The United Arab Emirates is considered one of the most stable business environments and is among the top 3 leaders in terms of GDP among Arab countries, so many investors from all over the world seek to open their company here.
The UAE government supports entrepreneurs in every possible way, from providing privileges when doing business to issuing resident visas and UAE company register remotely.
Advantages of starting a business in the UAE
Let us note the main advantages of establishing a company in the United Arab Emirates:
- Tax privileges - in an FEZ (Free Economic Zone), there are no taxes on income, personal profits, and dividends, and in the rest of the country, the income tax is only 9%;
- Banking services - UAE banks are considered one of the most reliable in the world. Having opened a company, you will be able to use the services of banks in full, for example, open corporate accounts;
- Obtaining UAE resident status - a business opened in the Emirates makes it possible to obtain a long-term resident visa (analogous to a residence permit) not only for the owner of the company but also for his family and employees;
- Transparent rules for starting a business - in the UAE, all regulations are strictly observed, and the state protects the rights of entrepreneurs;
- Remote processing of documents - at the stage of establishing a company and obtaining an entry visa, there is no need to be in the UAE;
- Government support - the authorities are investing a huge amount of money in areas such as IT, medicine, engineering, and innovation, protecting investments and also trying to reduce the number of requirements for entrepreneurs when starting a business;
- Stable economy of the UAE - even in the context of a pandemic and military-political events taking place in the world, the Emirates is confidently expanding its economy, the number of FDI (foreign direct investment) has increased by 4% since 2020 and continues to grow.
Organizational and legal forms of companies in the UAE
In the UAE, companies that can be registered are divided into local (can operate in the Emirates) and offshore (cannot operate in the Emirates).
The most popular legal forms of local companies in the UAE are presented below:
- Limited Liability Company. Members of the company do not bear personal property liability for the company’s obligations but are liable for them only to the extent of the contribution made. If such a company is registered, at least 51% of the shares must belong to shareholders who are UAE citizens.
- A company opened in the UAE's free zone has some features that depend on which specific SEZ it is registered in. Also, companies in FEZs can be created with absolute foreign participation.
When it comes to offshore companies, it should be noted that they must operate outside the UAE and usually act as holding companies. At the same time, a company registered in a free economic zone is an excellent alternative to offshore. Depending on the chosen free zone, such a company may offer attractive tax conditions, the opportunity to conduct business in the UAE, and open an account in a local bank. An offshore company has a number of restrictions and, as mentioned above, is best suited as a holding company.
