UAE is one of the largest financial centers in the world. All conditions for doing business have been created in the country. Political and economic stability, flexible legislation every year attracts more and more foreign investments in the UAE. At the end of 2014 alone, 1,225 companies were registered in the UAE. The country is a prestigious jurisdiction, as evidenced by the absence of the UAE in the black lists of offshore companies.
Benefits of registering a company in the UAE
There is no corporate tax / personal income tax / dividend tax *;
There is no foreign exchange control;
Individuals or legal entities can be directors and shareholders;
There is no need to submit reports;
Closed register of companies (the name of the beneficial owner is not entered in the register);
The opportunity, when registering a company in the UAE, to obtain UAE resident visas for the owners and employees of the company, as well as for their family members;
Very fast company registration in some free zones;
Low cost of company registration;
The ability to rent a virtual office instead of a real office, or in general, in some cases, you can have a company without an office;
Ability to use the benefits of double taxation treaties;
No customs duties within the UAE free zones.
* exception: oil industry and banking sector.
The procedure for registering a company in the UAE
There are two ways to open a company in the UAE: registration of a free zone company and registration of a local company. Opening an offshore company in the Emirates is possible only in some free zones.
The opening of a local company in the United Arab Emirates is carried out outside the free zones.
A local company can conduct commercial activities both in the United Arab Emirates and abroad.
An offshore company can only carry out commercial activities outside the UAE.
Foreigners can own 100% of shares of “local” UAE companies from June 1, 2021. That is, foreigners, starting from June 1, 2021, will no longer need a UAE citizen as a “local” shareholder to own “local” UAE companies.
In the free economic zone DMCC, you can create a company in the UAE without visiting the United Arab Emirates. If a DMCC company trades within the DMCC or outside the UAE, then the company will not have to pay VAT in the United Arab Emirates. The time to open a DMCC company is approximately 15-25 business days.
Tax
In the UAE, there are no taxes on corporate and personal income, as well as taxes on dividends.
Since January 1, 2018, the VAT in the UAE is 5%. However, for the export of goods and services, as well as for international passenger or freight transport and for transactions with residential real estate, a zero VAT rate is applied.