Companies have severe difficulties conducting business activities in countries with unstable economies and politics, strengthening the tax press, raising prices for energy carriers and raw materials, and a constantly changing national currency exchange rate. Entrepreneurs are faced with the urgent question of transferring their business to a more stable state with favorable conditions for entering the foreign capital market. At the same time, many business people choose not only business immigration with the relocation of the company’s top managers but also the relocation of key personnel. The UAE is the most attractive jurisdiction for moving companies, production, and employees. This article will teach you about the opportunities and advantages of relocation to Dubai.
Possibilities of Business Immigration and Relocation in the UAE
Business relocation to the Arab Emirates provides foreign entrepreneurs with a wide range of opportunities:
- Conducting business in a country with a dynamically developing market and high consumer demand. In connection with the diversification of the country’s economy, the Government of the Arab Emirates supports the activities of foreign entrepreneurs investing in the development of industries not related to the oil and gas industry;
- Access to the markets of the Persian Gulf states, Europe, Asia, and Africa, taking into account the favorable geographical location of the UAE, a single tax and customs space with the countries that are part of the Cooperation Council for the Arab States of the Gulf;
- Optimization of expenses for business maintenance, thanks to a loyal tax policy and the absence of customs duties;
- Choice of type and organizational and legal form of the company. You can open not only a company in a free economic zone (Free Zone), which is available in each of the 7 emirates of the country, and in Dubai, there are more than 20 of them, but also a local company. Today, in many spheres of activity, the presence of a co-founder who is a UAE citizen is not required to register a local (domestic) company, as it was before. Now it can be 100% owned by foreign capital and operate throughout the territory of the Emirates;
- Equal rights with citizens of the UAE, regardless of your citizenship and type of activity. The state guarantees the stability and safety of doing business on transparent conditions, without artificial checks and corruption;
- Preserving the confidentiality of information about the company’s owners, business operations, and received income;
- Use a reliable, stable, and well-developed banking system with many local and large foreign banks. Here you are guaranteed: preservation of banking secrecy, protection from the automatic exchange of tax information (SRC), security of cash storage and transactions, the possibility of obtaining loans and letters of credit, availability of modern banking services;
- Obtaining residence visas not only for the founders of the company, their family members, and directors but also for the staff, which allows the relocation to the UAE of the entire team or the central part of the employees with the hiring of qualified and inexpensive labor among expatriates, who make up the majority of the country.
Business immigration to the UAE allows conducting international commercial activities from a jurisdiction that enjoys a good reputation worldwide, without risks of de-offshore and default.
Pros and Cons of Relocation to Dubai and UAE
Dubai is one of the largest and most prestigious emirates in the country. The company’s move here with its staff has several significant advantages:
- The ability to keep the team or the leading, most experienced, and professional part of the team, which will allow you to set up a business in a new place quickly;
- The predictability of business development and the possibility of long-term planning, thanks to the stable exchange rate of the national currency – dirhams about the dollar and the euro;
- Simple, transparent, and fast company registration, especially with the help of specialists who understand all the intricacies of local legislation. Difficulties with incorrect or incomplete documentation may arise, and you will need additional time to open a business;
- The absence of quotas for the citizenship of employed workers in the labor legislation and the relative ease of obtaining residence visas for them;
- Developed infrastructure with modern office, production, warehouse, and retail premises. An affordable price for their rent and purchase. At the same time, it is possible to buy a room in installments for 3 years, making the first payment in the amount of 5% of the real estate value;
- The simplicity of conducting business activities due to the absence of reporting, constant checks, and currency control from the state;
- Zero taxes on the income and profit of legal entities and individuals, wages, revenue, and dividends of employees. The possibility of free withdrawal of capital and profits;
- Security of living in a country with a stable political environment, the supremacy of the country’s laws, and compliance with international treaties and agreements;
- Low prices for energy carriers.
The disadvantages of relocating to Dubai are much fewer and less significant than the advantages. Disadvantages of moving the company with the staff include:
- The need to observe local traditions based on Sharia laws;
- Hot climate – already at the end of March, the air temperature reaches +33 degrees, and in summer – up to 40-45. At the same time, there are often sandstorms;
- Impossibility of obtaining UAE citizenship.
Relocation to Dubai will undoubtedly give a new boost to business development if, in your country, conducting business is hampered by imperfect legislation and an excessive tax burden. Suppose you decide to take such a step. In that case, Dynasty Business Adviser specialists will help you correctly, without problems, and in an optimally short period, legally arrange the relocation of your company together with its staff to Dubai or another emirate of the UAE.