UAE is a paradise for entrepreneurs, where dreams are cherished and ideas develop into thriving businesses. The country offers financial advantages, a supportive culture that recognizes creativity, rewards risks, and turn dreams into reality. As a global entrepreneurial phenomenon, UAE, specifically Dubai attracts visionaries from around the world, making it a popular destination for entrepreneurs seeking growth and opportunities.
In this blog, we will highlight 10 most prominent reasons to move your foreign business to the UAE. Are you are still confused? Just buckle up and skim down, you’ll be able to make an informed decision by the end of it.
Five benefits of moving foreign business to the UAE
Let’s explore the perks of relocating a foreign business to the UAE together.
Perfect location for all sorts of businesses
The UAE is located at the intersection of Europe, Asia, and Africa, is a gateway to the Middle East. With its advanced infrastructure and transportation system, it boasts the world’s third-largest airport and the largest passenger aircraft fleet. The Jebel Ali Port, the world’s 9th busiest seaport, is the largest man-made harbor and the busiest port in the Middle East. These facilities are beneficial for entrepreneurs, SME business owners, and executives, as they facilitate global communication and facilitate the movement of goods and people.
Government support at every step
Dubai officials have initiated numerous initiatives to support business incorporation. For example, industry-specific free zones, simplified visa and work permit processes, and support services like the Dubai International Financial Centre (DIFC).
The Dubai Future Accelerators program, designed to connect entrepreneurs with top-level government officials and the private sector, aims to develop visionary solutions to key challenges facing the city and scale faster in a potential market of 2 billion people. This program provides entrepreneurs with access to resources, networks, mentorship, and funding, enabling them to thrive in a potential market of 2 billion people.
Greater business opportunities
Relocating a foreign company to the UAE offers numerous business opportunities, including expansion and diversification. It provides legal basis for engaging in various activities and adapting to market changes. A business license in the UAE offers access to various services and support systems, such as business growth, legal consultancy, and corporate networking events.
It also improves business credibility by adhering to local regulations and standards, attracting clients, partners, and investors. Additionally, securing intellectual property is crucial for a foreign company’s success in the UAE.
Extremely low taxes
Dubai is attracting entrepreneurs due to its ability to maximize profits and save money on taxes. The UAE Ministry of Finance has introduced a 9% corporate tax rate for taxable income exceeding 375,000 UAE dirhams (around $102,000) and a zero-tax rate for taxable income up to 375,000. This allows small companies and startups to benefit from no taxes imposed on them.
However, free zone businesses will still have no taxes as long as they meet all necessary requirements. Despite the new corporate tax, Dubai remains one of the best countries for doing business. It ranks among low-tax hubs like Gibraltar, Ireland, Hong Kong, and Singapore, Montenegro, and Lichtenstein, and San Marino.
Peaceful and luxury lifestyle
Entrepreneurs often seek high-quality life and amenities in countries like UAE and Dubai. The UAE government prioritizes health and safety, making Dubai one of the safest cities globally. With a crime rate of 0.5 to 1 per 100,000 people, Dubai offers around 200 high-quality private schools and 26 international university branch campuses.
Private school tuition ranges from AED 1,725 to AED 107,000 per year. Dubai is also a top destination for entertainment and leisure, with numerous water parks, museums, theaters, theme parks, and world-class sporting events. The city also boasts beaches, parks, and golf courses.
Process to establish a foreign business in the UAE
Dubai’s business registration process is crucial for establishing a presence. The primary document required is a passport scan, serving as proof of identity. Additional documents, such as shareholder agreements, Memorandum of Association (MOA) and Articles of Association (AOA), and lease agreements. They are dependent on the type of business activity, jurisdiction, and legal structure chosen.
This process requires meticulous attention to detail and adherence to regulatory requirements. Whether, you’re a seasoned entrepreneur or just are starting your venture. The procedure is essential for shifting a foreign business to Dubai and the UAE.
Opening a bank account and getting a business license
Business setup and operation require understanding of essential rules, regulations, licensing, and other requirements. Bank accounts for commercial purposes can take two to four weeks, with required documents varying by bank and account type. The Business Manager must have their own residency visa before applying.
Businesses operating in the UAE require a trade or business license, which can be commercial, professional, or industrial. They can be established as a sole proprietorship, LLC, or branch office. Furthermore, they can be 100% foreign-owned if operating in a free trade zone.
Conclusion
The UAE, the 25th most competitive economy globally, is a key player in the MENA region, aiming to enhance its status by diversifying its national income. The country’s solid economy includes a strategic location, strong financial reserves, large sovereign wealth funds, healthy international relations. Also, it comes with consistent government spending on infrastructure, digital transformation, and increased foreign direct investments.
Dubai’s policies are driven by the UAE 2030 vision and the 2050 Net Zero Strategy. They are guiding this new era of political, economic, and social development. The country is open to international and regional trade, attracting top talent and investing in the digital economy.
The UAE manages a sustainable economy through advanced legislation, resource sustainability policies, and a stable financial system. The country offers a favorable business environment with excellent infrastructure, professional expertise, and personalized services.
Make your business relocation easy: Partner with a consultancy firm
Partnering with a reputable consultancy firm like KWS ME can streamline the company registration process, ensuring compliance with local regulations. They have extensive knowledge of legal requirements, documentation procedures, and submission protocols, expediting the process.
Experienced consultants at KWS Middle East can offer expert guidance on choosing the most suitable business structure based on specific requirements and industry growth objectives. The process typically takes 3 to 5 business days, allowing entrepreneurs to move on to the next steps. Transparent communication is maintained throughout the registration process.
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