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Low Tax Company Setup in UAE

How to Increase Tax Savings by Establishing Company in UAE

Establishing a Company in UAE and transferring the funds into UAE company bank account is an intelligent method of asset management. It also helps in saving taxes for foreign investors in their home country.

UAE is ranked as one of the top countries for the ease of doing business. The safety of the banking network couple with e-governance and political stability make the country an attractive destination for multi-national companies and global investors.  

UAE is known for its luxurious lifestyle and high-end infrastructure. There is no income tax levied here. The only tax applicable is a meager 5 % Value-Added-Tax (VAT). The applicability of VAT depends on the modus operandi of the business.

How can Investors gain from Establishing a Company in UAE?

Most of the Multi-National Companies and Investors are establishing their Company Head-Quarters in UAE. Investors see UAE as a favorable destination for setting up a business and settling down with family mainly due to the following reasons:

  • Conducive Business Environment
  • Incentives by the Government
  • Safety and Security Guaranteed
  • Favorable Diplomatic Policies and Business Laws 
  • Global Connectivity

Along with doing business, establishing a new company in UAE, and opening a company bank account is an intelligent method of wealth management.

1. Double Taxation Avoidance Agreement (DTAA) Treaty

UAE has also signed the Double Taxation Avoidance Agreement (DTAA) with 117 Countries and the business houses and residents are eligible to avail the benefits of DTAA.

The Companies that are one-year-old and Individuals who have resided in UAE for more than 180 days can apply for the Tax Residency Certificate from the Ministry of Finance.

 It will enable companies to prove their residence in UAE and avoid double taxation from their home country on the revenue generated in the UAE.

To know more, read: How to apply for a Tax Residency Certificate

2. Government Incentives to Support Business and Trade in UAE

The UAE Government offers a host of incentives to support business and trade in the region. The incentives are aimed at reducing the hassles in establishing a company in UAE and make the business environment more friendly to investors

Business Incentives for the Investors in UAE 

  • 100% Foreign Ownership,
  • No Corporate or Income Tax
  • 100% Profit Repatriation
  • Zero Customs Duty for Imports into Free Zone 
  • World-Class Business Infrastructure
  • Discounted Fee for New Business Registrations

What are the options for Overseas investors?

Overseas investors have multiple options to set up their business here in the UAE

  1. Business Setup in UAE Free Zones
  2. Company Registration in UAE Mainland
  3. Company formation in UAE Offshore

Of the three options available for establishing a company in the region, the easiest and quickest way is to opt-in for a business license from one of the 40+ Free Trade Zones of UAE.

Free Zones of UAE – The Ideal Choice 

Free Zones are designated areas within UAE having a separate jurisdiction and authority to govern the administrative operations and company registration process.

The companies registered in the Free Zones enjoy a number of incentives and tax cuts. Companies can be incorporated by an individual, or as a branch of a company, or a subsidiary of a foreign company in the Free Zones.

Setting up a Branch Office in UAE Free Zones

Setting up a branch office is a hassle-free process and it can be done in a week’s time. Attestation of parent company documents in the home country and in UAE is required for the registration of a branch. There is no requirement of capital for setting up a branch in UAE.

Individual companies can be set up in two days’ time by providing the passport copy of the investor. 

To know more, read: How to Setup a Branch of a Foreign Company in UAE.

UAE Freezones – Various Facilities Available

Sharjah Media City (SHAMS) and Dubai Silicon Oasis – IFZA Free Zones are the fastest growing Free Trade Zones in the UAE with a range of business activities and infrastructure facilities to support the business.

These Free Zones have:

  • Warehouse Facilities with Built-in Office Spaces, –  150 Sq.m, 300 Sq.m, 600 Sq.m, etc.
  • Office Spaces – 12 Sq.m, 25 Sq.m, 50 Sq.m, 100 Sq,m, etc.
  • Virtual Offices
  • Land Lease
  • Other logistics support Systems
  • Dedicated Customs Checking, etc.

Experienced Business Consultants would guide you with the right option for successfully establishing your company in the UAE Free Zones.

Choosing the right Free Zone is Critical

Choosing the right Free Zone for your business is critical and will help you achieve business profitability soon by reducing expenses and enhancing productivity.

The Free Zones of UAE comes with a host of business benefits for the investors.

The Free Zones offer the investors top-class infrastructure, technology support, and an all-in-one platform to easily start the business running from the first day.

There is additional support like 24/7 security, free Wi-Fi, meeting rooms, seminars, recreational spaces, and more.

Business Opportunities in UAE for foreign Investors

There is a huge potential for overseas investors to gain benefits from venturing into these industry sectors.

  • Manufacturing 
  • Commercial Trading/ General Trading
  • Services
  • Real Estate
  • Retail
  • IT Services /E-Commerce
  • Financial Services
  • Tourism
  • Research and development
  • Innovation
  • Energy 
  • Minerals and Metal Trading

As Dubai is aiming to further diversify its economy and reduce the dependence on oil and gas, new emerging sectors like smart transportation, sustainable energy, and information technology industries are the future.

UAE is aimed at promoting and introducing innovative offerings, the latest technology, and best practices across the world.

UAE is gearing to establishing a sustainable business ecosystem in the future that will limit the environmental harms and reduce carbon footprints.

Rising Industry Sectors in the UAE

The exceptional government support, business ecosystem, availability of skilled labor, global connectivity, etc., is making UAE the perfect business center of the world.

UAE will be one of the major hubs for international business in the coming years and a lot of infrastructure projects and business investments are in line.

UAE has emerged as a Popular Trading Center of the World

The trading sector is one of the most popular industries in Dubai aside from the emerging ones.

From retail commodities to industrial equipment, UAE is one of the largest trading centers in the world.

The exceptional transportation links, international airports, and seaports are connecting UAE with the rest of the world.

Thus UAE is the perfect platform to facilities your trading business and expands to the world easily. The shopping, logistics, and distribution network of the UAE ports drive large volumes of international trade.

Interested in Company Formation in the UAE to increase tax savings, talk to our expert consultants right away!

Contact: Aurion Business Consultants