Setting up a business in UAE, a low tax jurisdiction country is very easy.
Below, we will discuss 6 advantages of doing business in UAE. If you plan to move to Dubai, Abu Dhabi, Sharjah, or any of the other Northern Emirates, this is a must read.
Note: If you are an entrepreneur (in another country) and looking to start or grow your business, our insights below will highlight the pros of setting up a business in UAE.
Your business will not be considered shady. UAE’s economic transformation
UAE leaders have been taking many steps to change the image of businesses in UAE. UAE does not want to be known as a tax haven any more. UAE has implemented many compliances like ESR, AML, CFT and so on. UAE has also taken various steps to make sure that the legal system is up to the mark with international standards, making sure contracts are enforceable and are upheld in the court, and speeding up litigation. For example, the recent update on the bounced cheque laws.
You have complete control. 100% Foreign Direct Investment (FDI)
There has been a recent update in the law allowing for 100% FDI for specific activities in the UAE. This means, unlike before, you do not need to have a local sponsor (an Emirati national) to own 51% of your business. The new ruling pertains to only 122 activities.
If your business activity is not in this list, you will still have the option to set up a company in free zones, like JAFZA, KIZAD, DMCC, DIFC, DWC, SAIF Zone and many others with 100% ownership options for foreign nationalities.
Barely any corporate taxes!
One of the major advantages of setting up a business in UAE is low taxes. UAE has a very low rate of 5% VAT, no corporate tax, no capital gains tax, and no income tax.
Now that you have the ability to work from anywhere, with increased acceptance of zoom and other online platforms you don’t have to be residing in a high tax jurisdiction to do business.
It’s almost all online/Ease of doing business in the UAE
UAE’s leadership is very proactive in taking many measures to make it easier to actually do business in UAE. It is possible to set up a company in less than an hour, easily apply for credit, and just general ease in getting business done.
Hence, Dubai is a preferred destination for many blue chip and global companies to house their regional/asia-pacific head offices.
Apart from easy access to Europe, Asia and North Africa, your business will have access to one of the most sophisticated, efficient and cost effective logistics hubs in the world.
Dubai has also a great advantage of a sea-air transit hub. This is especially important for companies that are involved with imports and exports across the globe.
Easy repatriation of funds
It is easy to repatriate funds to your home country as there are no corporate taxes in UAE. Also since the local currency UAE Dirham is pegged to the US dollar, you do not need to worry about the currency fluctuations.