Benefits of registering a company in the UAE
There is no corporate tax / personal income tax / dividend tax *;
There is no foreign exchange control;
Individuals or legal entities can be directors and shareholders;
There is no need to submit reports;
Closed register of companies (the name of the beneficial owner is not entered in the register);
The opportunity, when registering a company in the UAE, to obtain UAE resident visas for the owners and employees of the company, as well as for their family members;
Very fast company registration in some free zones;
Low cost of company registration;
The ability to rent a virtual office instead of a real office, or in general, in some cases, you can have a company without an office;
Ability to use the benefits of double taxation treaties;
No customs duties within the UAE free zones.
* exception: oil industry and banking sector.
The procedure for registering a company in the UAE
There are two ways to open a company in the UAE: registration of a free zone company and registration of a local company. Opening an offshore company in the Emirates is possible only in some free zones.
The opening of a local company in the United Arab Emirates is carried out outside the free zones.
A local company can conduct commercial activities both in the United Arab Emirates and abroad.
An offshore company can only carry out commercial activities outside the UAE.
Foreigners can own 100% of shares of “local” UAE companies from June 1, 2021. That is, foreigners, starting from June 1, 2021, will no longer need a UAE citizen as a “local” shareholder to own “local” UAE companies.
In the free economic zone DMCC, you can create a company in the UAE without visiting the United Arab Emirates. If a DMCC company trades within the DMCC or outside the UAE, then the company will not have to pay VAT in the United Arab Emirates. The time to open a DMCC company is approximately 15-25 business days.
In the UAE, there are no taxes on corporate and personal income, as well as taxes on dividends.
Since January 1, 2018, the VAT in the UAE is 5%. However, for the export of goods and services, as well as for international passenger or freight transport and for transactions with residential real estate, a zero VAT rate is applied.