There are many benefits to relocating your business activities to the UAE, in particular the Emirate of Dubai. With a low corporate taxation rate and no personal income tax, the unparalleled security, excellent infrastructure, political stability and the availability of well-educated/experienced employees make a strong case for many European, Asian and American companies to set up shop in Dubai.
In the great tradition of the Silk Road, the unique location of Dubai at the crossroads between Europe and Asia allows international businesses to flourish. Due to the ethnic diversity of the business community in Dubai, new contacts between Asia, Europe and South America can be built easily.
Dubai is one of seven Emirates in the United Arab Emirates. Dubai has grown immensely over the last two decades. It is a thriving business center, and one of the fastest-growing cities in the world. Gone are the days when Dubai and the UAE was only a center for oil & gas related businesses.
The economy of the UAE as a whole is growing fast, currently at 5.5% and is now very diverse. Dubai has set up a number of Free Trade Zones where business friendly laws apply and business sectors are brought together, further improving the synergy of new business opportunities.
The legal framework in the trade zones is inspired by EU and United Kingdom legal concepts and provides the foreign investor with the confidence that their investment is safe. There are no restrictions on the transfer of funds in and out of Dubai. There are no fees on the return of capital out of Dubai.
The growth of Dubai has proceeded independent from developments in the US or Europe.
Trade restrictions are almost unknown, and obtaining a business visa is an uncomplicated and cost-efficient procedure. Perhaps one of the most impressive features of doing business in Dubai is its administrative efficiency. It is truly impressive to see how quickly and unbureaucratically administrative matters are handled in Dubai. The government communicates with the public through the app WhatsApp and UAE Pass, and information is cross shared between the various branches of government.
With the exception of the increased reciprocity and legal cooperation between the courts of England and Wales and the UAE, another benefit of doing business in Dubai is the very limited enforcement of foreign judgments in the UAE. This may be an asset protection tool for some clients.
There are also new residential developments which have been built to the highest construction standards in close proximity to the Gulf waterfront. These residential communities are known to retain their value despite market fluctuations. In summary, Dubai is a great place to set up your business, whether it is small or large, new or already established elsewhere.
In order to fully capitalize on the opportunities in Dubai and the UAE, a foreign business needs the assistance of an experienced law firm. The international business law firm Urban Thier & Federer maintains an office in Dubai, with an additional presence in the capital, Abu Dhabi. UTF is in a position to assist European and American businesses and their investors once they have decided to do business in Dubai, respectively the UAE.
In a first step, UTF will assist the client in the setting up of an appropriate local company. Once this is established, we will guide the client through the visa application process. There is no minimum investment for the business visa. The government charges annual fees for the maintenance of the business, and business visas are connected to the ongoing existence of the company.
Another area where UTF can assist is with the establishment of a corporate and personal bank account. This can be a challenge, as banks in Dubai take KYC (“know your customer”) seriously. However, if guided through the process by local professionals, and all questions are answered satisfactorily, the process can be easily managed.
After the initial establishment of the business, UTF will guide its client through the establishment of business and trade agreements with local partners. It is of crucial importance to consider the tax consequences of the establishment of a business presence or an investment in other jurisdictions. Often, maintaining some presence in other jurisdictions can decrease the tax benefits of a Dubai presence. With careful planning, these effects can be minimized.
The experts of UTF in the US and European offices work closely with their UTF colleagues in Dubai to optimize taxation for its clients. UTF also maintains the services of excellent tax consultancies in the UAE and can efficiently manage these additional services.