When entrepreneurs and investors think about good places for business, the United Arab Emirates (UAE) is the first place that comes to their minds. Why? Because:
Not only it has a,
- Modern infrastructure
- A beautiful skyline
But it also has significant financial advantages that could make it the perfect destination for,
- Small and
- Medium-sized enterprises
- And international companies,
at the same time.
If you’re thinking about launching a new business or even expanding, let us advise you why the UAE could be the right place to start with great financial potential.
1. Zero Personal and Corporate Income Taxes
- One of the most attractive financial incentives in the UAE is its tax structure.
- In most cases, businesses that are operating in the UAE, particularly those based in the Free Zones, are liable to a 0% rate of corporate and personal income taxes.
It should be noted that the introduction of a corporate tax of 9% on business profits at the federal level in 2023 did not affect this situation so much as it is only applicable to those companies earning more than AED 375,000 per annum, another word that even small businesses and startups grow without any tax pressure first.
2. No charge for the foreign company
Formerly, the establishment of a business on the UAE mainland meant having a local sponsor. Nevertheless, given recent changes in the law, 100% foreign ownership of a wide range of businesses is now a legal possibility. This means that the company can be fully managed by you without a local partner, thus obtaining both financial and operational independence.
3. Free Zones with an array of financial Sunrise Sectors
The United Arab Emirates has a good many Free Zones spread throughout the country, all of which come with certain financial benefits like the following:
- Full tax immunities
- Freedom of capital and profits repatriation at 100% rate
- Zero limitations on currencies
- No tariffs when shipping products abroad
To establish a Free Zone is to also decrease the amount of paperwork required and to take advantage of the highly efficient business infrastructures globally.
4. Easy Access to Global Markets
Positioned strategically in the middle of Europe, Asia, and Africa, the UAE is, by far, the most connected through its,
- Ports
- Airports
- and Free Trade Agreements
This central location not only decreases transportation costs but also extends the market share to over two billion consumers, helping businesses scale faster and more affordably.
5. Stable Economy and Banking System
The UAE has a good economy which is strong and resilient and not overly dependent on oil. This is due to the fact that it is made up of various industries e.g.
- Tourism
- IT
- Finance
- Health & care, and
- Logistics.
Moreover, the country’s banking sector is still very much strong and solid therefore they can offer not only favourable business banking packages, but also support in the form of
- low-interest loans
- and multi-currency accounts,
which will be helpful in managing finances efficiently.
6. Low Import Duties and VAT
The UAE continues the tradition of maintaining low import duties (normally just 5%) and have also raised a low 5% VAT which is one of the lowest in the world. The purpose was to ensure that while the operation costs are kept relatively low, the money collected would make for a stable government revenue flow for the provision of top-notch infrastructure and services.
7. Attractive Incentives for Specific Industries
Various sectors, like:
- Green energy
- Healthcare
- Technological and
- Financial services,
receive support through incentives such as,
- Grants, and
- Subsidized office spaces
In addition, other funding opportunities can be obtained through
- Abu Dhabi’s Hub71 and
- Dubai Future Accelerators, etc.
Final Thoughts
The UAE is not only a place to spend your days in the sun and relax with the comfort of a luxurious lifestyle, rather it’s a corner where we will also work strategically in finance. It’s a paradise with many benefits such as
- Low taxes
- Free-flowing capital
- Global market access
- as well as a thorough government incentive program that a business can be successful and strong.
In case you are now set on leveraging new financial opportunities, the UAE is potentially the most fitting initial location you have been searching for.