Each year the number of business licenses is growing in the UAE which indicates the attractiveness of the region for investments in several arenas from all over the world.
Starting up a business in the UAE has its own features, which must be carefully examined prior to establishing a new company. Opening up a new business in the UAE is a great opportunity to maximize profits within the country and obtain the status of tax resident of the country.
The UAE has a vibrant free economy and successful efforts have been made to diversify away from dependence on hydrocarbons and a solid industrial platform has been created together with a strong services sector. The establishment of international business companies, free zones companies and other investor friendly policies has been an important feature of this diversification policy.
Having numerous reasons to be confident about the UAE’s future, the main reason is being its advantageous environment for economic substance (ESR) and ultimate beneficial ownership. Lot of investors are choosing UAE for its diversity, geographical location and for its business-friendly environment.
The primary reasons to invest in the UAE are as follows:
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Infrastructure and quality of life: UAE enjoys the status of having political stability which has enabled the implementation of sound economic policies reinforcing the country’s social structure to develop one of the most tolerant, prosperous, secure and safe societies in the world. Dubai has been ranked the top cities in the Middle East region for quality of life, according to latest editions of global surveys. In terms of infrastructure, UAE is second to none.. To date, the government has invested heavily in infrastructure development, and it has opened up its utilities and other infrastructure to increase private sector involvement.
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Tax benefits
UAE offers tax benefits incentives for business owners and investors that encourage them to invest in the region, making UAE as the most convenient place to conduct business.
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Business friendly environment
UAE’s business friendly environment within the region. The nation’s significant efforts to expand economic dependency in non-oil sectors established immense opportunities for other business at different verticals.
Other changes
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UAE introduced the federal corporate tax rate of 9% which is set to become effective from June 2023, and the tax rate has been aimed to attract foreign investors.
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Effective from 1 January 2022, both public and private sectors aligned themselves to the new weekend schedule of four and half day working week.
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Latest labour law been implemented ending the unlimited contract structure and replacing with fixed term work contracts for a period of three (3) year, sets new minimum wage, new work model.
How Freemont Oneworld group can assist you?
Our legal and compliance team is equipped with professional specialists with knowledge of the UAE legal and regulation systems.
We can advise you on the right structure for your business and assist you with the relevant laws, compliance and policies so you can set up your company and manage your business efficiently.