Advantage of setting up a United Arab Emirates (UAE) entity

Dubai in particular offers through various agencies an Offshore Company (IBC) regime which is a recognized and effective tool for tax planning and asset protection.

Depending on individual needs additional layers of protection can be added to increase protection of one’s interests. You can protect your company from the risk of a former sole-proprietorship or general partnership by setting up a trust. One’s estate can be protected from claims using a foundation, intellectual property can be managed by an IBC and so on.   

The benefits of setting up an IBC are: -

  • 100% income tax exemption;
  • 100% corporate tax exemption;
  • 100% ownership;
  • No requirements for minimum share capital, no restrictions on capital and profits expatriation;
  • No capital gains tax;
  • No VAT; and
  • No withholding tax;
  • UAE company law and banking regulations offers reliable mode of confidentiality;

If on the other hand the intention is to set up business in the UAE then on onshore company can be set up in the Free Zone. Due to the absence of corporate tax on most type of business activities and no income tax, very small deductions related to the payment of wages the UAE is considered a very effective place to do business.

Once a company is set up resident and work permits can be secured. A UAE resident is eligible to the following benefits: -

  • Tax exemption certificate;
  • UAE personal bank account with no information disclosed pursuant to OECD requirements;
  • UAE phone number;
  • UAE ID number;
  • UAE tenancy contract and utility bill; and
  • Extensive network of double tax treaties available.

If more information is required, please let us know.

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