Top reasons to open or relocate a business in the UAE

Top reasons to open or relocate a business in the UAE - Makebiz

More and more entrepreneurs are considering the United Arab Emirates for relocating or starting a business. Let’s identify the top reasons for the UAE’s advantage over other regions.

1. A stable economy that has not faltered even during pandemics and crises.

Rapid economic growth has been recorded despite its decline worldwide. International trade turnover and business investment have increased.

According to a ranking analyzing business conditions in different countries, the UAE has been awarded 80 out of 100 points. This is one of the highest scores, proving the simplified company registration process, affordable tax conditions and government support in doing business.

2. Possibility to choose an economic zone.

The territory of the region is divided into specialized free economic zones and mainland. The choice of business location depends on its goals and intended activities.

If there is a potential to work in the international market or the need to interact with local companies, it is necessary to open in the mainland of the UAE.

In all other cases, it is possible to consider registration in one of the 40 freezones, selecting the appropriate license for the activity.

3. Simplified process of opening a firm.

Transparent and fast registration process in the UAE is noted by many entrepreneurs. This is possible due to the adaptation of legislation to international standards of doing business, the development of modern technologies and infrastructure.

Among the main stages: selection of a trade name, filing documents for a license, renting an office and opening a corporate account.

4. Low tax rates.

Residents are attracted by the absence of income tax and double taxation (for citizens of 139 countries).

The rate of VAT in the Emirates is 5%, and corporate tax on net profit of companies is 9%. It is levied only if the amount of profit exceeds AED 375000 per year.

The UAE and some FEZs also have different incentives for certain types of businesses, in order to support small and medium-sized businesses.

5. Simple visa application procedure.

Foreign residents represent the majority of UAE residents, so the government offers several grounds for legalization:

  • official employment;
  • investment in business or real estate;
  • study at a higher education institution;
  • retirement age;
  • freelance work;
  • sponsorship of close relatives.

Resident status implies a number of advantages: from freedom of movement to the use of banking services, medicine and educational institutions.

The above factors are good reasons to relocate to the UAE, do business and live comfortably in a developed international center.

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