Currently, the United Arab Emirates remain the best place for doing business. It is here, where you will find the most auspicious conditions for setting up and development of the contemporary business in very different business segments. The exemption of taxes on profits, highly developed modern banking system, guaranteed protection of entrepreneurs rights, legal interests and personal assets, wide open opportunities for unimpeded capital movement, economically favorable location and much more make your business in the Emirates profitable and full of perspectival.
Opening business in the United Arab Emirates
When assessing the opportunities of an organization of profitable business in the Emirates, it is necessary, first and foremost, to determine the location within UAE and the type of your forthcoming company. The legal base of the United Arab Emirates provides a wide range of opportunities for potential investors and businessmen for setting up business. Each of those opportunities has its own requirements and conditions and all depends on the nature of your company’s business and the chosen model of doing business.
There are three main models of business in the Emirates:
- Offshore international company which performs its business activity anywhere outside of UAE;
- Onshore company in a free trade zone which performs its business activity within the free trade zone having a limited access to the country’s local market
- Local company (LLC), which performs its business activity internationally and unlimited access to the local market.
Taxation practice in UAE
The main distinguishing feature of UAE tax system is its simplicity. There are absolutely no corporate taxes on profits of companies and income taxes for natural persons. The exceptions are the businesses stipulated by the government. As a matter of fact, those businesses are the establishments of branches of foreign banks and companies involved in the oil and gas industry.
Any income from dividends, interest or royalty has the tax rate of 0%. The government of the United Arab Emirates actively works on the provision of the auspicious tax environment in the country. Currently, the United Arab Emirates have signed many double tax treaties with number of countries.
It must be noted, that the United Arab Emirates is favorable for setting up and development of the contemporary business and quite attractive for tax optimization. There are many holding companies structures on the international level for tax optimization or change of tax residency for natural persons. All this has been present for a long time and proven by time.
Some services for an effective business organization in UAE
The business development in UAE and its financing opportunities
Virtually every business necessitates financing at a certain stage of its existence for further development. When setting up business in UAE, you have the opportunity to revert to banks for trade and/or project financing.
The company’s age is the important aspect for placing a financing agreement or receiving a loan from banks in the Emirates. The minimum age of a company in order to receive funding is 3 years. Company’s financial statements, collaterals, project financial statements and other necessary documentation are all essential to receive financing for your business.
Natural resident persons are entitled to receive either mortgage or consumer loan. The main requirements for receiving financing for natural persons are: an official employment and evidence of a stable income. You will easily find an optimal type of financing by using specialized companies’ services.
It must be noted, that the United Arab Emirates comprise 7 separate Emirates. Each of the Emirates has its own legislation. For instance, the tax system of the Emirates is not regulated by the federal norms, as each of the Emirates stipulates its own tax policy. This approach ensures wide opportunities and multiple benefits for potential investors. Each of the Emirates has its own advantages for customs and tax optimization.
Currently, the construction business is actively developing in the Emirates. The financial streams worldwide are funneled into this country and participate in major investment projects promising a serious profit. New shopping centers, hotels, entertainment centers and other infrastructures sprout up at a tremendous pace in the Emirates.
The construction development and investment in new projects contribute toward an active growth of international tourism in the Emirates.
Obviously, the United Arab Emirates, have turned into the biggest international tourism center in a very short period of time, attracting visitors and tourists from across the globe.
The recognition of UAE as an international business center again confirms that it is reasonable and perspectival to do business in Dubai. If you had been in doubt and pondering before, then it is now the time to leap at the chance to elevate your business onto a totally new international level. We wish you a very successful realization of all your projects and ideas.