5 Apr

Five reasons to start a business in the UAE

The UAE today ranks as one of the fastest-growing commercial hubs in the Middle East. Besides the country’s strategic geographical advantage which provides global connectivity, luring investors and holidaymakers from around the world, its visionary government’s supportive initiatives help business communities across industries thrive. Below are the top five reasons which encourage entrepreneurs to start a business in the UAE.


1. Quick and simple steps of setting up a company in the UAE

The pandemic has been a catalyst behind economies across the globe going digital for survival. The UAE, however, embarked on this journey more than a decade ago. As a result, from authorising paperless financial transactions to e-signing for your company’s registration, you can set up a company in the UAE from the comfort of your home country.

Once you decide on which business activities you want to conduct and accordingly finalise your company structure, you can submit your documents and apply for a licence. With provisions for the issuance of an instant licence, you can register your company within a week.

2. Ease of doing business

The UAE provides a highly conducive environment for businesses, ranging from startups and small and medium enterprises (SMEs) to multinational giants, operating in various sectors to grow and thrive. Below are some aspects of why it is simple to conduct business here:

Access

Not only the UAE’s strategic location, but its numerous ports and well-managed worldwide air routes also facilitate businesses as key logistical hubs. The entrepreneurs based here can easily explore new markets and connect and trade with suppliers and buyers in the GCC, African, Asian and European regions. Furthermore, the presence of one the region’s leading centres for maritime and industrial commerce, Saqr Port in Ras Al Khaimah Economic Zone (RAKEZ), supports timely import and export aspects of trading and industrial companies by handling vast amounts of heavy bulk cargo. 

Infrastructure

An important factor behind the hassle-free business registration process is the location you choose for a company in the UAE. The main areas are categorised into mainland and free zone. While the mainland companies are onshore businesses registered under respective emirates, free zone enterprises are governed by differing and unique jurisdictions.

For instance, the business setup in RAK (Ras Al Khaimah) is highly favourable for conducting light as well as heavy and large-scale manufacturing activities, as the emirate provides RAK warehouse solution – comprising spaces for loading and unloading consignments, offices, heat-insulated doors and roofs and more options for customisation – in its three industrial zones. Moreover, the emirate also has labour accommodations to help you save on staff transportation.

RAKEZ also offers of state-of-the-art coworking spaces in Compass Coworking Centre and standard, executive and serviced offices its business centres.

Corporate services

It is not a one-person job to set up a company in the UAE. However, you do not need to worry about doing all the legwork by yourself. RAKEZ not only provides free consultation on setting up a company in UAE but also helps you navigate crucial governmental formalities and other processes including documentation for licence and visa applications. RAKEZ also provides Mazeed value-added services, which include recruitment, procurement, document typing, attestation and translation, consultancy, PRO assistance and much more.

3. Tax benefits

The UAE is set to introduce one of the world’s lowest corporate taxes in 2023. While the global average stands at 23.5% according to the Tax Foundation report, the UAE will levy only 9% tax on companies with annual profits exceeding AED 375,000; therefore, relieving small-income businesses.

Moreover, free zone companies which do not operate on the mainland are also exempt from the upcoming tax regime. So, entrepreneurs considering business setup in RAK will enjoy the benefits of zero taxation on profits as well income. Moreover, free zones entities are also not liable to pay the value-added tax of 5% currently imposed on sale of goods and services and borne by the end consumer in the supply chain.

4. 100% foreign ownership

Earlier, expats wishing to open a business in the UAE’s non-free zone areas would be required to partner with an Emirati sponsor who would mandatorily own 51% of the company shares. Now, however, foreign investors can have full company ownership and control over their business operations and finances, without having to worry about finding a trustworthy local partner.

This amendment made to the country’s Commercial Companies Law in early 2021 was hailed by the business community, boosting foreign investment and motivating more expats to settle in the UAE.

Free zone entities, however, have continually enjoyed 100% foreign ownership and profit repatriation and zero customs duty on re-exported goods.

5. Quality of life

With its remarkable record of fully vaccinating close to 97% of its population and opening its doors to businesses and international travellers within a few months into the pandemic, the UAE proved its ability to swiftly manage the health crisis prioritising the safety of its residents.

The UAE offers expat residents a higher quality of life at low living costs, nurturing a vibrant multicultural environment. Voted as the world’s second safest country in 2021, the UAE also has provisions for long-term visas for expats, adding to the reasons people chose to work and settle here. Entrepreneurs, in particular, can apply for investor visas and long-term Golden Visas and easily sponsor their family members too.

Another recent announcement on the introduction of pensions, offered to government and public employees with a possibility of extension to the private sector too, came as a breath of fresh air for the expat community which makes up the majority of the UAE’s workforce. Therefore, you can rest assured you will find talented people with the appropriate skillset for your business.

Simplifying the process of your business set-up

Getting the right people to help you start a business in the UAE, particularly, RAK free zone business set-up, is simply a matter of picking up the phone or sending an email. Experts at RAKEZ will not only help you figure out your company structure and narrow down on your business activities, but also, walk you through the entire process and assist you with documentation.

To get a free business set-up consultation, call +971 7 204 111 or send your query via email to info@rakez.com

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