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Ease of Doing Business in UAE

Ease of Doing Business in UAE – Living and Doing Business in the Region

UAE is one of the most business-friendly countries in the world with world-class infrastructure and business growth opportunities. The ease of doing business in the UAE makes it an entrepreneur’s favorite location.

Ease of Doing Business in the UAE

UAE has a ranking of 16 among 190 countries in the ease of doing business, according to the latest world bank annual ratings.

The reforms in the UAE in the business sector are making it easier for investors to establish a company in the UAE.

What makes UAE a perfect choice for Investors?

Investors prefer UAE for business setup and settling down with family due to the following reasons:

  • The 100% foreign ownership and 100% Profit Repatriation
  • Tax-free status – No Personal or Corporate tax,
  • Robust transport network,
  • Personal safety and high standard of living
  • Multi-culture society,
  • The government support for business and trade

UAE also offers a host of residence visa options through the business setup in UAE, i.e;

  • Visa through Property purchase in UAE,
  • Retirement Visa for Seniors and People who wish to settle in UAE,
  • Long-term residence visa for Scholars, Entrepreneurs, Scientists, etc.

The quick issuance of residence visas in the UAE is another attraction for foreign expatriates to choose UAE for living.

Key Benefits of UAE Residence Visa

  • No ‘suo moto’ transmission of financial or fiscal data to other authorities for the person holding a UAE residency permit.
  • Open a tax-free bank account
  • Obtain for a tax residency
  • Obtain Tax exemption
  • As a residency permit holder, one can sponsor their families.
  • Zero Taxation on personal income
  • Government health services and local insurance access.
  • Special categories qualify for a 10-year Golden Residency
  • Applying for personal loans, mortgages, car loans, etc…
  • Visa-free travel to certain countries.

7 Factors that contribute to the Ease of Doing Business in UAE

At a glance, the following are few measures to speed up the company registration process in the region by Government and Free Zone Authorities.

1. Lowering of Business License Cost

The 40 plus Free Zones in UAE offers attractive business license packages to drive in more investors to the UAE.

The major upfront cost for entrepreneurs is the business license cost and rent for the office space. Lowering the component will attract more foreign investors to the UAE.

Doing Business in UAE

The most popular Free Zones in Dubai such as the Dubai Airport Free Zone offers a wide range of flexible offers for company setup like Flexi-Desk, Executive Office spaces, etc., at lower business license cost.

2. Quick Company Registration in Free Zones, Mainland & Offshore

The company formation process in the UAE is relatively straightforward and with faster processing time.

The streamlined company formation process and digitization of most of the functions such as document submissions, fee payment, license issuance, etc., make it easy for entrepreneurs to quickly set up their company in the region.

3. Fast Issuance of Clearances and Permit

To further speed up the company formation process the authorities have speed up the clearance and permit issuance for certain business activities like construction, healthcare, pharmaceuticals, etc.

The business setup process for certain activities requires special permission from the Dubai Municipality, Road Transport Authority, Knowledge & Human Development Authority (KHDA), etc.,

Doing Business in Dubai

All these Government bodies have digitized their operations to streamline the processing of a large number of requests received.

It has helped in a great way to register more number of companies in a shorter time.

4. Easy Mechanism for VAT Registration & Filing Returns

Zero taxation and no personal or corporate tax in UAE is a driving factor for investors to settle down in UAE.

The only tax businesses and consumers pay in UAE is a 5% VAT. VAT is charged on all purchase transactions made within the UAE. The VAT Registration and Filing have been made easier through the online platform managed by the UAE Ministry of Finance.

5. Quick Corporate Bank Account Opening

UAE has a matured and robust Banking Network with several international and local Banks offering a host of Banking Services and products to business customers as well as residents of UAE.

The digital process and quicker Know-Your-Customer Compliance checks, zero balance accounts, easy business loan issuance, etc., make UAE Corporate Banking Competitive.

Also, the Banks in UAE has various loan options and financial instruments to support SMEs.

6. Digitizing Import-Export Documents

For the trading companies operating in UAE, the import-export and customs clearance is a time-consuming process as inspection of the consignment and verifying the Certificate of Origin, and Trade documents by the Customs are performed on a case to case basis.

With the digitization of Customs checking and validating the Certificate of Origin, the import-export process is streamlined and fast making the goods clearance from UAE ports much easier and quicker.

7. Stimulus Package to support SMEs

The Government of UAE along with Central Bank of UAE, Other Banks, and Free Zones have issued Stimulus Packages worth approx. USD 256 Billion to promote trade and support SMEs in the region during the downturn from the Pandemic.

The relief measures were distributed to the business in many ways like Business License Fee waiver, Rent waivers, Interest-free loans, and many more.

In a nutshell, UAE is a perfect location for doing business and settling down with the family. With the business-friendly measure and high standard of living, it has all to attract foreign investment and create business growth in the region.

To know more about the Business Opportunities in UAE and ways to establish a company in UAE, talk to our expert business consultants right away!

Contact: Aurion Business Consultants