no restrictions on the prices of the services or products. Meaning businesses have the freedom to set the pricing they think is the best for their business goal or plan. It also gives enough experimental freedom for SMEs to test out products in the market, how well they perform among the customers and make decisions accordingly. Pricing freedom also allows SMEs to better compete with competitors and identify different market niches their goods or services can cater to.