Advantages Of Company Formation
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.
We take a look at the various advantages associated with company formation in the UAE.
• Global trade hub
UAE practises a culture of open and free trade with its trading partners. The average tariff rate for goods entering UAE is 5%, but the country is packed with free zones that offer incentives like tax and duty exemptions. UAE’s open border foreign labour policy is an added bonus for private sector companies, allowing them to recruit expatriate employees at internationally competitive wages China’s silk road economic belt.
• Strategic location of the country
Located strategically on the new Southern Silk Road between Asia, Europe and Africa, the UAE enjoys excellent trading conditions. The various countries and regions that are in constant business relations with the UAE, and use it reach out to the world are:
China (uses UAE to reach Africa)
India (uses UAE to reach out to the rest of the world)
Latin America (uses UAE to reach South Asia)
Western countries (uses UAE as a hub for the Middle East)
• Low import duties
Most goods and items that are imported into the UAE enjoy extremely low import duties. To add to this, goods imported into free trade zones are completely exempt from import duties.
• 0% Corporate and Personal Taxes
Companies in Dubai or UAE’s 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.
• No double taxation
In order to avoid double taxation of foreign companies, 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 Al Maktoum International Airport, free trade zones, ports etc.