Start Your Business in UAE
Do you want to start your business abroad? Do you want to grow your business internationally? Are you ready to explore the international market?
If the answer to the above questions is yes, then you are at right place reading this article. This article would help you significantly in deciding why you should choose United Arab Emirates (UAE) to start your business abroad.
Starting a business overseas is currently the way ahead for growth of a company. No company can grow if it is involved and focused only in domestic business since its growth opportunities would get exhausted after a certain point of time in its home country. Companies should always look to diversify and move into an entirely new territory which it has never experienced.
Businesses from all over the world have started establishing their presence in the UAE reasons being ease of access, streamlined and comprehendible visa process, less paperwork, value for your ideas and innovations, world-class technology,logistics, infrastructure, safety & security, etc. The UAE has turned out to be a favorable location for carrying on the international business.All the major world trade routes intersect in the UAE, what makes it the largest import-export centre in the world. Such a strategic location gives certain advantages for building the international business relationships.
In this article, we would share the top 5 reasons why the UAE is an ideal business destination for companies starting business abroad:
1) Taxation Benefits
The UAE offers several taxation benefits to business owners as an attempt to promote investment from other countries. Currently, the UAE is completely a tax-free country. However, w.e.f. 1st June,2023, the UAE would be imposing corporate tax @ 9% on net profits exceeding AED 3,75,000 ( USD 1,02,000). Still, the UAE is the only country in the world to have lowest corporate tax @ 9%.Hence, companies should give priority to the UAE if they wish to start business overseas. Also, the companies can still enjoy the benefit of zero tax if their net profits does not exceed the threshold limit of AED 3,75,000 ( USD 1,02,000).Free zone businesses will be within the scope of corporate tax and required to register and file a corporate tax return, but will continue to benefit from corporate tax holidays / 0% taxation if they comply with all regulatory requirements and do not conduct business in mainland UAE.
2) Ease of doing business
An important news to be considered for companies looking to start their business abroad is that the UAE is currently on 11th place in the World Bank’s Annual Ranking of Ease of Doing Business which is a significant milestone on global stage. This proves that the process of incorporating a company in UAE is simple and fast when compared with other countries.This is an important factor which needs to be considered by the interested companies since they save a lot of valuable time in company incorporation processand can immediately begin their business.
3) Collateral free Business Loans
It is a well-known fact that injection of additional business funding is the key to seize new business opportunities for any company. In UAE, banks offer business loans to entities based on Turnover achieved over last 3 years and having sound balance sheets. While doing so banks do not ask for any collateral or security other than receivables and stock. In addition to this, the banks in UAE charge competitive interest rates when compared with other countries. Hence, companies in UAE have hassle-free access to finance with minimum formalities.
Generally, a growing company achieves 20 to 30 percent growth onyear-on-year basis. With this there is always requirement of additional working capital. An entity based in India having sizable exports might not get additional working capital from Indian Banks if they are not able to provide additional collateral security every time when they request enhancement of working capital loans. This can be a big hurdle to growth for companies with exponential growth in imports/ exports. Here a UAE based entity – a subsidiary of Indian entity can be of help. UAE entity can avail collateral free loan from Banks in UAE and this can meet working capital requirement.
4) Number of options for location of Business
One of the vital parts in setting up a business in a specific country is selecting a perfect business location in that country for future economic success. Selection of business location is a make-or-break decision for a company. The UAE offers various Freezone, offshore and mainland locations for companies to start their business in UAE.The said locations in UAE have their respective benefits in terms of ownership, trade regulations, compliances, etc. Hence, acompany can freely choose any suitable location depending upon the type of business it is planning to set up in the UAE. Such flexibility allows companies to startits business in the UAE with great ease. One needs to choose option very thoughtfully since a wrong selection can be expensive since cost of formation or closure of entities in UAE is expensive as well.
5) Bright Future Prospects for Business
The UAE plans to further cement its position as an economic, technology, innovation and business hub. The city of Dubai has begun hosting the country’s biggest spectacle with the Expo 2020 w.e.f. from 1st October,2021. This global event will mark a significant stage in the UAE’s economy and pave its way towards the future. Designed to attract millions of visitors from all over the world, the Expo 2020 will largely change the way the country does business and create more opportunities in various sectors and across various industries. Hence, it is fair to say that Expo 2020 is going to be the game changer for UAE and would significantly boost the businesses in the UAE.
These points provide insights of the UAE which are helpful for the entrepreneurs who are planning to establish their business in UAE. The UAE is taking every possible step to welcome the entrepreneurs. To sum up, it would be appropriate to say that the UAE has everything to offer to the entrepreneurs and help them carry on with their respective businesses easily.
Our team at Prosperise Business Consultancy LLP would assist you in setting up business in Dubai / UAE. We offer consultancy on selection of right company - Mainland or Offshore or Free Zone Entity. We provide one stopsolution to all compliance requirements within UAE i.e accounting, VAT, Audit, reporting under various statues in UAE as Beneficial Ownership, Economic Substance Regulations etc. We offer these services from our office based in Mumbai India. All you have to do is call us on +91 7738990548 or reach out to us at [email protected]