Business setting up in the UAE is a unique opportunity to run commercial activity in conditions of complete economical and political stability. The Emirates present one of the unique examples of countries combining wonderful life conditions for expatriates (safety, high life level, relatively comfortable climate, etc.) with very comfortable environment for business running (presence of special free economic areas, almost complete absence of taxation, well-developed business infrastructure, etc.) and wealthy state possessing immense natural and financial resources. Liberal laws and support of the progressive government, possessing clear vision of Dubai development strategy, create profitable conditions for business development. According to the report, prepared jointly by World Bank Group, world biggest international enterprises network, offering professional consulting and audit services, PricewaterhouseCoopers (PwC) and International Finance Corporation, the taxation system of the United Arab Emirates is one of the most attractive ones for business and is rated as the 4th best one in the world. Just in May 2012 DED granted companies and organizations with 1542 licenses on business running. For the identical period a year before this index was 14% less. Increase in number of licenses granted indicates high interest of businessmen and investors in running commercial and professional activity in Dubai. General number of transactions referring to business registration and licensing increased by 22% and made 54 286. For comparison, in May 2011 this indicator was 44 492. The number of reserved trade names increased by 37% and reached 6010 in May. The UAE is the country with leading amount of free economic areas (FEA) in the Middle East. FEA play key role in attracting foreign investments. In the UAE, business, whether in Dubai or any other emirate, is the most attractive and efficient in FEA. Dubai taxation policy is aimed at money attracting, which is in the majority of cases big money. One of Dubai peculiarities is presence of about 30 free economic areas (FEA), perfect for business taxation policy, absence of currency control and having perfectly built logistic system. Enterprises with foreign capital in free economic areas are provided with rather extensive opportunities. The majority of international companies, designated among the world biggest ones running their principal activity outside Dubai, have representations in Dubai. In FEA foreigners can open a company with 100% ownership of capital. Companies registered in free economic area, are exempt from taxes and custom duties of all types, including export-import tax on goods and services. They are provided with opportunity of complete and non-taxable capital repatriation. Business setting up in the UAE also enables to maximum extent minimize production expenditures, enables to find out new possibilities in working with regional markets, possibilities of moving part of production chain to free economic areas with absence of taxation and cheap labor force. The UAE powerful logistic infrastructure can be efficiently used in work in the international markets. Nowadays tens of thousands of different foreign companies are registered in the UAE FEA. Due to them, immense amounts of foreign investments are attracted into the country – businessmen from various countries invest in commercial real estate items as well as in residential ones, and also in creation of new productions and services the UAE. This is why the UAE government is interested in business opening in the Emirates by foreign investors, and consequently the UAE government does its best to support further development of free economic areas. Nowadays more than 78% of non-rough products export is conducted in FEA. The "Dubai Airport Free Zone" (DAFZA) free economic area was rated as the world best one in 2012. It headed the Global Free Zone Rankings global rating list, presented by the Foreign Direct Investment Magazine business journal published by The Financial Times. The rating reflects DAFZA ability to attract foreign investments into the region, as well as its strong positions as of a fast-growing business centre in the Middle East. DAFZA is perfect for high tech IT field, light and pharmaceutical industries, luxuries, jewellery and watch production. Not long ago, the first in the UAE Dubai Flower Centre (DFC) started functioning successfully in DAFZA, which is able to process and send around the world up to 180 000 tons of “BB” category cargos (fresh flowers, fruit, vegetables, berries, etc.) per day. The free economic area of Dubai international Airport was granted a prestigious certificate ISO 20000:2005. This certificate enables FEA of Dubai international Airport – DAFZA – make their services more transparent and handy for users, maintain their correspondence with international technological standards, thus attracting new foreign investments to Dubai. Jebel Ali Free Zone (JAFZA), founded in 1985, is nowadays one of the biggest and the fastest-growing FEA in the world. On its territory more than 6400 companies have been located, 120 of which are the biggest in the world. Economic area JAFZA is the only free economic area located between two logistic centers. Having at disposal a 6-lane highway, JAFZA economic area is able to warrant goods transportation (liable to custom clearance) from marine to air center in some 20 minutes. JAFZA economic area is located in such a handy way as to provide their partners with the quickest possible access to the market, involving more than 2 billion people in the Southern and Eastern Asia, the CIS countries and Africa. On the territory of this FEA one of the biggest seaside ports, Jebel Ali Port, is to be found; Al Maktoum International airport, opened in June 2010, is situated in close proximity. Jebel Ali Port is a flag port of DP World Company. DP World Company is one of the world biggest marine cargo operators.Regarding the results of the first six months of 2012, the goods turnover of more than 60 DP World port terminals increased by 7,5% - up to 28,2 million containers in the equivalent 20-feet amount (TEU). According to the operator’s report, the high rates were caused by expansion of terminals in Asia-Pacific Region by 12,1% - up to 13,3 million containers. Turnover of DP World terminals, located in Europe, in the Middle East and in Africa, increased in the first half year in total by 3,2%, reaching 11,6 million containers. Meanwhile, more than half of them (6,6 million containers) were processed in the emirate Jebel Ali Port, which reached beyond rates for the identical period a year before by 7,3%. Jebel Ali Free Zone - Jafza, as well as other FEA, offers for foreign companies opportunity of possessing 100% of their company without local sponsors, 0% corporate tax for 50 years, absence of limitations on capital transfer and company income, 0% customs expenditures (import, re-export), 0% income duty, absence of currency limitations and limitations concerning employment of foreigners. Despite offshore business controversial reputation, its popularity does not decrease. Are there such people who would not like to legally lighten the burden of taxation and protect their material assets from any financial or political threats, without considerable expenditures? This is where offshore company comes in handy providing access to politically and economically stable jurisdictions. Indisputably, this is an immense advantage for the dwellers of regions with expropriation risk, where the assets can be frozen, arrested or even disappear, for instance, during economic crisis. Furthermore, the majority of the offshore jurisdictions provide beneficiaries with complete confidence, i.e. address directly to the company owners benefiting from its activity. Conventional offshore companies cannot be managed from the territory which is not their registration address (otherwise, as a rule, taxation on the territory of the country of incorporation arises). For this reason, approach of residential status determination not on grounds of country of incorporation, but under the principle of country, from where actual management is conducted, can often be applied to conventional offshore companies, which causes considerable taxation risks in interaction with tax authorities of different countries. In case the company was registered in the UAE, there are no such risks, as the company with correctly organized business processes is able to prove its residential status in the UAE without any taxation consequences on the UAE territory due to absence of taxation in the country. Unlike many offshore centers, Dubai has never been “blacklisted" by FATF and Organization for Economic Cooperation. There is also a number of reasons, explaining growing popularity of real estate registration by means of offshore companies. If your property legally belongs to an offshore company in the JAFZA free economic area, you (as well as your family members or partners) can own company stocks in accordance with tenancy in common or on the basis of preference. Your name (physical person) will be replaced with the company name (corporate person) in the Title Deed. This is the easiest way for joint investment, furthermore adding confidence to tenure. Serious business in the Emirates requires serious attitude. We help our clients set up efficient business in the UAE and warrant high quality of services provided. Our advantages – perfect knowledge of the local legislation, client-oriented approach and the widest possible range of services.
We provide our clients with a wide range of services on business organization in the UAE:
- company registration in the UAE free economic areas, offshore company registration. Having understood your wishes, as well as having found out aims and objectives of your business in the UAE we shall offer you the most suitable type of company registration and structure. Our specialists will provide assistance in opening a company in the UAE with minimal expenditure and running your business in the country with maximum efficiency.
- registration of companies enlisting a local partner (limited liability company) in the UAE
- opening of bank accounts in the UAE for physical and corporate persons. Company registration in the UAE is just one of many possibilities. We also open personal and corporate bank accounts for our clients.
- assisting and managing companies in the UAE. Regardless of place of incorporation we provide our clients with legal support, and also provide services in further assisting and managing companies. We appreciate our clients’ time, thus we provide each of them with client-oriented approach.
Our specialists will help complete resident visas for company owners and employees, and in the case of necessity, will provide assistance in certification and witnessing of necessary documentation.
Company registration in the UAE is not only easy but also profitable. Our specialists arecompetent in all the issues: Neither any legal niceties of the UAE legislation nor language barrier are an obstacle for them. We warrant accurate meeting of deadlines and appropriate legal implementation of our client commitments. Business setting up in the UAE in a free economic area enables you to obtain full-fledged resident corporate person in the UAE, possessing all range of offshore company rights. It is highly prestigious to run a business in Dubai!
Written by Strategic Technology Solutions