The UAE today looks from the side a kind of paradise. Moreover, this corner is a paradise not only for tourists but also for entrepreneurs. Availability, efficiency, reliability – these are the key characteristics of a business in the UAE. The unique combination of oriental flavour and the latest technology makes the UAE attractive for businessmen from all over the world. At the same time, some 10 years ago this attraction was safely hidden from prying eyes. Now more and more foreign entrepreneurs are striving in the UAE to conduct business on conditions favourable to themselves and customers.
UAE: free zone or clear rules?
Businessmen from all over the world, tired of excessive taxes, fierce competition, constant control and low purchasing activity, see the potential in the UAE. On the one hand, it is a country with clear and very clear legislation. What can be done and what cannot be done – it is painted as clearly as possible. Elements of Islamic law make established rules ethically sound. On the other hand, it is a country open to citizens of all states who are ready to comply with these rules. A huge number of economic zones are being created for this. Each zone has its own specifics. Any businessman will be able to find a place to their liking and within their means. This unique combination of freedom and rules allows you to conduct business as efficiently and securely as possible.
UAE: how are things with business taxes?
The tax system in the UAE is absolutely simple. There is no personal income tax, corporate tax. Only recently appeared VAT and then, at a minimum rate. For comparison, in Russia, there are both direct (income tax, income tax, transport tax, property tax), and indirect taxes, insurance premiums are paid separately. All this creates a cumbersome and difficult to administer the tax system.
The situation is completely different in the UAE. In addition to the obvious advantages in the form of a reduction in the tax burden and expenses, expenses related to accounting are practically disappearing. We are accustomed to huge piles of papers that accumulate at the accountant’s desk every month, quarter and year. The idea of business disappears behind the bureaucracy. The entrepreneur no longer wants to invent and invent anything, he needs to submit an incredible number of reports on time. In the UAE, business looks completely different.
There are no administrative expenses for accounting, just as there are no piles of papers. There is only a requirement for an annual audit. In this sense, the UAE has a great advantage over any other country. Here you can enjoy creativity because business is nothing but the idea embodied in life on how to make this life easier and better.
UAE: how to open a business?
For us, business is usually an office. A lot of business ideas remain unfulfilled only because their authors did not have enough start-up capital to rent an office. In the UAE, this issue is more than loyal. You can register a business without renting a permanent office. About 40 different economic zones are suitable for this. At the same time, the newly created company, as well as its owner, become tax residents of the UAE and receive the necessary conditions for an economical and successful business. Therefore, the minimum capital is all that a beginner businessman needs. On the other hand, the UAE is an excellent platform for large businesses. This is due to the extremely high purchasing power of the wealthy local population. UAE citizens love and can spend money. In addition, shopping enthusiasts flock to the UAE from all over the world. Perhaps a more active market is hard to find.
UAE: which business will be successful?
Unbelievable, but it is a fact. Absolutely any business in the UAE can bring success to its owner. This is production, and sale, and services. Catering, clothing, jewellery, appliances, floristry, cleaning, cars and much more. Everything is in demand here. The Internet market for goods and services is developing rapidly. You can manage to take a strong position in, for example, online trading.
What are the main advantages of doing business in the UAE?
- The clear and simple registration system
- Wide range of activities
- Lack of most taxes
- Lack of monthly activity reporting
- The ability to optimize the logistics of the movement of goods and services
- High purchasing power
UAE: how to make the right choice?
All Emirates are different from each other. Each has its own rules for starting a business. All of them are quite simple and understandable. An invariable condition is the availability of a trade license. The cost of a license varies depending on the type and place of activity. In order to navigate and make the right choice, many factors should be considered. You need to choose the emirate, the economic zone in it, the type of activity, think over logistics and much more.