WHY IS COMPANY FORMATION IN DUBAI A VIABLE OPTION FOR THE FUTURE?
There are many reasons why the UAE, and in particular Dubai is one of the best places to start, migrate or open a branch office of your business, but the most common ones include:
The UAE benefits from a low Corporate Tax rate of just 9% on net profits above AED 375,000, while your first AED 375,000 in net profit carries a 0% Corporate Tax rate. Your dividends, capital gains and income are all taxed at a rate of 0%. Whilst the UAE had already introduced Value Added Tax (VAT) in 2018, the implementation of a Federal Corporate Tax in Dubai and the UAE marks another important milestone in the country’s gradual evolution towards a mature tax jurisdiction.
The UAE is a stable country, with low crime and high living standards. The UAE has also seen immense GDP growth in recent years and has bounced back stronger than ever from the COVID-19 pandemic. Much like other GCC countries it is precited to be one of the most prosperous by the early 2030’s.
The UAE offers exceptional networking opportunities, with UAE-based businesses able to meet and collaborate with experts in their field from almost every nation on Earth. Looking to recruit top talent into your business? UAE-based candidates are some of the strongest in the world, drawn to the country by its high living standards, exceptional education, and low personal tax rates.
IMMERGING BUSINESS TRENDS IN THE UAE
Numerous industries are currently experiencing substantial growth in the UAE, with several noteworthy sectors thriving, including:
- Tourism / Travel
- E-commerce
- Marketing
- Financial Based Activities
- Consulting
- Import / Export
- Real Estate
STRATEGIES FOR A FUTURE-BASED ECONOMY IN THE UAE
The strategy of the country is based on four key themes: the happiness of citizens and residents, improved government efficiency, advanced legislation that qualitatively transform federal government operations, and the UAE’s international leadership in the field of information security and transfer.
HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai launched ‘UAE Centennial 2071’ in 2017 as a roadmap to make the UAE the best country in the world, by the year 2071, when celebrating the centennial of its establishment.
FUNDS & PROJECTS FOR FUNDING FUTURE-LOOKING ECONOMY
There are currently two main funds set by the Dubai government to help and boost the economy:
- MOHAMMED BIN RASHID INNOVATION FUND (MBRIF)
The Mohammed bin Rashid Innovation Fund is an initiative launched by the federal government, with a capital of AED 2 billion, to support innovators and assist them with acquiring necessary funding for their projects. Resident individuals, and companies of all sizes registered in the UAE, may benefit from this fund if they have unique and innovative ideas.
Dubai Future District was launched with the objective to become the largest environment for creating a future-centric economy, an incubator for promising ideas, and a source for funding and legislative solutions. The project intends to strengthen the readiness of Dubai’s economy for tackling future challenges and will include a research centre, incubators, accelerators, and an innovative space for future economy pioneers.
HOW CAN WE HELP?
Creation Business Consultants’ expert team of corporate services specialists is standing by to assist you with establishing your UAE company structure. With over a decade of experience in company formation and structuring In the GCC and wider Middle East region, we are sure to be able to provide the right solution for your needs. Speak to one of our Corporate Structuring or tax consultants today for your free 30-minute consultation, email [email protected] or call UAE +971 4 878 6240.
