Today, the United Arab Emirates consists of seven independent and rather autonomous subjects. Each Emirate has its own specifics and offers its unique economic features for business. The country is located on the crossroads of trade routes from West to East and into Asia. Owing to such an advantageous location, the UAE has become the major international center of business – commerce, banking, manufacturing, modern logistics and etc.
The main advantages of doing business in the UAE
There is a large number free trade zones on the territory of the United Arab Emirates, which are formed in order to attract business – foreign investors and entrepreneurs. These free trade zones became one of the key factors of the development of the international business in the UAE and great incentive for the moving of the various large and medium sized international companies into the country.
Company registration in such free trade zone provides foreign businessmen with the possibility of complete ownership and company management. There are significant tax and customs benefits, and there are no restrictions on the volume and nature of the movements of the investment funds and their repatriation for companies domiciled on the territory of the free trade zones.
The authorities of the United Arab Emirates also provide the opportunity for the registration of the offshore companies, which can carry business only outside the UAE, but, at the same time can acquire immovable property in ownership within the country, participate in investment projects and serve as owners of other companies in UAE and abroad.
There are no restrictions at the legislative level on the currency exchange, profit and its withdrawal in the form of dividends and capital circulation. The authorities aim to optimize all the processes and to simplify the opportunities for carrying on business to the maximum extend, what results in the constant work at all the levels and the improvement of the country governmental system and regulations.
Business benefits secured on the legislative level:
- No corporate taxes on the gained profits for legal entities;
- No income taxation for business owners and companies' employees;
- Simplified financial reporting system – no need to carry out annual audit or the simplified reporting.
- Protection of the interests of the foreign business owners.
Besides, the entire way of life of the UAE opens great prospects and opportunities for further creation and development of the successful business. The minimal crime rate, minimal taxation, stability of the current national currency, broad proposals for residential and commercial properties for their purchasing and renting, and the perfectly organized infrastructure – all this makes the United Arab Emirates very attractive for the setting up of a new business or expanding the existing one.
Certainly, the possibility of organizing business in the United Arab Emirates – is the new opportunity to promote your own business on the entire new international level. Let’s consider in more detail several reasons which are related to the prosperity of business in Dubai, and which you can also use for the achievement of your goals.
The geographical location of the state
The United Arab Emirates is located in the heart of the crossroads of the trade routes of East and West, Europe and Asia. It helps to organize effectively an international trade flow with the minimal costs. There are modern sea and air transport companies, ports and airports in the UAE, which are connected with all the leading international transport hubs, and which provide the possibility of delivering goods from and into any part of the world.
Besides, the location of the country allows flying quickly to the UAE from a large number of the countries, and in the case of living in the UAE it is easy to fly to any country in Europe, Asia or Africa.
The rapid pace of development
It is not a secret for anybody that over the recent decades the United Arab Emirates has become a major international center of business activity. Interests of many large corporations and holding companies are concentrated here. Moreover, the Emirates began to take leading positions in the field of international tourism. The investment capitals, which flock to the Emirates from all over the world, are devoted to the implementation of many large-scale projects that contribute to the active development of the economy in the country.
The year to year increasing domestic consumer demand on the import of goods, which are necessary for the local requirements, as well as a significant increase in the volumes of export and re-export, also plays an important role for taking decisions about establishing business in Dubai.
This factor and indicators of the constant dynamic development of all the sectors of the economy are the direct and most visible proof of the success of the terms which are offered for business by the UAE.
Administrative entities of the Emirates in the UAE
The country consists of seven separate and independent Emirates. Each of these administrative units opens its own unique features and benefits for business. If certain Emirates, for example, are more suitable for tourist or hotel business, the others can be more attractive as industrial centers. You can choose the most suitable option and the most optimal conditions for carrying on business, depending on the kind of activity of your company and the range of your business.
Any business has the possibility of the optimal solutions for the set tasks thanks to the great offer and a wide range of different free trade zones with different infrastructure.
Free Trade Zones in the UAE
There are specialized free trade zones in different parts of the United Arab Emirates. These free trade zones were established in order to attract foreign investors and entrepreneurs into the country. These administrative units are under the control of the state bodies which carry out the licensing of entrepreneurial activity in their territory. It is not a secret that the main attractiveness of such free zones lies in the unique possibilities for carrying on international business.
The main distinctive features of the free trade zones of the UAE are:
- The availability of the entire required infrastructure – land, premises, roads, connections and etc.
- Clear rights of the foreign business owners.
- Possibility of the 100% foreign participation in the share capital of the company and no need of involving the local citizen as a mandatory participant of the company;
- Full exemption from the corporate and other tax payments and fees;
- Opportunities for the repatriation of the invested capital and gained profits;
- Total absence of the customs duties and fees.
Such FTZ are created by the government for the implementation of the extensive or only a certain type of business activity. This can be, for example, production activities, trading activities, sales and purchases of jewelry or carrying on business in the sphere of high technologies, etc. Almost every free trade zone provides the option of setting up a company, which can carry out export or import trade operations.
Restrictions affect companies related to the provision of the services directly in the territory of the UAE – tourism, transport and etc. You need to register a local company in order to carry out this kind of activity in UAE.
It should be understood that each company, for carrying out its activities, must obtain the appropriate license.
Business licensing in the free trade zones in the UAE
The United Arab Emirates legislation defines three basic types of issued licenses:
- License for trading and other commercial activities;
- License to work in industrial / manufacturing industry;
- License for the provision of the servicing and consulting services.
The license is issued by the appropriate state agency, which exercises control over this free trade zone, and such license is renewed annually.
Registration of the offshore companies is also applicable on the territory of some administrative units of the United Arab Emirates. For such companies there are restrictions in terms of carrying on business within the country. However they are allowed to act as the holders of the local companies and to purchase real estate within the country, and also to carry on almost any business outside the UAE. These companies are also characterized favorably by the price of registration and renewal and by the absence of requirement on financial the reporting.
Summing up all what was mentioned above we can say unambiguously that in the UAE there are opportunities and prospects for any kind of business activity, regardless of its type and size. Besides, the UAE is the perfect platform for creating international business in different countries.