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Which companies find it particularly beneficial to do business in the UAE?

Setting up a business in the United Arab Emirates (UAE) is a strategic move for companies seeking a favorable tax climate, convenient infrastructure, and access to international markets. However, the UAE is not for everyone, and its advantages are especially noticeable for certain types of companies. International law firm Antwort Law will help you assess the benefits and will accompany you through all stages of business registration in this promising jurisdiction.

First, let's look at the key advantages that the UAE provides for doing business, and then discuss which companies will be able to take advantage of these opportunities most effectively.

Main advantages of the UAE

  • No income tax on turnover up to 3 million dirhams (~755,000 euros)
  • A 9% income tax is applied only to income exceeding the specified threshold (calculated as income minus expenses)
  • No tax on dividends paid within the UAE
  • No VAT on the export of services, which makes operations outside the country especially profitable
  • Simplified registration of companies in free zones
  • Minimization of bureaucratic procedures when doing business.

Some companies find it especially profitable to do business in the UAE due to the unique conditions that this jurisdiction provides. First of all, these are:

1. Companies that are not tied to a place of business: businesses that can work remotely or do not require a physical office are ideal:

  • Online businesses, including e-commerce and educational platforms.
  • Consulting companies working for international clients.
  • IT companies and software developers.

2. Export-oriented companies: whose goods and services are aimed at the international market, the UAE offers a minimal tax burden and a simplified export process:

  • Exporters of services (education, IT, analytics). 
  • Trading companies working with clients in other countries.

3. Companies with a profit of USD 500,000: opening a company in the UAE becomes especially profitable for businesses with an annual profit of USD 500,000. For companies with lower incomes, the costs of registration, office rent and support may be disproportionate to the benefits received.

4. Companies interested in tax optimization: for holding structures, logistics companies and investment projects, the UAE provides favorable conditions for minimizing taxes. International agreements on the avoidance of double taxation also play a key role.

5. Companies seeking stable growth: the UAE offers a stable economic environment, access to investment, a stable currency and transparent legislation, which is ideal for companies focused on long-term development.

Opening a company in the UAE also requires careful tax planning. Antwort Law provides its clients with a comprehensive calculation of the effective tax rate (ETR) taking into account the residency of the founder, taxation features in other countries and the application of international tax treaties. We analyze in detail their impact on your business and develop optimal solutions to minimize the tax burden, ensuring sustainable and long-term growth of your company.

By contacting Antwort Law to register a company in the UAE, you will receive the following benefits:

  • Selection of the optimal license in accordance with your type of activity.
  • A detailed description of the company's structure, including office requirements, reporting procedures, taxes and accounting.
  • Analysis of the tax burden on founders taking into account their tax residency.
  • Support for the first transaction, including drafting an agreement, making payments and promptly answering any questions that arise.

The UAE is a promising jurisdiction that offers favorable tax conditions, convenient infrastructure and access to international markets. However, its advantages are most noticeable for companies focused on the international market, with profitability of USD 500,000 and above.

Antwort Law will become your reliable partner at every stage - from company registration to its tax support. Write to us to discuss your plans and get professional support.

Lidia Ivanova

International lawyer
Antwort Law

FAQ
Which companies can benefit the most from registering in the UAE?
The greatest benefits are received by IT companies, online businesses, service exporters, companies with profits of USD 500,000, as well as holding and investment structures seeking tax optimization.
What tax benefits does the UAE provide?
In the UAE, there is no income tax on turnover up to 3 million dirhams (~755,000 euros), no dividend tax, and no VAT on export of services. Companies with income above the threshold pay only 9% income tax.
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