In the high paced world of today, developing a business is one of the top priorities for individuals who pursue change. Climbing the corporate ladder demands enthusiasm, which entrepreneurs demonstrate with good grace.
Before establishment, a corporation has to be registered in the country it plans to function within. In this regard, the location where the business is registered plays a pivotal role. It is important to remember that the ease of regulations and performance standards depend on the rules and restrictions of a company’s home country.
UAE ranks on top amongst the many tax-free countries in the world, because of the competitive options it provides. With government-based incentives to attract foreign investments and options like the golden visa, foreigners and citizens prefer registering their companies in the UAE.
If you are planning to register your company, then read on as we explore 6 main reasons why company registration in the UAE is the best option.
In this article, we will talk about the following
- Business structures for the UAE
- Reasons to register a company in the UAE
- Why choose SPC Free Zone?
Business Structure in the the UAE-6-Reasons to start a company in the UAE
Free zones in the UAE are tax-free zones that many entrepreneurs and investors choose as a place to establish their businesses. The potential benefit a company can reap after being registered in one of the UAE’s free zones is astounding. The two main types of business structures that a company in the UAE can adopt include:
Free zone company
This form of business structure is 100% owned by the person who has set it up. One would not need a sponsor or an agent to act as a liaison to manage the venture.
If one decides to register their company in a free zone in the UAE, they can enjoy the following benefits:
- 100% foreign ownership
- The ability of opening a corporate bank account in the UAE
- 0% taxation on businesses
- Less renewal charges
- Zero paid-up share capital
Mainland Companies
A mainland company is simply an onshore entity that is registered with the relevant emirate’s government body.
The fundamental feature of a mainland company is that there are no restrictions on its commercial activities.
6-Reasons to register a company in the UAE
There are many reasons why businesses prefer registration in the UAE. Some of the most common reasons are:
- Tax-Free Zone
Compared to many other countries in the world, the taxation laws of the UAE are lenient. With Sharjah emerging as competitive business centers of the world, they have become a magnet for startups and established companies alike.
The UAE government imposes income tax only if the incorporated company is in the foreign banking, oil, or gas industry. Otherwise, corporations of every kind are exempt from taxation in the UAE. Moreover, the free zone areas of the UAE offer lucrative opportunities for businesses.
In tax-free zones, individuals can enjoy tax-free profits. To add zest to the opportunities, it is worth noting that the UAE has signed double taxation agreements with various countries to ensure that foreign entrepreneurs do not have to pay taxes to their country of origin.
- Tax Residency
If you register a company in the UAE, it provides you with an opportunity to take up residence as well. The UAE offers long-term visas for entrepreneurs, business owners and their families that allows them to stay in the UAE for up to 10 years. The UAE also offers tax residency that significantly reduces the overall tax burden , and provides the chance of higher profits increase by leaps and bounds.
- Astounding Infrastructure
The UAE, with emirates like Sharjah, takes pride in being the hub for astounding infrastructure. Businesses often thrive in regions where other businesses have successfully established their foundations, mainly because of improved infrastructure, accessibility to talent, and ease of transportation.
A well-developed city with firmly established infrastructure and economy allows companies to thrive in the market. The UAE is one of the most well-reputed countries and, as a result, serves as a great option for business owners from around the world .
- Easy banking
Businesses around the globe often prefer countries where the transaction is easy. The genuine boost of an organized bank system in a company’s home country is essential for growth.
Moreover, a company’s success is mainly dependent upon the right form of credit, ease of banking, and accessibility to banks with a global presence. For companies, this notion is not a hassle since there are a multitude of international banks to choose from in the UAE.
- Ownership
Registering a company in the free zone of the UAE implies that foreign investors will have complete ownership of the company they have established. However, keep in mind that the majority of foreign investors who aim to develop a business on the UAE mainland will need the assistance of a local sponsor.
- No Capital requirement
Amongst the various types of companies registered in the UAE, the free zone possibility is one of the most remunerative. A free zone company is ideal for those who are looking for a “tax relief-invoicing facility.”
In order to set up a free zone company, there is no minimum capital required or a necessity for an actual office facility.
Why choose SPC Free Zone?
SPC Free Zone helps provide support to businesses, including an opportunity to opt for a dual license for the mainland and free zone. Each license includes up to 100 visas, too. Moreover, businesses can maximize their profits with zero paid-up share capital, and 100% foreign ownership.
SPC Free Zone also provides an e-commerce license and general trading license for all commercial activities. Our aim is to provide business owners with the tools and knowledge they need to navigate their way. And also provided 6 valid reasons to register a company in UAE.
SPC Free Zone is here to help with your business setup in the UAE!
