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4 Benefits of Starting A Business In Dubai 2019

October 14, 2019

Dubai Freezones explains your situation about utilizing the chance of business in Dubai’s company with an ownership that is 100%. Free Zones in the UAE were proposed as universal business center points for organizations leading business outside the UAE since they are not authorized to work inside. Free Zones are geographic regions inside a nation where products, administrations, and items might be exchanged without the interference of strict customs policy.

There are a lot of benefits of business setup in Dubai Freezone like pay tax-exempt, no corporate tax and full ownership of the foreign companies. Following are the benefits:

  • Banking Network
  • Tax Advantages in UAE
  • Advantages of setting up a business
  • Economic Stability

Banking network

Dubai: The four largest UAE banks, which account for nearly 70 percent of the banking assets, reported a combined net profit of Dh19 billion for the first half of 2019, up 16 percent from the same period in 2018, according to the first half results analyzed by rating agency Moody’s.

The combined net profits for the four banks increased by 3 percent when excluding the large gain at Emirates NBD. Their aggregate return on total assets stood at 2 percent compared to 1.9 percent in the first half of 2018. In the first half of the year, ENBD’s net profit rose 49 percent year on year, but by 8 percent excluding a Dh2.1 billion gain from the partial disposal of its stake in payment processing company Network International LLC.

Developments in technology and regulation are having a transformative effect on the current landscape of the UAE banking sector. Banks would, therefore, do well to swiftly adapt and pioneer practices and products that cater to gaps in the market or improve operational efficiency and competitive positioning.

Our latest banking perspectives publication sets out some of the key issues and trends affecting the global banking industry today, with a particular focus on the UAE. This report is based on our subject matter experts’ knowledge of the UAE’s financial services industry, allied with a detailed analysis of the top banks’ financial performance.

Tax Advantages in UAE

Taxes in Abu Dhabi, UAE – tax-free place for your business with low tax rates

Abu Dhabi is the capital and one of the most popular cities in the United Arab Emirates. It is the major political and industrial center of the country. Besides, it is a significant cultural, commercial, and business hub of the Emirates.

The Abu Dhabi tax-free environment is the key to carrying on profitable business and attaining personal financial independence.

The Emirate is the highly demanded place among those businesspersons and investors who are looking for the possibility to optimize taxation and carry out activities under the Abu Dhabi tax-free regime.

As of today, there are no taxes charged other than the flat rate of 50% for oil and gas companies, a 20% tax on the profits of the branches and representative offices of the foreign banks and flat-rate service tax on hotel and entertainment services.

The corporate taxation of such legal entities is carried out by the Abu Dhabi Income Tax Decree of 1965. This document specifies the system of applying corporate income tax for all the legal entities that are engaged in the trade or business activities on the territory of the Emirate of Abu Dhabi, UAE. In fact, the tax is levied only on the activities of oil and gas companies and branches or representative offices of foreign banks.

Advantages of setting up a business

Free trade zones are specific fields that offer tax, tariff, and regulatory incentives in order to attract export-oriented companies.

Usually, these incentives only apply for raw elements/products that are destined for export, if they are eventually sold to the local market, normal tariffs will apply.

  • Easy Set up
  • Support & Assistance
  • Exemption from customs duties
  • Exemption from value added tax (VAT)
  • Exemption from import and export tax
  • Reduction in corporate tax
  • 100% foreign ownership
  • Increase in the limit of foreign employees. 100% repatriation of capital and profits
  • 100% free transfer of funds
  • 100% exemption from import and export duties
  • Free zone company formation is faster than incorporation outside in the city
  • Inexpensive workforce and easy recruitment procedures
  • 25 years of lease options, warehouse equipment, availability of areas for production and assembling, etc.
  • No personal income tax
  • No corporate tax
  • No customs duties (within the area)
  • Free capital transfer
  • Foreign company ownership

Economic Stability

The economic and political stability in the UAE continues to attract career-orientated expats to the country in comparison to other markets globally, according to HSBC’s Expat Explorer 2019 survey.

Despite complex macroeconomic conditions and rising prices, people recognize the UAE for the financial benefits it provides, along with the safety and high quality of life for families. The country was ranked 12th out of 45 markets around the world by expats as a destination to live and work, while Singapore, New Zealand and Canada were chosen as the top three markets globally.

“It’s no surprise that the UAE continues to be ranked highly for the financial opportunities it provides expats from around the world, as this has been a consistent trend in the past few years of the survey. Whether it’s the higher earning potential and tax-free income, or the world-class infrastructure available for entrepreneurs, the country has steadily been growing as a beacon for career-driven expatriates,” said, Kunal Malani, Head of Customer Value Management, MENA, Retail Banking and Wealth Management, HSBC Middle East.

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