The UAE presents ready-made solutions for licensing complex types of business that have come under government regulation in other countries. The licensing standards provide equal rights for all market participants and complete freedom to conduct international activities without additional financial "burdens" for businesses that are traditionally discriminated against in other countries. You have the opportunity to conduct a business for trading in oil and oil products, medicines and chemicals, gold and precious metals. You will be able to invest in or develop construction projects.
Advantages of the UAE jurisdiction for doinginternational business
A legal entity in the UAE can belong to a foreign investor and freely conduct international business without entering the local market.In addition, your company will harness all the privileges of a low-tax jurisdiction to minimize tax payments.
No corporate tax or personal income tax(although 5% VAT applies to a number of categories)
Conditions for equalcompetition
Foreign and local entrepreneurs are treatedequally both for UAE activities and foreign business
Access to theGulf countries
All 6 countries of the GCC share a commontax and customs space and free trade zone making a large single market
State protection and multi-countryinternational agreements on mutual protection of investments
The state legally guarantees the freemovement of capital without currency controls or regulations
Data concealmentand protection
Shareholder registers are secret, meaningbeneficiary concealment tools are legal and supported by the state
Absolute stability of the banking system, noinflation, and the US dollar exchange rate is fixed by law
Safe repositoryfor funds
Secure banking and government guarantee ofthe safety of funds are an important part of promoting international and domestic trade
All business owners can apply for tax residentstatus and receive information exchange protection (CRS)
The Emirates have proved to the world that a diversified approach, appropriate economic objectives and support for unrestricted entrepreneurial activity can lead the country to prosperity and make it a leader in all significant global business ratings. The UAE today is a leading financial platform, the largest logistics hub and a key international business center.
Licenses available for complicated activities thatare difficult to obtain in other jurisdictions
Trade in oil and oil products
Medicines and chemicals trading
Trade in tobacco products
Trade in precious metals
Investment and financial activities
Construction and engineering activities
The uniqueness of the UAE for licensingcomplicated activities
No additional fees
Many highly profitable and in-demand types of activity experience additional overheads in most countries in the form of duties (excise taxes), requirements for payment of quotas, etc. There are no such obstacles in the UAE.
Equal rights and opportunities
You can engage in any legal activity and at the same time have equivalent rights with local residents regardless of your nationality, religion or line of work.
There are no artificial restrictions in the country for business people who are not on the sanctions lists (the so-called “special circle of persons”), which makes the Emirates an ideal place for entrepreneurs who want to grow, develop and make high profits in their chosen industry.
The country really is tax-free, allowing you to extract the maximum profit from the business. No taxes on foreign business activity, export and re-export, personal income tax or corporation tax. The only tax is 5% VAT applied to a number of domestic categories.
CRS information exchange protection
When conditions are met for granting tax resident status, it means removal of tax consequences in the investor's country of origin and is an instrument of international tax planning because automatic exchange of tax information under CRS does then not apply.
International activities from a base in the United Arab Emirates
All you need to operate a complicated type of business in the UAEis to incorporate a legal entity and go through the licensing procedure.
Specific features of licensing complicatedbusiness activities in the United Arab Emirates
Offshore countries lost their financial attraction for incorporation to minimize taxes, conceal beneficiaries, and international tradeand investment after the introduction of “tax base erosion” provisions supported by the FATF.
Peculiarities of the place of incorporation
The licensing procedure in the UAE is laid down by FederalLaw but each emirate, like each Free Trade Zone created on its territory, has local characteristics that are reflected in regional rules and regulations, and the time taken to complete the incorporation procedure can vary significantly.
The Economic Department (DED) of the emirate chosen forincorporation issues licenses for local companies. In Free Zones the administration does it. That defines the form of legal entity that may be incorporated and some licenses require a UAE national to hold 51% of the shares.
Complicated licenses require approval of the department(s)responsible for supervising the related areas of activity. These can be the Construction Department (DM, BDept), Ministry of Health (MOH), Department of Transportation (RTA), Department of Environmental Protection (MOCCAE) and the Central Bank (CB).
Close attention is paid to the safety of the premises in whichoffices are located and products are stored. In some cases, a business is obliged to hire an employee with specialized education and experience in that industry or to be accredited by specialized government departments. Inspections ensure that premises have the required permit and trade license.
Renewal of licenses and permits
Annual license renewal is required after audit reports havebeen submitted to the regulatory authorities, a lease agreed for a new period, and other regulatory requirements fulfilled. License renewal is a form of state control of business activities and represents a hidden tax on companies.
Annual payment of fees and rent
Renewing licenses and permits to operate follows the sameprocedure as initial application with the same approvals required. The fees are a mandatory overhead for doing business in the UAE. Other outlays may include lease renewal, agent services and regulatory body permits.
Receiving a license for a complicated business activity means that you have passed a thorough government audit. Correctly selected types of activities and place of incorporation demonstrate your professionalism and reliability. An unspoken tradition has developed in the UAE business environment which says the more complicated the license, the more serious a player you are in the market in the eyes of potential partners.
SORP expert solutions for business licensing inthe UAE
We will select a suitable license foryour chosen activities and decide which type of legal entity to form
SORP's streamlined businessprocesses and resources guarantee support by qualified professionals
Local partner oragent
Nominee service from SORPInvestment LLC with a waiver of rights in the court of Dubai
Rent space in the SORP BusinessCenter for accommodation and licensing - offices, flexi-desks, co-working and virtual solutions
We work closely with UAE banks,understand their compliance rules and facilitate KYC verification when opening bank accounts
We provide full business supportincluding legal, tax, accounting and administrative services, so you can outsource all tasks to us
The global trend towards increased control over business leaves fewer legal methods to minimize the tax burden, optimize cash flows and allocate funds to accounts. However, incorporating a local (mainland) company provides business people with a complete set of tools for solving such problems. That includes protection against automatic exchange of information about tax, bank accounts and assets, as provided for by CRS.
What to consider when conducting internationalbusiness from the UAE
The UAE’s preferential tax regime
The UAE's preferential tax regime offers companies many opportunities to maximize profits. To fully benefit from all the advantages of this jurisdiction, you need to provide the international financial institutions and fiscal authorities of the country of your citizenship with evidence that the UAE is where management and control of your business takes place, and is the center of your vital interests.
Organizing a command and control center in the UAE
A command and control center in the UAE confirms that you have a real office with staff in the Emirates. It demonstrates that all management decisions of your company are made here, shareholder meetings are held, documents circulated, transactions are concluded and, accordingly, taxes are paid here.
Obtaining tax resident status
Today, the world’s banks are responsible for maintaining and sharing data according to the CRS (Common Reporting Standard) agreement. It involves the exchange of tax information between countries in real time and significantly complicates the work of companies to optimize taxes. Obtaining UAE tax resident status defines you or your company as a taxpayer of this country with reporting obligations to the local fiscal authorities.
Proof of UAE tax affiliation
By obtaining tax residency, you prove that the UAE is the jurisdiction where you pay your taxes, meaning you can protect your assets from automatic exchange of information. Banks and financial institutions of the UAE will not send information outside the state (place of your confirmed residence), which will make it inaccessible for the tax authorities of your country of citizenship.
Protection of assets from inspections by fiscal authorities
Complex types of activities that are regulated in other countries attract increased attention of international financial institutions, especially if such activities are accompanied by large cash flows. By obtaining a business license in the UAE and organizing a Management and Control Center here, opening a secure bank account and obtaining tax residency, you ensure the safety of your assets and business from interference by the regulatory authorities of your own country.
Take full advantage of the UAE jurisdiction tomaximize the success of your business
We will provide professional advice on the organizationof your company in the UAE. We will select personalized solutions that meet your goals, including optimizing your international business.
How to work in the international arena having licensed yourbusiness in the UAE
Protection against exchange of tax information
Your tax jurisdiction affiliation must be established as being in the UAE to prevent the automatic exchange of tax information under the provisions of CRS.
Confirmation of economic presence
To prove that tax optimization of your international activities is valid abroad, you must substantiate the feasibility of using the UAE as your base of operations.
Tax planning opportunities
To optimize taxation when conducting international activities, you are strongly recommended to use the mechanisms permitted by legislation and ensure freedom of settlements.
SORP services for international business
Methodologyand business analysis
We will research the market, thecompetitive environment and specifics of legislation. We will select suitable areas for setting up and running a business.
We will represent your interestswith UAE government agencies, issue resident visas for business partners, employees and their families, and renew licenses and permits.
We will provide a nominee directorand shareholder to conceal the actual beneficiaries and enable intragroup transfer pricing should that be a requirement.
We will provide maintenance andaudit of accounting documentation and generate the required report to confirm transactions when making international transfers.
Tailored solutions to improve theefficiency of tax optimization schemes for international business based on UAE legislation, expertise and successful cases.
Confirmation ofeconomic presence
Proof that operations are managedand controlled at the registered address of company incorporation and that business operations are affiliated to UAE tax jurisdiction.
SORP Group will become your reliable long-term working partner in the UAE
SORP is a leading consulting group providing a full range of services for the incorporation, support and management of business inthe UAE and internationally. We have an impeccable reputation, broad capabilities and a solid asset base.
SORP offers comprehensive support for acquired companies and their shareholders: from licensing, maintaining Bank accounts to obtaining the status of a tax resident of the country
Your requirements are unique. That is why we treat every business individually to tailor the right services to achieve your priorities.
15 years of successful work
We have helped thousands of clients acquire, build and develop businesses in the UAE
Assistance in choosing a bank that is suitable for your purposes, support with bank accounts opening and passing KYC procedures (know your customer).