Formerly based on the hydrocarbon trade, the economy of the United Arab Emirates and in particular that of Dubai is today very diversified. Dubai, the economic capital and main import-export platform, is growing exponentially.
This boom can be explained in particular by the existence of modern infrastructures at the service of enterprises and by very liberal regulations open to foreign capital.
Foreign investors can set up shop in Dubai by creating a company on the spot. This business can be “onshore” “Free Zone”
A “Free Zone” company is located in one of the many free zones called “Free Zones”. These are particularly attractive for foreign investors.
A CAPITAL THAT CAN BE 100% HELD BY FOREIGNERS
An onshore firm established in Dubai must be owned at least 51% by national partners.
On the other hand, a company established in a Free Zone can be wholly owned by foreigners, which allows them to have full control of their business.
A TAX FRAME FOR ENTREPRENEURSHIP
Tax on profits is often a hindrance to business development. If the companies established in a Free Zone are subject to the tax on the profits, this one is fixed at the rate of 0%. Thus in practice, no tax is levied on the profits of Free Zones companies.
Although VAT has been introduced in the United Arab Emirates, some Free Zones also constitute “Designated Zones” in which advantageous rules on VAT apply.
In addition, profits made on the spot can be repatriated to a foreign country without withholding tax, which is particularly advantageous for establishments of foreign companies.
Finally, there is no income tax in the United Arab Emirates.
A BROAD CHOICE OF ECONOMIC ACTIVITIES
The exercise of an economic activity is regulated in the United Arab Emirates and requires a license.
Be careful, some activities allowed in a Free Zone are not allowed in another.
ASD Group supports you in the choice of the Free Zone adapted to your project and accomplishes for you the necessary formalities to the creation of your company.