About the UAE
The meteoric rise of the United Arab Emirates to global relevance over the past two decades has taken the world by surprise.
Becoming the business hub of the Middle East, and the envy of oil rich nations worldwide, it is no secret that the Emirate royals have engaged in one of the most outward-looking development strategies of any single governing body of the last century.
Although the cities of Abu Dhabi and Dubai undoubtedly represent the epitome of comfortable living for hundreds of thousands of expats, there is much more to this unique coalition of no less than seven kingdoms.
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Capital City
Abu Dhabi
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Population
9.27 million
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Land Area
83,600 km²
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Currency
United Arab Emirates Dirham
(pegged to the USD at AED 3.67/US$1)
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Economic Activities
Oil Exports
(77% GDP), Tourism, Construction, Services, Manufacturing
Benefits of the UAE
The UAE have several obvious benefits that make it the jurisdiction of choice for many businessmen across the world
There is 0% tax rate on both corporate and private profits. The same rate is also applied on sales, inheritance and wealth tax. Taxes are levied only on petrol, gas and banking industries.
The UAE are not regarded as a tax haven as the tax exemption applies for both resident and non-resident companies. The jurisdiction is also not featured on OECD blacklist. Unlike other offshore jurisdictions the UAE enjoy an excellent reputation worldwide.
Since 1st of January 2018 the UAE benefits from a status of a VAT regulated jurisdiction. The 5% rate of VAT is applied on trade of goods and services inside the GCC region. However, VAT does not affect companies used for international trade because selling goods and services outside of the region is taxed by 0% VAT.
- 0% TAX
- No profit tax is being collected.
- OECD WHITE LISTED
- The jurisdiction is not featured on OECD blacklist.
- VAT REGULATED
- Companies can apply for VAT number.
- 5 DAYS INCORPORATION
- Incorporation time is five days.
- STABLE SYSTEM
- Sound and stable legal system.
- CONFIDENTIALITY
- High level of confidentiality.
FREE E-BOOK: INCORPORATE YOUR BUSINESS IN THE UAE
Explore 0% taxation and other benefits of the United Arab Emirates!
Company types
There are 3 types of company you can set up in the UAE. All the types are tax exempt but have different benefits and restrictions.
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IBC
OFFSHORE COMPANY
Since 2003 foreign investors can set up a non-resident company that may open bank accounts in the UAE and hold real-estate and intellectual properties. However, all business activities must be conducted outside of the country.
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LLC
ONSHORE COMPANY
Foreign investors can create a local LLC company, however, a majority of the shares must be held by a local business partner. In few limited fields of business activity like consulting services can the foreign ownership remain 100%.
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FZC
FREE ZONE COMPANY
This type of company is a convenient alternative to an offshore company. It allows foreign investors to keep 100% shares in the company without a need for a local sponsor. It also can sponsor a resident visas for it’s shareholders and employees.
