The UAE is one of the wealthiest and most stable countries in the world, which offers unique business opportunities. According to the Doing Business rating, this country is in 11th place (out of 190 countries) in terms of easiness of doing business, and in the ranking of tax paying easiness, it is among the top 3! There is no bureaucracy and corruption in this country, which makes it attractive to investors.


In addition, the UAE is comfortable for living: the social sphere and medicine are well developed here, and it is a safe country with a low crime rate.

UAE benefits as a business jurisdiction


Taxation 0%!


In the UAE, there is no income tax for the majority of companies. It is payable only by enterprises in the oil and gas industry, as well as banking and hotel sectors. Since January 1, 2018, VAT has been introduced here. However, it is only payable if the company either operates in the domestic market of the UAE, or if it imports goods into this country.

Free economic zones.


In the UAE, there are more than 3 dozen free economic zones (FEZs) in which companies are exempt from taxes. However, such companies must obtain a license that is not cheap. This license must be updated annually. If such a company imports goods into the territory of the FEZ, it does not pay any duties. If a company imports into the territory of the UAE, it will have to pay 5% of the declared value of the imported goods.


Companies in free zones may operate around the world, as well as in the territory of SEZ. Unlike a local company, a legal entity in the free zone can belong to a resident of any country. Another advantage of such a company is that its owner, his family, and some employees can get a "resident visa", which permits living in the UAE.


International Business Company (IBC) in the UAE.


In the United Arab Emirates, there are several zones where you can register an offshore company. Such companies can operate anywhere in the world, except for the UAE.


Local companies in the UAE.


A company established in the UAE outside the SEZ or offshore zone will be considered a local company. Such legal entities can operate both abroad and in the country of registration without any restrictions. However, the disadvantage of the firms of this type is that at least 51% of their shares should belong to a citizen of the UAE. In addition, such a company must submit reports to the tax authorities.


Restrictions on certain activities for companies.


A company in the UAE cannot do business related to banking, insurance, reinsurance, and financial activities. Such activities require a special license.