TOP 6 reasons to start a business in the UAE
The economy of the Arab Emirates was growing before our eyes; in several decades this state turned into a power with large oil reserves and a favorable economic environment. The country has everything for successful business development. The government provides such an opportunity not only to local entrepreneurs, but also to foreigners. Many businessmen seek to organize business in the Emirates. In the article we will tell you about the top 6 reasons why it is worth registering a company in the UAE.
Why businessmen strive to open a business in the UAE
More than 60,000 companies are registered in the Free economic Zones (FEZ) of the Emirates. The Dubai Economic Department issued 55,000 licenses in just 10 months of 2021. Not only global brands, but also small firms want to enter the UAE market because there are prospects for their development in the state. Let's analyze the advantages by points.
Developed infrastructure
The Emirates are halfway between the production and financial routes of the Far East and Europe. This makes the state an international economic center. Local ports are among the top ten in the world, annually passing more than 3 million units of cargo.
There are 7 international airports in the country, which ensures a constant flow of visitors. Basically, these are people who come in search of work and tourists. They provide a consumer and labour market.
The developed infrastructure contributes to the development and scaling of any business. Sea and air ports, office centers-skyscrapers, solvent members of society - this is what investors pay attention to.
There are 7 international airports in the country, which ensures a constant flow of visitors. Basically, these are people who come in search of work and tourists. They provide a consumer and labour market.
The developed infrastructure contributes to the development and scaling of any business. Sea and air ports, office centers-skyscrapers, solvent members of society - this is what investors pay attention to.
Economic and political stability
A few factors confirming the stability of the state:
The government is loyal to foreign entrepreneurs and does not create any obstacles to the development of their companies.
- the local currency, the dirhams, is linked to the US dollar, but its exchange rate has not changed since 1971;
- even at the beginning of the coronavirus pandemic, direct investment growth was 44% (2020), and in the rest of the world it fell sharply;
- the financial institutions of the state are stable, the entry and withdrawal of capital is free, there is no currency control.
The government is loyal to foreign entrepreneurs and does not create any obstacles to the development of their companies.
Free economic zones
FEZ is a limited territory with a certain legal status in relation to the rest of the territories of the state. It is expressed by preferential tax conditions for national and foreign businessmen. If you start a business in the UAE, you will not have to pay taxes on income, capital gains, property, wages. VAT on the sale of goods to countries that are not part of the Persian Gulf region is 0%. The company has the opportunity to save money already at the start of development. Due to the absence of many taxes, this benefit becomes greater over time.
However, there are still taxes in the state. Foreign banks and enterprises in the oil and gas industry are subject to taxation. But not every businessman will risk entering the market, thanks to which the state has risen and is holding on. That’s why foreign entrepreneurs are trying to take a place in other areas of business.
Registration of a company in the UAE allows you to obtain tax residency. Recognition as a resident reduces the tax burden, allows you to increase the profitability of your business.
However, there are still taxes in the state. Foreign banks and enterprises in the oil and gas industry are subject to taxation. But not every businessman will risk entering the market, thanks to which the state has risen and is holding on. That’s why foreign entrepreneurs are trying to take a place in other areas of business.
Registration of a company in the UAE allows you to obtain tax residency. Recognition as a resident reduces the tax burden, allows you to increase the profitability of your business.
How much does it cost to open a company in the UAE?
Possible options for registering a business in the UAE
Registration of a company in the UAE with obtaining a license
$3000
Obtaining a resident visa
$1300
Opening a bank account
$3000
Safety
The UAE is not only famous for a high standard of living, but also security. The Emirates are among the TOP countries with the lowest crime rate. This is due to the fact that the state has strict laws. The commission of a crime provides for the strictest punishment, and the police perform their duties well.
All business in the United Arab Emirates is subject to the laws established by the rules. In order not to violate the law, you need to familiarize yourself with all the requirements. A committed offense can lead to serious problems.
All business in the United Arab Emirates is subject to the laws established by the rules. In order not to violate the law, you need to familiarize yourself with all the requirements. A committed offense can lead to serious problems.
Global Networking Center
A large number of conferences, seminars and exhibitions are held annually in the Emirates. Businessmen from all over the world visit them. This allows you not only to gain new knowledge, expand your horizons, but also to acquire useful acquaintances, connections, which will benefit the development of the company.
Lack of bureaucracy and corruption
The UAE is a state that has been able to eliminate corruption and bureaucracy. This gives equal opportunities for all entrepreneurs. In order to succeed, you do not need to pay bribes so that business in the Emirates flourishes. If an entrepreneur can make a profitable offer for consumers, he will have every chance to turn the company into a major global brand.
Business in the United Arab Emirates is a prospect for an entrepreneur. But it should be borne in mind that this is an Arab state with its own rules, laws and requirements. The organization of entrepreneurial activity is accompanied by nuances. For example, if you are absent from the state for more than six months, the resident visa will become invalid, etc.
Advice! If you plan to enter the UAE market, contact professionals who will help you register a business in the Emirates, tell you about all the nuances and features, and prevent mistakes. Contact our company for this and we will help you get approval for registration, organize everything without wasting your own nerves, energy and time. Leave a request for a free consultation below!
Business in the United Arab Emirates is a prospect for an entrepreneur. But it should be borne in mind that this is an Arab state with its own rules, laws and requirements. The organization of entrepreneurial activity is accompanied by nuances. For example, if you are absent from the state for more than six months, the resident visa will become invalid, etc.
Advice! If you plan to enter the UAE market, contact professionals who will help you register a business in the Emirates, tell you about all the nuances and features, and prevent mistakes. Contact our company for this and we will help you get approval for registration, organize everything without wasting your own nerves, energy and time. Leave a request for a free consultation below!
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