companies in the UAE are entities that operates outside of its country of origin. Companies choose to establish an offshore setup to take advantage of Dubai’s numerous business incentives including the exemption from taxes. They are often used for investments, financial transactions, and asset protection.
companies are entities incorporated within special economic zones that are self-regulated by the managing authorities. Free zone entities can only conduct business and trade with the local UAE market with the assistance of a local service agent. Unlike mainland companies, free zone entities can only conduct business and trade with the local UAE market with the assistance of a local service agent.
companies are incorporated onshore entities, licensed by the Department of Economic Development (DED). You are free to incorporate a mainland company anywhere in the UAE and can conduct businesses within and outside the local market.
Key Features:
• Enhanced Ownership: Recent changes allow for 100% foreign ownership in most sectors.
• Operational Flexibility: Conduct business anywhere in the UAE and internationally.
• Diverse Opportunities: Access to a broad spectrum of business activities and sectors.
Business Operations and Scope:
• Mainland: Suitable for businesses targeting the local UAE market and international expansion. Offers a broad range of business activities without geographical restrictions.
• Free zone: Ideal for businesses that focus on international trade or specific industries. Offers benefits like clustered industries and specialized infrastructure.
Ownership and Corporate Tax:
• Mainland: Now allows for 100% foreign ownership in most sectors. Subject to the UAE's corporate tax laws.
• Free zone: Offers 100% foreign ownership. Certain Free zones may provide a 0% corporate tax rate, subject to specific criteria.
Mainland Companies in the UAE offer a comprehensive platform for businesses aiming to fully immerse in the local and international markets. They present a flexible and dynamic environment for a wide array of business activities."
Key Features:
• Foreign Ownership: 100% foreign ownership, aligning with international business practices.
• Corporate Tax Considerations: While previously known for tax exemptions, Freezones now adhere to specific corporate tax regulations introduced in June 2023. Some Freezones might offer a 0% corporate tax regime, depending on the business activity and location.
• Customized Business Environment: Each Freezone is tailored to specific industries, offering specialized infrastructure and services.
Free zones provide strategic locations for businesses focusing on international trade and specific industry sectors. These zones facilitate foreign investment with a cluster of benefits tailored to various business needs."
The United Arab Emirates offers a dynamic environment for investors worldwide, providing a gateway to not only the Middle Eastern markets but also to Africa and Asia. Recognizing the value investors bring to the local economy, the UAE has established investor visa categories to facilitate their business and investment activities. Among these, the Investor Visa for company shareholders and the Real Estate Investor Visa are two key options, each tailored to different investment avenues. UAE Investor Visa for Company Shareholders
The Real Estate Investor Visa is aimed at individuals investing in property within the UAE. This visa encourages investment in the UAE's real estate market, offering investors a residency permit.
Eligibility Criteria:
• Investment in one or more properties with a total value of at least AED 1 million (approximately USD 272,000).
• The property must be completed and ready for occupancy.
• The investment must not be mortgaged, or if mortgaged, a certain percentage of the property value must be equity.
Benefits:
• Residency for up to 2 years, renewable.
• Ability to sponsor family members for residency.
• Access to the UAE's lifestyle, healthcare, and education system.
Application Process:
1. Purchase qualifying real estate property in the UAE.
2. Obtain a property valuation certificate from the Dubai Land Department or the relevant authority in the emirate where the property is located.
3. Apply for the Real Estate Investor Visa through the ICA or GDRFA, providing proof of property ownership and value.
The UAE Investor Visa for company shareholders is designed for entrepreneurs and business owners who wish to establish or invest in a company within the UAE. This visa provides a pathway for investors to live, work, and conduct business in the UAE, offering a renewable residency permit.
Eligibility Criteria:
• Investment in a new or existing company within the UAE.
• The investment must meet the minimum capital requirement set by the specific emirate.
• Proof of investment and company ownership.
Benefits:
• Residency for up to 2 years, renewable.
• Opportunity to sponsor family members, including spouse and children.
• Access to the UAE's banking system, ability to rent property, and more.
Application Process:
1. Establish or invest in a UAE company, meeting the required capital investment.
2. Obtain approval from the relevant Economic Department and the Ministry of Labour.
3. Apply for the Investor Visa through the Federal Authority for Identity and Citizenship (ICA) or the General Directorate of Residency and Foreigners Affairs (GDRFA) in the respective emirate.
The freelance visa, also known as the freelance permit or freelance license, is a specialized residency permit introduced by certain free zones in the United Arab Emirates (UAE) to attract independent professionals, freelancers, and digital nomads to live and work in the country. This visa allows individuals to legally work as freelancers without the need for a local sponsor or a physical office space. Find out more: freelancedubai.co
Investing in the UAE offers unparalleled access to a rapidly growing economy, strategic location, and a stable political environment. Whether you're a company shareholder looking to expand your business or a real estate investor seeking opportunities in a vibrant market, the UAE provides a supportive ecosystem for your investment ambitions.
Effective Date: The UAE Corporate Tax regime is set to be effective for financial years starting on or after June 1, 2023. This means that businesses with a financial year aligning with the calendar year will start paying corporate tax from January 1, 2024.
Corporate Tax Rate: The UAE has introduced a progressive corporate tax rate structure. Profits up to AED 375,000 are subject to a 0% tax rate, aimed at supporting small businesses and startups. Profits exceeding AED 375,000 are taxed at a rate of 9%, which is competitive compared to global standards.
Corporate Tax for Freelancers: As stipulated in Clause (6) of Article (11) of the Corporate Tax Law, only those freelancers whose turnover surpasses AED 1,000,000 (equivalent to USD 272,000) within a Gregorian calendar year are subjected to Corporate Tax. If your turnover is is above AED 1,000,000, then profits from AED 1 to AED 375,000 will be taxed at 0%, and profits above 375,000 will be taxed at 9%.
Small Business Relief For the tax years 2024, 2025 and 2026, it is possible to take advantage of this regime, which allows the exemption from taxation on profits if the turnover does not exceed 3,000,000 AED (approximately 800,000 USD)
Scope of Taxation: The Corporate Tax applies to all UAE businesses and commercial activities, except for the extraction of natural resources, which remains subject to emirate-level taxation. The regime covers both onshore and free zone businesses, although free zone entities that comply with certain conditions may still benefit from tax incentives.
Exemptions and Deductions: The UAE Corporate Tax regime provides for various exemptions and deductions to ensure fairness and encourage investment. These include exemptions for qualifying intra-group transactions and restructurings, and deductions for expenses incurred wholly and exclusively in generating taxable income.
International Compliance: The regime is designed to comply with international tax standards, including the OECD's Base Erosion and Profit Shifting (BEPS) project. It aims to prevent tax evasion and ensure that profits are taxed where economic activities and value creation occur.
Compliance and Reporting: Businesses are required to file annual corporate tax returns. The specific compliance requirements, including registration and filing procedures, will be detailed by the UAE's Federal Tax Authority (FTA).
Implications for Businesses
The introduction of the Corporate Tax regime in the UAE signifies the country's commitment to a sustainable economic model and its role in the global economy. Businesses operating in the UAE will need to assess the impact of corporate tax on their operations and take necessary steps to comply with the new regulations. This includes understanding the tax implications of their business structures, transactions, and potential benefits from exemptions and incentives.
For free zone entities, it's crucial to review the conditions under which tax incentives will continue to apply and ensure compliance with the new regime's requirements.
Corporate Tax Registration Deadline: Generally, Businesses are required to register with UAE's Federal Tax Authority (FTA) within 3 months form the issuance of business license.
Moving to the United Arab Emirates (UAE) presents a thrilling opportunity for growth and exploration, both personally and professionally. While the transition to a new country comes with its set of considerations, approaching these with a positive mindset can transform challenges into valuable learning experiences. Here’s how to navigate the relocation process with optimism and excitement:
Embarking on the visa and residency process is the first step towards your UAE adventure. While it involves detailed documentation and medical testing, it’s also an opportunity to become acquainted with the UAE’s legal framework. Approaching this process with patience and attention to detail ensures a smooth start to your new life.
Discovering the perfect home in the UAE is an exciting venture. The real estate market offers a diverse array of living options to suit every taste and budget. Familiarizing yourself with lease agreements and utilities setup becomes an engaging way to learn about your new environment and make informed decisions about your living space.
If you wish to look for your new home, you can visit propertyfinder.ae or bayut.ae
The UAE's rich tapestry of cultures offers an unparalleled opportunity for cultural exchange and learning. Embracing local customs and traditions with an open heart enriches your expatriate experience, allowing for personal growth and a deeper understanding of the world.
Year-Round Sunshine - The UAE enjoys a subtropical arid climate, which means that it is sunny virtually every day of the year. This consistent sunshine ensures that outdoor activities, beach days, and poolside relaxation can be enjoyed without the worry of rainy days interrupting your plans. The abundance of sunlight is also excellent for your health, providing ample vitamin D which is essential for bone health and overall well-being.
Warm Winters - One of the most appealing aspects of the UAE's climate is its mild and pleasant winters. From October to March, the weather is perfect for exploring the outdoors, with temperatures ranging from a comfortable 18°C to 25°C (64°F to 77°F). This period is ideal for desert safaris, outdoor dining, and exploring the UAE's stunning natural landscapes, from its pristine beaches to its majestic desert dunes.
Vibrant Outdoor Lifestyle - The warm climate of the UAE supports a vibrant outdoor lifestyle. Residents and visitors can indulge in a wide range of activities, including water sports, golfing, outdoor yoga, and more. The country's world-class infrastructure for sports and recreation means that there are endless opportunities to stay active and enjoy the outdoors, whether you're a thrill-seeker looking for adventure or someone who enjoys leisurely walks along the beach.
Spectacular Sunsets - The UAE is renowned for its breathtaking sunsets, which paint the sky in stunning shades of orange, pink, and purple. The clear skies not only contribute to the vividness of these sunsets but also make them a daily spectacle to look forward to. Whether viewed from a beach, a desert camp, or a high-rise building, the sunsets in the UAE are truly mesmerizing and a testament to the country's natural beauty.
For families, the UAE’s competitive education sector offers a chance to give children a world-class international education. Early engagement with the application process opens doors to diverse curricula, ensuring a bright future for your children in a supportive and high-quality learning environment.
The UAE's state-of-the-art healthcare facilities provide peace of mind, knowing that you and your family have access to excellent medical care. Exploring healthcare options and securing comprehensive insurance is a proactive step towards safeguarding your health and well-being..
IMPORTANT: it’s mandatory to have a private health insurance in UAE
Creating a new social circle is an adventure in itself. The UAE’s vibrant expatriate community is a melting pot of cultures, offering endless opportunities for making friends, networking, and building a support system that feels like home.
1. Mobility and Visa-Free Travel: A second passport can significantly increase an individual's ability to travel globally, offering visa-free or visa-on-arrival access to numerous countries. This is particularly valuable for individuals from countries with less powerful passports.
2. Safety and Security: Having a second passport provides a plan B in times of political instability, economic downturns, or other crises in one's home country, ensuring an additional layer of personal and family security.
3. Business Opportunities: A second citizenship can open up new business opportunities, including access to favorable tax regimes, investment options, and the ability to work and reside in other countries.
4. Tax Optimization: Depending on the jurisdictions involved, obtaining a second citizenship can offer tax planning advantages, potentially reducing tax liabilities through favorable tax treaties and regimes.
5. Family Benefits: Many citizenship by investment programs allow the main applicant to include family members in the application, thereby securing the benefits of additional citizenship for future generations.
6. Education and Healthcare: A second passport can provide access to high-quality education and healthcare systems, enhancing the quality of life for the passport holder and their family.
Citizenship by investment programs (CIPs) offer individuals the opportunity to obtain citizenship in a country in exchange for making a significant economic contribution to that country. These programs are available in several countries around the world and can involve various forms of investment, such as donations to a national development fund, investment in real estate, or investment in business ventures. Below is an overview of some notable citizenship by investment programs worldwide and the importance of having a second passport.
1. Caribbean Nations:
• St. Kitts and Nevis: One of the oldest and most popular CIPs, offering citizenship through donations or real estate investment.
• Dominica: Known for its affordable donation option and investment in real estate or approved business ventures.
• Grenada: Offers citizenship with the added benefit of visa-free access to China and eligibility for the USA E-2 visa.
• Antigua and Barbuda: Requires a donation, real estate investment, or business investment, with the unique feature of a relatively short residency requirement.
• St. Lucia: Offers multiple investment options, including a donation, real estate investment, government bond investment, or enterprise project investment.
2. Europe:
• Malta: Offers a citizenship program that requires a combination of donation, investment, and real estate purchase or rental.
• Montenegro: Offers citizenship through investment in approved real estate projects, with a program set to run for a limited time.
3. Vanuatu: Offers a straightforward and fast citizenship by investment program through a donation to the government's development fund.