10 09 2020

Investor's choice. Company formation in the UAE

Investor's choice. Company formation in the UAE

Investors consider the UAE as one of the best places to register a business and open a bank account. First of all, thanks to the zero-tax policy.

The growth of a foreign investor's business may not depend in any way on government assistance. There are no taxes on corporate and personal income in the UAE. You will be able to withdraw profit from the country without any restrictions.

It is worth noting that there is a VAT of 5%, but you only need to pay it if you are selling on the UAE's domestic market. If the activity is carried out on the international market, then VAT is not required.

There are a number of options for investors by campaign type:

Investors can set up business in the UAE using various options, for example:

- Registration of a company within one of the fifty Free Economic Zones of the Arab Emirates;

- Register a company in the United Arab Emirates, but outside the FEZ;

- Register an offshore company.

The majority of investors prefer to open a company within the FEZ.

What are the benefits of registering a company in the UAE?

For foreign investors who come from countries with large tax liabilities, the United Arab Emirates is a kind of tax haven.

Investors, having registered a company, have the right to open a bank account and the right to conduct unlimited financial transactions.

Thanks to the work of the authorities to conclude agreements on double taxation with many countries of the world, a foreign investor can avoid double tax on official grounds.

A number of advantages for a company established in the FEZ of the Arab Emirates:

- A foreign investor is entitled to a 100% stake in the company;

- Repatriation of profits by 100%;

- Lack of customs duties;

- High level of confidentiality.

Most of the FEZs provide other opportunities, in addition to registering a company, renting office space, warehouses at low prices, as well as building your own facility.

In the difficult times of the spread of the COVID-19 virus infection, the government is strongly supporting small and medium-sized businesses by launching a series of economic stimulus packages.