Tax advantages of creating a company in the UAE


The UAE is an excellent tax-free jurisdiction for company registration, immigration and the creation of an economic substance.

Emirates is a country offering great opportunities that exist only in mature industrial financial centers. International companies moving to the UAE are in a prosperous market with excellent infrastructure.

Companies of free economic zones and offshore companies allow to own the company 100%. Also, such companies do not have taxes on profits and there are no property taxes. There are no restrictions on the repatriation of profits. In addition, free zone companies can use a wide network of about 80 double tax treaties.

Outside of free zones investors are also offered significant incentives, and legislation on corporate governance provides high transparency and accountability.

The UAE government encourages foreign investment in every possible way and has turned the country into a cosmopolitan center, in which specialists from all directions and a competitive workforce move.

In addition, Dubai has become a popular jurisdiction for the resettlement of people with large capital, in fact becoming a rival to Britain, Switzerland, Singapore and other countries.

Among offshore companies, there are interesting options for opening an offshore company in Ajman, or in Ras Al Khaimah. These companies can be opened remotely without the presence in the UAE.

You can also choose to open a local company in the UAE, or you can open a branch of the company in the UAE.

Creating an economic substance through company registration in the UAE

The UAE concluded about 80 treaties on the avoidance of double taxation. Some of the contracts are not attractive due to the restriction of benefits.

In other treaties, especially with European countries that applied the exemption method, for subsidiaries in the UAE and the regional centers of European holding companies, there are ample opportunities for registering in free zones, the ability to meet the substance criteria, and the opportunity to become effective in terms of taxation and significantly reduce the overall taxation of the group.

When registering a company in the UAE, even for small companies, opportunities are available to locate business functions in the Emirates, opportunities to implement tax savings, and meet the needs for economic substance.

Tax residency through company registration in the UAE

The free zone company in the UAE has a complete exemption from corporate income tax and corporate tax. A foreigner can own the company 100%. There are no currency restrictions. Repatriation of capital is possible without any restrictions. Savings on taxes are also due to approximately 80 treaties on the avoidance of double taxation.

Free zone companies can issue resident UAE visas and receive a UAE tax resident certificate from government agencies of the Emirates for their foreign owners and managers.

A free zone company must have a physical presence in the UAE.