The onset of the pandemic early last year, without a doubt, unleashed tough times on businesses across the world. While the health crisis hit some economies more than others, the UAE government’s swift actions helped the country open up for business within months.
Here are the top reasons why several business giants are looking for new avenues in the UAE:
100% business ownership
The recent implementation of amendments made to the Commercial Companies Law, eliminating the need to mandatorily appoint an Emirati partner and entrust them with 51% of one’s company shares, comes as a breath of fresh air for entrepreneurs. Expat businessowners can now enjoy absolute legal control over their company’s finances and operations. Furthermore, they can also become residents of the UAE and sponsor their family members and staff. What more does an investor need to thrive in the UAE!
What makes entrepreneurs look towards tax-friendly countries for business? Take the European Union (EU) for instance. In the past two years, their financial systems have visibly shrank due to continued or renewed restrictions caused by the surge in Covid cases. Although the levels of their economic recovery vary based on severity of impact, the extent of rebound is slow. However, the major drawback for businesses in EU is corporate tax. According to the Tax Foundation, the average corporate tax levied in the Eurozone, comprising 19 member states, is 21.7%, with a low of 12.5% in Ireland and high of 31.5% in Portugal. In the UAE, however, corporate tax is not levied. Thus, luring investors.
Shuraa Business Setup, via its global branches (UK, India and Bangladesh) as well as legal and tax verticals, helps entrepreneurs learn about the economic opportunities available and understand the legal formalities of UAE company formation. Moreover, Shuraa assists with the entire process of documentation, obtaining governmental approvals, bank account opening, and more.
- The author is the Managing Partner of Shuraa Group of Companies