For some years now the United Arab Emirates has been primarily known across the globe for offering the ultimate in tourist opportunities. Few holiday packages could match its unparalleled capacity for sun, sand, and sports as well as its elite hotels and super rich shopping facilities. But as well as facilitating one of the world’s fastest growing tourist industries, the UAE is quickly becoming recognised as a centre for finance, trade and business.
Little over 40 years old (it was originally established in December 1971) the UAE is classed as a constitutional federation which comprises 7 emirates: Abu Dhabi; Ajman; Umm-al-Qaiwain, Dubai; Ras al-Khaimah, Sharjah and Fujarah. The federation covers a huge area of over 83,000 sq. Km and borders geographical areas such as the Arabian Peninsula and Qatar to the South and Saudi Arabia and Oman to the North. It is becoming a lead player for commerce in the gulf.
UAE benefits
- Tax free environment (see below)
- Excellent network of Double Tax Treaties
- UAE is a white listed jurisdiction
- Ideal as Global headquarters centre
- World class logistics and IT infrastructure
- Strategic location on the trade routes of East and West
- Talented and diverse labour pool
- Secrecy, asset protection and no international exchange of information
- Distinguished and unique lifestyle
UAE tax incentives
- No Corporation Tax
- No Personal Tax
- 100% Ownership in Free Zones
- No foreign exchange controls, trade barriers or quotas
- No restrictions on repatriation of funds
- Strong investor incentives and protections
- Easy access to key decision makers
UAE entities
- Limited Liability Company (LLC)
- Branch of Foreign Company
- Free Zone Entity (FZE)
- Representative Office
- International Business Company (Offshore)
What is attracting commerce and trade?
The Gulf began to open its doors to dynamic commerce in 1966 when oil was first discovered. Overall this has been a springboard for the UAE to streamline its business processes and functions throughout many high-end industries. Consequently benefits which are intrinsic to facilitating successful enterprise, such as reduced logistical and operational costs, robust infrastructure, international outlook and liberal government policies are attracting investors in a big way. Now rather than the UAE just being known for super luxury holidays – trade and commerce has become rich, diverse and progressive.
Dubai continues to thrive as a hub of commerce
In particular the governing bodies appear to be fully behind entrepreneurial ideas and projects and systematically introducing pragmatic economic policies. Dubai in particular has profited and is now very much a thriving hub for commerce and trade. Many believe that it is the current ruling family and their successors,( vice-president of the UAE, Sheikh Mohammed bin Rashid Al Maktoum, Sheikh Rashid bin Saeed Al Maktoum and successor Maktoum bin Rahsid Al Maktoum) who have turned Dubai into a highly affluent modern city state.
It was the vice president who devised a business plan which twinned an aggressive approach to foreign investment and also actively promoted Dubai’s targeted business sectors. Consequently this proved to be a major factor in the recent unprecedented outbreak of economic activity and has successfully facilitated economic diversification.
Asset Protection for companies in Dubai
A major benefit for entrepreneurs considering setting up commercial enterprise in Dubai is the fact that it is not a signatory to any international exchange of information agreements. As it will not make any taxation gains from being part of such treaties it is unlikely this policy will change and for individual organisations it means there is a fundamentally high level of security, privacy and asset protection for companies and individuals. Only banks and companies in the oil sector are subject to corporate taxes. There is also no income tax, capital gains tax and inheritance tax.
To benefit from Dubai’s superior banking privacy legislation, a client may establish an offshore bank account in Dubai. A Dubai offshore company incorporation or formation may be used for many activities including tax mitigation, estate planning and asset protection, hold approved Dubai property and other assets;
