Company registration in the UAE - economically justified solution
Jurisdiction of the United Arab Emirates remains the most optimal for carrying out business and implementing of the international commercial projects. A zero rate of the corporate and personal income taxation, a perfect banking system, and also protection of the rights and interests of the investors at the legislative level – these are the bases which guarantee the economic stability and profitability of business in the United Arab Emirates. Moreover, the country eliminates control and restrictions on the movement (investment, withdrawal) of the investment assets and gained profits.
Geographical advantage as the key to success
Comparatively speaking, the interests of East, Europe, West, Asia and African region are intersected in the territory of the United Arab Emirates. Such geographic location makes the most convenient organization of the international trade operations with any point of the globe. The Government of UAE, in its turn, makes considerable efforts in order to provide private business with the necessary infrastructure, including the international transport logistics. It is not a secret that the modern system of transport logistics, highway service and railway communication operate in the Emirates, and the ultra-modern shipping and international air harbours are also available.
Achievements of the UAE in the international rankings
The United Arab Emirates take the fourth place in the nomination "International trade", and the twenty-third place in the nomination "Favourable conditions for carrying out business". Such indices became possible also owing to the low tax burden and a simplified procedure of company registration.
Business in the Emirates – advantages and benefits
One can single out the following possibilities among the key positions, which provide the ideal conditions for carrying out business in the UAE:
- Ability to perform a wide range of business operations;
- Open access to the domestic and foreign market of the UAE.
- Customs privileges for companies, which operate in the specialized trade zones;
- Zero rate of the corporate and personal income taxation;
- Possibility of opening both real and virtual office in the Emirates.
At the same time, before registering a company in the Emirates, one should pay attention to some points, which will determine the further activities. In particular, it is necessary to determine the type of business activity, legal form of the newly created company and the appropriate jurisdiction for registration.
Company in the UAE – legal basis and status
The norms of the corporate law of the United Arab Emirates provide for a variety of legal forms for carrying out business both in the domestic market and in the international arena. These can be the partnerships and individual entrepreneurs, local and international companies, branches or representative offices of the foreign companies, etc.
According to the experts, one of the keys to the successful entrepreneurial activities is the choice of a suitable jurisdiction for company incorporation. Type of activity and business focus affect directly the choice of the appropriate jurisdiction. Each form has its own possibilities and competitive advantages, whether it is a local company for work in the local market, or an international company in the territory of the free economic zone. Moreover, each legal form has its own requirements and conditions of registration, on the basis of which it is possible to determine the most suitable form for your business scheme.
Legal forms of the companies in the United Arab Emirates:
- International companies – are registered for carrying out activities at the international level;
- Business companies in the jurisdiction of the free economic zones – allow to carry out entrepreneurial activities in the international market, and restrictedly – in the local;
- Local business companies – are registered for operation in the local market, but do not exclude the possibility of entering international level.
The norms of the current UAE law allow the possibility of registering the following legal forms for the legal entities / companies, for registering business in the Emirates:
- Incorporated, Limited – international companies;
- Free Zone Company – companies, which are registered in the jurisdiction of the free trade economic zones;
- Limited Liability Company – a company, which is registered in the main jurisdiction of the country;
- Branch of Local Company – a representative office of the local company;
- Branch of Foreign Company – a representative office of a foreign company;
- Service Agent – a company for provision professional services.
It will be quite difficult for the average entrepreneur to master all the features of corporate law in UAE in a short time, and to choose a truly beneficial and economically justified solution. But you can always use the services of the professionals. It is important to understand that all the further success and profitability of the project will depend on the first steps - when creating the international business solution. That is why it is better to take these steps with the assistance of a qualified professional and to minimize all the existing risks.
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