Start a Business in UAE and Save on Tax
The UAE offers an exclusive geographical setting for global business opportunities. There are plenty of free zones located in the UAE’s region that encourage foreign investment by offering 100% business ownership and tax incentives to start a new venture.
UAE’s mounting economy is paying back huge profits in finance, e-commerce, property, trade, and service sectors.
The UAE has already caught the attention of large foreign direct investment. Main benefits for investing and starting a business in the UAE is 0% business taxation, 0% Value Added Tax, 0% personal income tax, 0% social security fees, free of charge trade with small import duties, free migration for people eager to work, a stable political environment, stable currency and restricted government interference in the financial system.
No corporate tax, no wealth tax, no income tax, no property tax, and no capital gain tax are some of the appealing features that attract investors around the world to start a business in UAE and save on tax.
The various options available for foreign investors to undertake business in UAE:
- Conducting business from abroad.
- Doing business with the support of an agent or distributor.
- Setting up a joint venture
- Getting hold of an existing local unit.
Where can foreign investors start a business in the UAE?
- Setting up business existence onshore (Mainland)
- Setting up a business in any of the free zones
- Setting up business as offshore company (International Business Company)
The decision whether to set up existence in free zone, onshore or offshore will often depend on the business activity you wish to operate in the UAE.
However, free zones are the best choice for anyone who wants to start a business in the UAE and save on tax. It offers a moderate and tax-friendly environment. Some of Free Zones advantages include:
- 100% company ownership to foreigners.
- 0% Corporate, personal, and professional tax.
- Easy availability of residence visas
- Access to hire overseas staff
- Free currency moving from one place to another.
- Assurance for fifteen to fifty years against the future burden of business tax.
- Low import and export duty
- Easy access to high-tech infrastructure and services.
How Investors Can Start a business in UAE and Save on Tax?
- The business incorporated in UAE is free from commercial tax, capital gain tax, withholding tax, import, and export tax.
- UAE has an agreement with over sixty-six international double tax-evading policies with the main nation like the USA, China, and most associates of the European Union.
- Foreign investors get easy access to home currency because of no exchange directs in place.
Recently, the UAE does not hold the Federal income tax system. As an alternative, the UAE’s seven emirates have their own commercial income tax rules that are imposed on the business activities executed there.
At this time, tax is only imposed on foreign oil entities occupied in upstream petroleum operations or other related activities. Foreign bank branches are liable to a twenty percent commercial tax under explicit banking tax rules announced by most of the UAE’s Emirates.
Remember, free zones in UAE offer exemptions from tax rules issued by Emirates for companies that started within their region for a renewable duration between fifteen and fifty years.
No withholding taxes are applicable for interest, dividends, or payments made by any ventures in UAE to another venture or residential or nonresidential person.
As a result, commercial income tax is usually not payable by most of the companies working in the UAE.
Now Start a Business in UAE – Call PMC Solutions DMCC Business Consultant for help.
It is not difficult to start a business in UAE; you can do it with the ease and comfort of your home. This is all possible with the help of PMC Solutions DMCC Business Consultant who will manage the whole process of starting a business anywhere in the UAE with great competency and professionalism. We ensure your company has proper tax planning, along with the right ways and tactics to decrease the tax burden.
For Free Consultation contact PMC Solutions DMCC +9714 275 6718 What’s app +971 588 631 656 or email – email@example.com