13 08 2020

For which areas of business is a company in the UAE suitable?

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What exactly attracts entrepreneurs to start business in the UAE, we described in another article. In this article we will tell you about the directions of business that are suitable for companies in the United Arab Emirates.

If you are planning to trade on the international market, then you definitely need to register a company in the UAE.

By registering a company within one of the many available Free Economic Zones, you are exempt from customs duties. This means that you can easily export and import goods without paying import and export duties. This feature can definitely be called an advantage among your competitors. You are completely exempt from taxation. Since the UAE authorities are actively concluding agreements with various countries to avoid double taxation, you can avoid paying tax in the country of your residency. Your company can obtain a tax residency certificate of the United Arab Emirates. You, your relatives and company employees will be able to obtain a UAE resident visa.

Do you want to own assets and invest?

Thanks to the reliability and confident reputation of the UAE, you will be able to effectively and safely use the company to increase and preserve assets and funds. Particularly, such a company will be able to carry out investment activities around the world.

Are you planning to run an IT business?

There are many Free Trade Zones in the United Arab Emirates which are ideal for doing IT business. You will have the opportunity to rent offices of any size or carry out activities in a virtual office. The main advantage is that you can sell your services all over the world and do not pay any taxes. However, if providing services on the territory of the domestic market, you will need to pay VAT at a rate of 5%.

Do you want to start production?

In the United Arab Emirates, you will find Free Zones specially created for organizing your own production. These zones are located near seaports and airports. You will be completely exempt from taxes and customs duties on goods import and export. Also, you will be subject to a double taxation agreement.

Are you planning to sell goods in the interior of the UAE?

You can easily sell your goods / services in the domestic market of the Arab Emirates, but for this you need to register a local company. Companies registered on the territory of the Free Zones are not suitable for such purposes. To sell goods and services throughout the UAE, you will need to form a mainland company in the UAE. The main disadvantage of such companies is the maximum share of ownership of 49% of the company's capital by a foreign investor. But this nuance can be easily solved with the help of local agents, so you can enjoy all the benefits of doing business within the UAE.