The United Arab Emirates is made up of seven independent regions known as the Emirates. Each emirate is unique in its own way and offers its own characteristics and advantages for setting up a business.
We take a look at the various advantages associated with company formation in the UAE.
• World Trade Center
The UAE practices a culture of free trade with its trading partners. The average duty rate for goods entering the UAE is 5%, but the country is replete with free zones that offer incentives such as duty and tax exemptions. The UAE’s open borders foreign labor policy is an added bonus for private sector companies, allowing them to hire expatriate employees at internationally competitive salaries.
• Strategic location of the country
Strategically located on the new Southern Silk Road between Asia, Europe and Africa, the UAE enjoys excellent trading conditions. The various countries and regions that are in constant business relationship with the UAE and use it to reach the world are:
China (uses the United Arab Emirates to reach Africa)
India (uses the United Arab Emirates to reach the rest of the world)
Latin America (uses the United Arab Emirates to reach South Asia)
Western countries (uses the United Arab Emirates as a hub for the Middle East)
• Low import duties
Most of the goods and articles that are imported into the UAE enjoy extremely low import duties. Added to this, goods imported into free zones are completely exempt from import duties.
• 0% Corporate and Personal Taxes
Companies in Dubai or UAE free zones are not required to pay corporate or personal taxes and enjoy 100% repatriation of profits and capital. This favorable tax framework was highlighted in a study called Paying Taxes 2013 carried out by the World Bank, the International Finance Corporation and PricewaterhouseCoopers.
• No double taxation
To avoid double taxation of foreign companies, the UAE has signed Double Taxation Agreements with many countries around the world.
• Strong and competitive economy
In a 2013 Index of Economic Freedom ranking, compiled by the Heritage Foundation in association with the Wall Street Journal, the UAE’s economy ranked 3rd out of 15 Arab countries and 28th out of 185 nations worldwide. Thanks to the UAE’s transparent and favorable business climate and highly stable political climate, companies can enjoy a highly dynamic and progressive environment.
• High level infrastructure
The rapid economic progress in the UAE has inspired a massive push in the construction of residential, tourism and commercial facilities across the country. This is in addition to the continuous development of infrastructure facilities such as Al Maktoum International Airport, free trade zones, ports, etc.