- July 21, 2020
- Posted by: DBS Editorial Team
- Categories: Business Setup Services in Dubai, Company Formation in Dubai
The UAE has been a major attraction for capitalists around the world and is known for its natural possessions. The charisma towards the region has been forever! The UAE is also known to hold enormous revenue from oil reservoirs and fossil fuel. Nevertheless, with recent shift in the economy and diversification modules – the seven emirates – Abu Dhabi, Dubai, Sharjah, Ras Al Khaimah, Ajman, Fujairah and Umm Al Quwain have become dynamic destinations for businessmen. The various Emirates create a lucrative market offering several business opportunities.
The UAE has formed a contemporary approach towards new ventures – be it petroleum or natural gas production, trade or tourism, shipping or aviation, construction or booming real estate. Moreover, the pro-business government in the UAE makes setting up a company further easier and affordable.
But what are the features contributing to the enormous growth in the region? And why businessmen prefer to start their business in the UAE? Let’s find out!
Why start a business in the UAE?
Business setup in the United Arab Emirates is not just limited to oil and petroleum. The UAE has renowned for its successful economic diversification – which is one of the major reasons why businessmen prefer to start a business in the UAE.
Setting up a company in UAE preferred also because it boosts the SME’s and start-up companies. Consequently, increasing the overall GDP of the country. The rapid growth in the economic structure and added government support makes business setup in the UAE even more desirable.
Here are the top 3 motives why entrepreneurs want to start a business in the UAE –
UAE Tax Advantages
The prime advantage towards having a business setup in UAE is that it gives a tax advantageous environment. The UAE does not charge income tax on individuals. However, it charges corporate tax on oil companies and foreign banks. Excise tax is charged on specific goods and VAT is only charged at 5% way low compared to other countries in the world. Moreover, commercial entities and companies can apply for tax refund and reclaim the tax expenses. This makes company setup in the UAE advantageous.
100% Company Ownership in Mainland
The much-awaited 100% foreign ownership to start a business in UAE mainland is now allowed as per Cabinet Resolution No. 16 of 2020 determines the positive list. New 100% FDI businesses setup under the FDI Law and their latest resolution can be formed under the Limited Liability Company (LLC) or a private joint stock company legal structure.
The UAE has released the full list of 122 categories for 100 per cent ownership in the mainland under the FDI law. Various sectors are part of the list from manufacturing goods to agriculture and construction; from transport and storage to hospitality and food services. Even IT, communications, science, education, entertainment and healthcare are also the part of the list.
Free zones in the United Arab Emirates
A Free zone business setup has a special economic jurisdiction that makes it one of the most viable option for the entrepreneurs start their business in the UAE market. UAE free zone are an initiative by the UAE government to encourage foreign investors setup their businesses. Free zones aimed to allow setting up of businesses in Dubai without having to deal with governmental formalities.
There are various advantages as well as limitations of free zone business setup in the UAE. To name a few free zone company formations offers 100% tax free business, 100% foreign ownership, 100% returns on capital and profits, no import and export duties, inexpensive resources, competitive labour costs and recruitment procedures, no constrains on work operations, etc.
Contact DBS Business Setup to start a business in the UAE –
Want to start a company in the United Arab Emirates? Speak to our experts at DBS Business Setup today!
DBS Business Setup works in accordance with the Department of Economic Development and offers complete guidance on setting up a business in the United Arab Emirates.
For more details book your free consultation https://www.dubaibusinessservices.com/contact-us/ You may also call us on +97145667485 or WhatsApp +971555813673 to request a call back.