Every year the volume of international cargo traffic is increasing all over the world. The share of international traffic is becoming an increasingly important segment. In turn, most of the international cargo traffic is carried by sea due to a well-developed system of sea ports around the world, highly-developed port capacities and lower transportation costs compared to road and air transport.
The number of vessels in the commercial fleet is growing both in absolute number and in the maximum possible tonnage. For registration of commercial vessels in most cases flags of countries such as, for example, Panama, are used. And in case of use of fleet management companies in the Emirates the country of registration/flag of the vessel remains unchanged.
In this case there it is another core component of management of the international commercial fleet - the managing company that charters commercial vessels and manages and controls them. Such companies may differ significantly - from highly specialized companies which, for example, provide maintenance or crew to full package of services - charter, maintenance, security, crew, etc.
To create/register a managing company for commercial/merchant fleet, there are three most popular and commonly used jurisdictions – Hong-Hong, Singapore and Dubai. And if the first two jurisdictions are known to virtually all players of the commercial fleet market, Dubai is still not known to everybody. However, almost all large companies in the commercial fleet management, in one form or another, are already present in Dubai for several reasons.
Fist of all Dubai is one of the world's leading air and sea transport hubs. For this reason, inherently, any company engaged in commercial fleet and sea transport, definitely is present in the Emirates or operates over UAE.
The second component is that due to the aforementioned advantages, a large number of companies engaged in sea transport – logistics companies, ship owners, insurance companies, brokers, etc. operate in the Emirates, which means being in this country also provides new opportunities to work with these companies as partners to expand business.
The third component is tax advantages offered by the UAE to companies engaged in the management of international commercial fleet. Such companies, enjoying full tax residency in Dubai, a real office and staff in the UAE, are fully exempt from tax in the UAE.
For the aforementioned reasons Dubai is an attractive place where a growing number of sea transport / freight companies register and operate.If you need more info on how to open your company in Dubai – call or write us.