In many countries, government provides the various subsidies and benefits to support business, especially at the initial stages.
Such benefits include, for example, loans at the reduced rates or, what is also sometimes applicable, the reduced regime of taxation, which are provided for the first 1-3 years of the company activities.
We are often asked about what kind of business support is provided by the government in Dubai, the UAE. In Dubai, the UAE such support of business has very favorable and attractive conditions. Besides, such support has not one-off or time-limited character, but is available for the very long period of time. At the same time, the type of the business support in the UAE is fundamentally different from that, what is offered by other countries.
The most important support for business is the exemption from almost all the types of taxes, which is applicable to the companies registered in the free trade zones of the UAE. Such companies do not pay customs duties on import and export of goods, and neither VAT nor corporate tax.
The second important form of business support is the absence of various fees and charges on salaries of employees. It is very important for any business, as in the majority of the developed countries, which have the development and infrastructure comparable with the UAE’s one, such costs often reach the amount comparable to the main amount of salaries paid. Thus such benefit is the very considerable support for the business.
The third form of business support is the legal framework, which regulates the relations between the company and its employees. If the employee in the company in the UAE does not meet the requirements of the company – his replacement to another employee requires much less costs and time in comparison with the other developed countries. In addition, if employees receive awards and bonuses for the successful work – such payments are exempted from taxes. Isn’t it an incentive for productive work?
Another form of support for business in the UAE is the low costs of electricity and fuel for transportation. It becomes the very considerable help and support for those areas of business, where the total expenditure component of the energy is an important element.
The availability of ultra-modern infrastructure is also the direct support for business. How to develop business if there are no appropriate premises, roads, communications and etc.? In the Emirates all these elements are available with the best quality.
And one more important parameter is the security. The United Arab Emirates provides the highest level of security in the world, and it is the direct support and assistance to business, as there is no need to create one own complicated and expensive system of security and safety, what can be a very costly part.
And the last but not least is that the country, at all levels of government programs and incentives, openly welcomes and supports almost any kind of business!