The United Arab Emirates today is one of the most optimal actively developing jurisdictions for business for a number of reasons. The main are:
- The favourable geographical position of the country at the intersection of major international trade routes, transport and logistics routes.
- A dynamically developing economy and a stable financial system.
- Developed commercial and financial infrastructure, the availability of functional platforms to attract foreign investors.
- The simplicity of company registration, which makes it possible to minimize the time between its creation and the actual start of commercial activity.
- Ease of opening and running a business, leading positions in the World Bank’s Doing Business global ranking (according to data for 2018, 11th place in terms of ease of business).
- Lack of foreign exchange control rules and rules on controlled foreign companies.
- A wide selection of commercial and residential real estate.
- A high level of confidentiality and security of doing business, combined with a recognized international reputation in contrast to the classic offshore zones (Belize, British Virgin Islands, Cyprus, etc.).
AND IMPORTANT: TAXATION SYSTEM IN THE UAE
There are no business taxes in the UAE, with the exception of 5% VAT. Here you will not find such taxes as:
- income tax;
- dividend tax;
- capital gains tax;
- asset tax;
- tax on the export and import of goods when carrying out activities through the free zone;
- tax at the source of payment of dividends, royalties and interest to non-residents, etc.
FREE ECONOMIC ZONES IN THE UAE
Free economic zones have been created in all emirates, within the framework of which registration with foreign participation is possible, their undeniable advantages over other offshore zones are obvious.
A company in the free economic zone (hereinafter referred to as the free economic zone or free zone) is an excellent solution for conducting local business within the specified zone or outside the UAE.
A free economic zone is an administratively defined territory with its own legal regulation regarding the activities of legal entities. Initially, it was planned to create a kind of cluster, uniting enterprises of one industry, for example, the Internet, trade, and subsequently, the range of permitted activities was expanded, allowing entrepreneurs to create companies of various profiles.
In the UAE, there are a large number of free economic zones, each of which has its own characteristics, choosing the appropriate one is the task of professionals who understand all the details of the upcoming business processes and understand the specifics of registration.
Companies registered in free zones are excellent for the following purposes:
Doing business within the free zone in the UAE and outside the country;
Organization of business in the UAE with a targeted focus (trading, industrial companies);
Obtaining a resident visa (status);
Opening a branch of an existing company;
A need for a company with a real office in the UAE.
Characteristics of companies registered in the free zone:
- Full foreign ownership;
- No taxes (except VAT);
- The implementation of economic activity only within the boundaries of the free zone (free zone) and (or) outside the UAE;
- Obtaining a resident certificate;
- Obtaining resident visas (the number depends on the area of the office), hiring employees;
- Lack of currency regulation and control;
- Lack of import and export duties when working with the Arab Gulf countries (Gulf Cooperation Council);
- The ability to use banking products.
Walton Consultants DMCC is ready to provide a free consultation and prepare an individual proposal taking into account the characteristics and prospects of your business. Leave a request on our website and start developing your international business with us!