The United Arab Emirates is today one of the fastest growing trade centers in the Middle East. In addition to a strategic geographic advantage, which provides the country with global connectivity, attracting investors and tourists from around the world, there is a visionary government that helps business communities in all industries prosper with supportive initiatives.
For those who are interested in establishing a company in cities such as Dubai, Abu Dhabi or Ras Al Khaimah, in the United Arab Emirates, here is all the information you need to know:
Seven reasons to set up a company in the United Arab Emirates
New Company Registration In Dubai is simple and fast
In the United Arab Emirates you can carry out the entire process required to establish a company digitally, from authorizing bank transactions to electronically signing any official document.
Once the business activity to be carried out is decided and the structure of the company is established, the necessary documents can be submitted and the license applied for. If all the documents are there, the company can be incorporated in a week.
Ease of doing business
The United Arab Emirates provides a highly business-friendly environment for both start-ups, small and medium-sized enterprises (SMEs) and multinational giants, operating in various sectors to grow and prosper. Here are some aspects of why it is simple to do business in the United Arab Emirates:
The United Arab Emirates not only has a strategic location in the region, but also has numerous well-managed and well-positioned ports and air routes that facilitate doing business as they are considered key logistics centers.
Entrepreneurs settling in the country can easily explore new markets and connect and trade with suppliers and customers in the Arabian Gulf, Africa, Asia and Europe regions.
An important factor in the company registration process is the location that is chosen in the Emirates. The main zones are classified as ‘free zone’ (free zone) or local companies (non-free zone). The latter are businesses registered under the Government and the laws of each emirate, the free zone is governed by a different jurisdiction.
When setting up a company in the United Arab Emirates, especially if you choose a free zone, there are field staff who help customers throughout the process. You can access free consultations that serve as support when carrying out the necessary government procedures in the process, including the documentation for business license and visa applications.
The lowest corporate taxes in the world
The United Arab Emirates has one of the lowest corporate taxes in the world. The global average is 23.5 percent, according to the Tax Foundation report. Instead, the United Arab Emirates will impose a 9 percent tax on companies with annual profits of more than Dh375,000 in 2023.
In addition, free zone companies that do not operate in local territory are also exempt from the tax regime, thus, entrepreneurs who decide to locate in this type of area will enjoy the benefit of zero taxes on profits and income. In addition, the entities of the free zones are also not subject to the payment of the 5 percent value added tax that is currently levied on the sale of goods and services and is paid by the final consumer in the supply chain.
One hundred percent foreign ownership
Until just a couple of years ago, foreign entrepreneurs who wanted to open a business in the non-free zone areas of the United Arab Emirates had to associate themselves with an Emirati sponsor who necessarily owned 51 percent of the company’s shares. Now, however, foreign investors can own the company and control its business operations and finances, without having to worry about finding a trusted local partner.
This amendment made to the country’s Business Companies Law in early 2021 was hailed by the business community, boosting foreign investment and motivating more businessmen to settle in the UAE.
Quality of life
The United Arab Emirates vaccinated 97 percent of its population and opened its doors to businesses and tourists a few months after the Covid-19 pandemic broke out. Thus, they demonstrated their ability to know how to quickly manage a health crisis, prioritizing the safety of their residents.
The Emirates offers expatriates living in the country a good quality of life in a multicultural environment.
In addition, it was chosen as the second safest country in the world in 2021 and has options to obtain long-term visas for foreigners. The entrepreneur