The United Arab Emirates (UAE) has always been among the most attractive jurisdictions for international business, drawing the attention of entrepreneurs, investors, freelancers, digital nomads and employees as an ideal place for work, networking, and living in general. This is evidenced by the 2024 migration study of millionaires, which shows that the UAE saw the largest influx of millionaires (+6,700), compared to +3,800 in the USA, +3,500 in Singapore, and +3,200 in Canada[1].
 
In recent years, the UAE has undergone significant changes, marking the beginning of an era of corporate tax at 9%. However, these changes in tax legislation have not diminished the UAE's attractiveness to investors.

Business-friendly tax regime and compliance with international standards

The 9% corporate tax rate is one of the lowest in the world and significantly lower than the global average corporate tax rate of 21.1% [2]. This certainly makes the UAE competitive on the international stage.

It is worth noting that the UAE is a highly prestigious jurisdiction for business, which is crucial from a reputational standpoint. In an era of increased international regulation aimed at combating money laundering, terrorism financing, and offshore schemes, incorporating a business in a jurisdiction that complies with international standards is essential for building a successful enterprise.

The introduction of the 9% corporate tax demonstrates the UAE’s attempt to strike a balance between complying with international requirements and maintaining a business-friendly environment. Additionally, the UAE’s tax system offers numerous benefits and opportunities, making it attractive for entrepreneurs. We will cover the tax aspects of doing business in the UAE in more detail in future publications.

100% foreign ownership

One of the key benefits of doing business in the UAE is the ability to have 100% foreign ownership of companies without the need to involve local investors (with some exceptions in mainland activities). This greatly simplifies business administration and provides more freedom in management.

Confidentiality

Although company registries are public, they do not disclose information about the owners, ensuring the confidentiality of your business.

A wide range of activities and an international hub for entrepreneurs

The wide variety of activities allows you to relocate or diversify your business. Moreover, the UAE serves as an international hub and promotes active connections among entrepreneurs through its network of business clubs and communities.

Simple and remote registration process with DiLex Group

The process of registering a company in the UAE is largely done remotely and is quick — provided that all necessary documents are prepared in advance. We provide comprehensive support to our clients at all stages of company registration, including assistance in obtaining residency visas, helping to select a bank, and preparing a case for submission for opening corporate and personal accounts.

A developed banking system accessible to foreign investors

The UAE’s banking system offers a wide selection of progressive banks that meet the needs of businesses, investors, freelancers, and digital nomads. One of the key advantages of establishing a company in the UAE is that foreign investors can open bank accounts, which is often a difficult or impossible task in many other jurisdictions.

Opportunity to obtain a resident visa and relocate family and employees

By registering a company in the UAE, an investor can obtain a resident visa and relocate to the UAE with their family and employees.

If you are interested in this jurisdiction and want to learn more, feel free to contact us!

Sources:

1. The Henley Private Wealth Migration Report 2024: https://www.henleyglobal.com/newsroom/press-releases/henley-private-wealth-migration-report-2024 

2. New OECD data highlight stabilisation in statutory corporate tax rates worldwide, 11 July 2024: https://www.oecd.org/en/about/news/press-releases/2024/07/new-oecd-data-highlight-stabilisation-in-statutory-corporate-tax-rates-worldwide.html