Business in the UAE attracts the attention of a large number of investors from all over the world, since there are no taxes on income, personal income and on dividends in the UAE. Read in my article about the specifics of doing business and how to open a company in the UAE!
Understanding the unique features of starting and running a business in the United Arab Emirates will enable you to expand in the richest market in the world.
Why choose the UAE to open your company?
1) Political and economic stability
The UAE is characterized by the absence of inflation, stability, and a high level of domestic consumption
2) State support for foreign investors and the legal framework that protects the interests of business
3) High paying capacity of the population
High level of domestic consumption, annual growth of the wealthy population, demand for high quality goods and services.
4) Taxation system
When you open your company, you are guaranteed to have maximum profit without taxes. There are no taxes on personal income and corporate taxes in the country, with the exception of 5% VAT on a number of domestic transactions. A single tax and customs space, the presence of a free trade zone opens access to 1,000 million consumers in the Gulf countries.
5) Developed transport and logistics infrastructure
6) Lack of currency control, free deposit, withdrawal of capital
What should you pay attention to when opening a company in the UAE?
Choosing a zone
The choice of zone depends on the location of your target audience. To supply goods to the domestic market of the UAE, registration of a local company is required. When choosing a free economic zone, consider the requirements of each of them (audit reports, the size of the registration fee)
Having a registered company address is a prerequisite for obtaining a license. You can rent an office, conclude a lease agreement for premises in a business center, or rent a workplace (Flexi-desk) from a free economic zone. Flexi-desk is a workplace in the business center of the free economic zone for 16-20 hours a month. At the same time, the cost of renting Flexi-desk is 3-6 times less than the cost of an annual office rental, which is the best solution for a start-up business.
Choosing a license
Any business in the UAE is subject to licensing. You need to know the features and additional requirements for obtaining a license in the UAE.
The following types of licenses are available in the free economic zones of the UAE:
- General Trading License (allows trading a wide range of goods)
- Trading License (allows trading only those goods that are listed in the license)
- Industrial License
- License for the provision of services / ServiceLicense
What is the authorized capital required to open a company in UAE?
Typically, the standard share capital is AED 50,000. Depending on the type of activity, this amount can be an order of magnitude higher.
What is the taxation in the UAE?
There are no major corporate taxes in the UAE, but VAT is only 5%, which is significantly less than in most countries. If you are engaged in import and export, then you have the opportunity to reimburse the paid VAT. Also, your responsibilities will include the annual payment of a license fee, the amount of which varies from free economic zone to free economic zone.
Can you get a UAE visa if you are a company owner?
All business owners in the UAE are eligible to obtain resident visas. A huge advantage in the UAE’s immigration policy is that you can attract foreign workers based on work quotas that are issued by the Ministry of Labor.
To start a business in the UAE, it is necessary to analyze the legislation and check the needs of the market. It is also important to ensure that you can obtain licenses and permits for the import of goods and find the most suitable business model for your purposes.
What do you think about starting a business in Dubai? Share your opinion in the comments below! I would be happy to answer any questions or submit your project to my team at Astorts Group for evaluation. Astorts Group will provide expert knowledge and provide comprehensive support for the start of your business.
Alessandro Rocco Pietrocola is an entrepreneur and investor based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, Middle East and New Zealand as area of interest! At the moment is the CEO of Astorts Group. He is an UK FCA (Financial Conduct Authority) Approved Person and is has great experience as director of regulated companies. He uses to dedicate part of his life to inspire others and help them achieve the most out of their life. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.