If UAE is the destination for your next business venture, you have reasons to celebrate. You can now run a profitable business set in this country and spend some productive years of your life working hard.
The business setup in UAE is booming because of the environment and culture. Although conventional, the country offers different facilities and privileges to foreigners who want to contribute to UAE’s economy.
Noted below are 7 good reasons to setup your business in the UAE:
#1: The Flourishing Economy
The trade regime of the UAE is liberal. Over the last four decades, the UAE boasted an open and generous economy with a higher trade surplus as well as great per capita income. Companies from different parts of the world shifted their bases to the UAE to open offshore companies. As of now, the UAE houses many start-ups as well as multi-million dollar businesses.
The emirates is a wealthy state, offering stable financial conditions to companies, thus leading to huge foreign capital inflow in the region. It is only making their economy much stronger over time.
#2: Legal Structure
The government of UAE is aiming to bring in more foreign investors to boost their economy. To ensure this can be achieved, they also revised the legal structure of foreign investors waiting to start their own business. Besides criminal law, there are new rules solely for foreign investors. Keeping minimal red tape, all the legalities are fast-tracked. Minimal documentation is needed. Registration and licensing procedures are also very simple.
#3: Features and Infrastructure
The government of UAE ensures that foreign investors do not face any trouble when they setup a business in the country. As a result, the country provides a world-class infrastructure with amenities like office spaces, business parks, transportation, warehousing, utilities, and connectivity.
It is a fact that every year workers embark on their journey to the UAE with the hope of making some money. Especially skilled as well as unskilled labourers from south-eastern countries and India flock to the country. As a result, companies are assured of a robust workforce to run the business even in this foreign country. Moreover, since the country follows a strict low tax regime, wages are generally higher than in other countries, which also makes the UAE a favourable destination for employees.
#5: Tax Exemption
Before starting a business in a foreign land, the head of an organisation always worries about the tax system of the country. It is important to manoeuvre the business to make sure taxes are minimum. The UAE has different patterns of business ownerships with varied tax categories. A small example is the “free zone” that features 100% tax exemption. With 0% income and corporate tax rebate and 30% rebate on TV production and international films, it’s a good environment. Any business can maintain a good profit margin without paying income/business tax. However, the only rule is to register the company under the free zone.
All in All
The strategic location of the UAE, its global position, and liberal tax laws make it a perfect destination for new business ventures and investment. Especially, foreign investors find it increasingly easier and convenient to start their business setup in the Middle East.