The United Arab Emirates comprises of seven independent regions often known as Emirates. Each Emirate is exclusive in its own way and offers its own features and advantages for organising a business.
We take a take a look at the assorted benefits related to company formation within the UAE.
• Global trade hub
UAE practises a culture of open and free trade with its trading partners. The typical tariff rate for goods entering UAE is 5%, however the country is filled with free zones that supply incentives like tax and duty exemptions. UAE’s open border foreign labour policy is an added bonus for personal sector corporations, allowing them to recruit expatriate employees at internationally competitive wages.
• Strategic location of the country
Positioned strategically on the brand new Southern Silk Road between Asia, Europe and Africa, the UAE enjoys excellent trading conditions. The varied countries and regions which might be in constant business relations with the UAE, and use it reach out to the world are:
China (uses UAE to achieve Africa)
India (uses UAE to achieve out to the remainder of the world)
Latin America (uses UAE to achieve South Asia)
Western countries (uses UAE as a hub for the Middle East)
• Low import duties
Most goods and items which might be imported into the UAE enjoy extremely low import duties. So as to add to this, goods imported into free trade zones are completely exempt from import duties.
• 0% Corporate and Personal Taxes
Corporations in Dubai or UAE’s free zones are required to pay no corporate and private taxes and luxuriate in 100% repatriation of profit and capital. This favourable tax framework was highlighted in a study called Paying Taxes 2013 performed by the World Bank, International Financial Corporation and PricewaterhouseCoopers.
• No double taxation
With a purpose to avoid double taxation of foreign corporations, the UAE has signed Double Taxation Agreements with many countries the world over.
• Strong and competitive economy
In a rating of the Index of Economic Freedom 2013, prepared by the Heritage Foundation in partnership with the Wall Street Journal, the economy of UAE was ranked third amongst 15 Arab countries and twenty eighth amongst 185 nations worldwide. Due to UAE’s transparent and favourable business climate and highly stable political climate, businesses are in a position to enjoy a highly dynamic and progressive environment.
• High level infrastructure
Rapid economic progress within the UAE has inspired an enormous boost in the development of residential, tourism and business facilities across the country. That is along with the on-going development of infrastructural facilities just like the Al Maktoum International Airport, free trade zones, ports etc.
