Dubai has an open economy that is one of the best in the whole world. That is with a large annual trade surplus; also U.A.E is going through a brilliant change into a modern state with a high standard of living. In U.A.E, every state as well as the Federal Government is responsible for company set up and business activity. That is In Dubai the authority has purposely creates an environment which is well order; as well as a well define. As a result, Dubai offers an operating condition to company setup in Dubai; which is the total charm of Dubai company setup; and also it is the most liberal; as well as attractive in the region.
There are quite a lot of options available; that is for expat to set up a business in Dubai. Apart from a trading; many expat find that there are some other benefits as well to have a presence in Dubai; in order to make contacts, research market prospects, link with customers; and also see through the details of any business and orders secured. Having such existence can deliver significant business advantages in this part of the world.
How to setup company in UAE
Business man in the region wish to deal with some body they know; as well as they trust; and personal contacts are much more vital in Dubai company setup; then they are in U.K or in U.S.A. Also, the trade forms of some countries served by Dubai tend to be unpredictable; that is creating a need for first class market research; as well as information. Dubai company setup offers a wide range of business options to foreign companies, including:
- Direct trade in Local Market; that is Dubai company setup in mainland; will enable you to sell directly to local dealers; as well as to distributors.
- A commercial agency arrangements; that is in this option of Dubai company setup a U.A.E local will be sign an agreements.
- Branch or a representative office; that is in this option of Dubai company setup, 100% foreign owner ship allows; also a local agent must be appoints; and also D.E.D will issue this kind of the license.
- Special free zone: in this option of Dubai company setup, 100% foreign owner ship are allows; that is no local sponsor is requiring; but trade is restricting to that specific free trade zone.
In this post we will discuss the top 8 reasons for company setup in Dubai.
8 reasons for company setup in Dubai
Some of these reason are very obvious and some are not so
0% Taxes for company setup Dubai
In U.A.E, there is 0% corporate tax as well as 0% personal tax. Companies in U.A.E enjoy the least tax structure in the world. The favorable nature of tax structure in U.A.E was highlight by the study Paying Taxes 2013. In practice; however only petro chemical companies, oil & gas and branch office of foreign banks are requiring to pay tax.
DTA for company setup in Dubai
Income tax is always an issue for most of the investor; and considers it when they are going for business setup. Double taxation agreement (D.T.A) of U.A.E is one of the primary reasons for company setup in dubai. U.A.E has sign a contract on the prevention of double taxation; that is with around 50 countries. These countries contain its major trade partners from across the world.
Low Import Duty for Dubai company setup
Import duties in U.A.E are very low; that is around 5% for most of the goods. But for goods imported for use within a specific Free Zone; there are no import duties. There are around 40 Free Zones in UAE; these free zone offer packages for company incorporation in Dubai.
FTA and GAFTA for company setup Dubai
U.A.E is the part of the Gulf Cooperation Council (GCC); and therefore UAE base business (with the exclusion of Free Zone companies); enjoy duty free trade with all countries in GCC. It is also a member of the GAFTA; that is Greater Arab Free Trade Area; in which all the GCC state takes part. This enables UAE to trade with all the associates of G.A.F.T.A with lowest duties and barriers.
The GCC block is at this time discussing to sign Free Trade Agreements; that is with the EU, Turkey, Japan, India, China, Pakistan, Australia; Korea and the Latin American countries of Brazil; Uruguay, Argentina and Paraguay.
Those who target the GCC markets for business set up then U.A.E is a natural choice.
Availability of Manpower for company setup in Dubai
Due to large labor scheme of Dubai; employee hiring is an easy; that is you can hire employee from any part of the world; and also this make it easy for Business Setup in Dubai. Govt of U.A.E across the 7 states is trying to bring flexibility; that is in their labor law; so that to facilitate the work force in their state. Dubai are deeply investing in training the national work force; so that to play a greater role in boosting the U.A.E economy. At the same time 1.4 million people are now working in Dubai.
Strong and Competitive Economy
The U.A.E economy is in 3rd position among 15 countries; that is in the Middle East; and as a matter of fact it is 28th in the world; that is among 185 countries in the Index of Economic Freedom 2013; Wall Street Journal were prepare this; in partnership with the Heritage Foundation. U.A.E has created a vibrant background for company setup in Dubai; because of its clear and favorable business set up environment; as well as a high level of political stability.
Infrastructure in the U.A.E is very well develop; and also growing in quick rat; that is the construction of a residential, tourism, an industrial, as well as commercial facilities. Development is in a great scale; as a matter of fact there are a lot of opportunity; due to the develop infrastructure in the U.A.E.
U.A.E hosts some of see ports; as well as airports in the country; making it a logistics hub for international companies. The infrastructures of U.A.E are up to the international standards; which make it easier for company setup in Dubai and run them conveniently.
A strategic location is the key advantage for any company in Dubai; as a matter of fact U.A.E enjoys a prime location in the world; that is it is place in the center of Asia, Europe as well as an Africa; so this provide a great trading conditions. Chinese companies use U.A.E as a hub for an Africa. Western multi nationals use U.A.E as a hub for the Middle East; also an Indian traders use the U.A.E place to reach the rest of the world; as well as U.S.A use the U.A.E as a launch pad into south Asia. In addition to this it also help to target a wide range of geographical area with large business potential.