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🥁 We're thrilled to announce an exciting new partnership with Strive Consultants. Together, we're looking to create the ultimate tag-team for businesses looking to establish and grow in the UAE. No buzzers necessary – this is a win-win partnership where everybody scores.
There are several reasons why businesses are considering the move, however, the two most compelling reasons entrepreneurs are flocking to the region has got to be due to the tax benefits and of course the lifestyle 🪿.
Corporate tax in the UAE sits at just 9%. Interestingly, this low rate also only applies after you reach 375,000 AED in net profit, ensuring that the UAE offers a significant financial advantage over many other countries. To top it off, there's currently an exemption until 2027 for businesses with total revenue under 3 million AED (although, it is worth noting there can be a few exceptions to this rule).
Coupled with the incredible financial incentives for businesses, the UAE offers year-round sunshine ☀️, world-class schools with international curriculums, exceptional infrastructure, and a vibrant cosmopolitan atmosphere in the likes of Dubai and Abu Dhabi. The lifestyle really does make the UAE an incredibly attractive place to live while you grow your business.
It's clean ✅, it’s safe ✅, and everything seems to just work ✅.
When establishing a business in the UAE, you'll need to choose between three main company types:
· Mainland Companies: These are limited liability companies that allow you to trade both internationally and with locally registered UAE businesses and individuals. Perfect if you want to fully engage with the local market.
· Free Zone Companies: Designed primarily for trading with international parties and other free zone entities. These are ideal for businesses relocating their global headquarters to the UAE while maintaining an international client base.
· Offshore Companies: While less common now, these low-cost entities are designed primarily for holding assets. It’s worth noting that securing a bank account for offshore companies can be challenging these days.
Setting up in the UAE offers tremendous opportunities, but navigating the details requires expertise. That's where our partnership shines. Early planning is incredibly important because mistakes can be quite costly. Companies need to work out where to set up, they need to determine the right share structure and select the appropriate activities for their trade license. All these decisions benefit from expert guidance, which ensures the process is much smoother and will give you a strong foundation on which to scale.
Tom Bohills, Founder of Founders Law, said:
"In addition to the business set up, there are significant jurisdictional differences between the UK and UAE in terms of everything from employment law to IP protection and commercial regulations. Getting the foundations right from the start makes scaling much easier."
Of course, we couldn’t go without mentioning the amazing economic opportunity. The UAE is experiencing remarkable growth with the government announcing plans to double the population by 2040. These ambitious targets create tremendous market opportunities for forward-thinking businesses.
Pali Banwait, CEO and Founder of Strive Consultants said:
"We're at the beginning of a wave. If you time your presence there right and get in early, you can really take advantage of that growth curve."
Whether you're just beginning to consider the UAE or ready to make your move, our partnership ensures you'll have expert guidance every step of the way – from company formation and residency permits to the critical legal foundations that will protect your business as it grows 🌱.
Get in touch today with ed@founders-law.co.uk and we can chat you through the highs, lows, and in-betweens of opening and operating in the UAE to help you make the right decision for your business.
