How Can I Start A Business In Dubai?
How Can I Start A Business In Dubai? – 5 Advantages Of Opening a Company in Dubai
Are you wondering, ‘How can I start a business in Dubai?’
If the answer is yes, then there are sure to be tax savings on the back of your mind.
This article contains 5 tips from the Unpublished Chapter of the book How To Make Your Tax Sexy.
The United Arab Emirates comprises of seven independent regions known as Emirates.
Each Emirate is unique in its own way and offers its own features and benefits for setting up a business.
Its most popular city of Dubai is an important global city and an international aviation hub.
Years ago no wise businessman would have thought twice about opening a company in Dubai.
The Dubai economy was not desirous for foreign investors, and actually all foreign business presence was shunned.
However, in more recent years with a huge cultural change that displayed the business sense that the Dubai government possessed, the free-trade gates were virtually thrown open.
Foreign invеѕtоrѕ were nоt оnlу gladly ассерtеd but аlѕо highly sought out.
The Dubai government correctly surmised that if they made the business climate incredibly attractive to the foreign business owner, both sides would benefit.
That is exactly what has happened and Dubai is now financially a world power.
We take a look at the various advantages associated with company formation in the Dubai.
- Global trade hub
Dubai practises a culture of open and free trade with its trading partners. The average tariff rate for goods entering Dubai is 5%, but the country is packed with free zones that offer incentives like tax and duty exemptions.
Dubai’s ореn border foreign labour policy is аn added bоnuѕ fоr рrivаtе ѕесtоr companies, allowing them to recruit expatriate employees at internationally competitive wages.
DAFZA is a free zone that is intended for businesses that specialize in exporting and importing goods.
The TECOM free zone permits business activities which include development design and use of all information technology, media and e-commerce.
There is also the Ajman free zone, Jebel Ali free zone and Sharjah free zone, just to name a few of the many different free zones set up specifically to service the individual and unique needs of the foreign investor.
- Low import duties
Being an open port with low import duties and no taxation, Dubai offers the good deal value. The majority of main branded products are regularly offered, and the best part is they can be inexpensive in Dubai than their originated countries.
Most goods and items that are imported into the Dubai/UAE enjoy extremely low import duties. To add to this, goods imported into free trade zones are completely exempt from import duties.
Located strategically on the new Southern Silk Road between Asia, Europe and Africa, the Dubai enjoys excellent trading conditions.
Learn More From The Unpublished Chapter Of How To Make Your Tax Sexy:
- 0% Corporate and Personal Taxes – No double taxation
Companies in Dubai free zones are required to pay no corporate and personal taxes and enjoy 100% repatriation of profit and capital.
This favourable tax framework was highlighted in a study called Paying Taxes 2013 performed by the World Bank, International Financial Corporation and PricewaterhouseCoopers.
There is another bonus here…
In order to avoid double taxation of foreign companies, Dubai/the UAE has signed Double Taxation Agreements with many countries across the world.
- Strong and competitive economy
In a ranking of the Index of Economic Freedom 2013, prepared by the Heritage Foundation in partnership with the Wall Street Journal, the economy of UAE was ranked 3rd among 15 Arab countries and 28th among 185 nations worldwide.
Thanks to UAE’s transparent and favourable business climate and highly stable political climate, businesses are able to enjoy a highly dynamic and progressive environment.
- High level infrastructure
Rapid economic progress in the UAE has inspired a massive boost in the construction of residential, tourism and commercial facilities across the country.
This is in addition to the on-going development of infrastructural facilities like the International Airports, free trade zones, ports, malls etc.
There are at least 2 major events – Expo 2020 and Dubai Wholesale City that is already attracting construction firms in hordes from all over the world.
In addition to massive investments in high-rise buildings and hotels, Dubai also plans to strengthen its infrastructure on a solid plane.
Dubаi rеmаinѕ оnе оf thе bеѕt рlасе to flеx уоur еntrерrеnеuriаl muѕсlеѕ, ѕеt uр a соmраnу, or open аn оffѕhоrе brаnсh.