Tax Savings, UAE Residence Visa, Corporate Bank Account - Three Business Benefits of UAE Company Setup
Contributed by Aurion
08 March, 2021
UAE is always at the forefront in attracting foreign ex-pats and entrepreneurs to start working, settling, and starting a company the easiest way.
The key factors driving company registration in UAE are Tax Savings, UAE residence Visa, and corporate bank account opening.
Three Major Business Benefits in Setting up a Company in UAE
There are enormous business benefits like 100% foreign ownership in free zones, tax savings, a wide range of residence visa options, easy bank account opening, a growing business ecosystem, and more when setting up a company in UAE.
There is no personal and corporate income tax in the region. The only tax in UAE is the 5% VAT for all active transactions in UAE.
Setting up a company in UAE benefits the entrepreneur in saving significant taxes in their home country. Investors in UAE can apply for the tax residence certificate in UAE and gain the benefit of the Double Taxation Avoidance Agreement (DTAA) that the UAE has signed with 117 countries.
It will enable investors who are in UAE to not pay any taxes in the home country for the profits or investments made in UAE.
VAT Free Trade Zones could further ease the burden of paying VAT by the investors for all transactions within the Free Zone. A Designated Zone will have the privilege for VAT calculations.
However, there few exemptions to the non-payment of VAT for companies registered in a designated Free Trade Zone too.
To find out more about Designated Free Zones read: What is the meaning of VAT exempted Free Zone in UAE? - Designated Zones in UAE
2. UAE Residence Visa Options
Student's family visas, retirement visas, and remote working programs are few new additions to the list of UAE Residence Visa options available. Over the recent years, UAE has announced a host of residency options for the ex-pats to easily settle in the UAE with their family.
1. Students can Sponsor their Family
Under the new rule, an ex-pat student will be able to sponsor their families provided the student is financially capable and meet certain pre-set criteria.
2. Virtual Working Program
The next option is a 'Virtual Working Program' for those who live and work abroad and wish to settle in UAE.
Under the Virtual working program, you can relocate to Dubai and continue working for the organization you are working for remotely.
Entrepreneurs, professionals who live and work outside of the UAE can now stay in UAE and enjoy the facilities. They can as well sponsor the family to live in UAE for a year which is renewable by paying a fee and re-applying.
The following documents must be submitted to initiate the process
- Passport copy, (Valid for at least six months)
- Health Insurance with UAE Coverage
- Proof of employment from the current employer with one-year contract validity. (Minimum 18,000 AED salary)
- Last month's payslip and 3 month's bank statement
The visa process is coordinated by the Dubai Tourism Department. The documents have to be submitted to them along with the visa cost, medical insurance, and processing fee.
3. Retirement Visa
Recently UAE has introduced a 5-year renewable retirement visa available for ex-pats above 55 years and meet certain eligibility criteria.
The expats must have the following documents ready to apply for the retirement visa
- Valid medical insurance card covering UAE
- Meet the financial capacity (Any one of the 4 criteria)
- Own a Property with a value of no less than AED 2 million. (not mortgaged)
- Bank Deposit in UAE with no less than AED 1million
- Proof of income if you have a monthly income of no less than AED 20,000 or an equivalent other currency
- Combination of property value and savings amounting to a value of AED 2 Million. (Bank Deposit +Property Value)
- Passport copy of individual and dependents
- Marriage certificate copy for sponsoring spouse
- A current copy of the visa (if a resident of UAE)
- Copy of emirates ID (if a resident of UAE)
- Copy of valid health insurance policy
- Current home address and contact information
Documents for Proof of Funds
- Depending on the options chosen to apply the required documents must be submitted
- Property Title Deed copy for stating the value of property purchase
- Letter from the bank stating the value of the deposit
- Bank Statement for last six months and evidence of source of income as proof
4. Golden Visa
UAE has implemented long-term residence visas for ex-pats to the extent of their stay in UAE and to live, work, and study in the region.
The highlight of this Visa is there is no requirement for a national sponsor required. The visa is issued for the individual from the Federal Authority for Identity and Citizenship.
To know more about Golden Visa ( 1o-Year & 5-Year Long Term Residence Visa) read: How to Settle in UAE with Family - Choices Available for Expats
3. UAE Company Formation and Bank Account Opening
Opening a corporate bank account in UAE is an essential process for most companies to effectively manage the financial transactions involved in the business.
UAE has a robust network of international and local banks offering attractive business banking services. Depending on the company activities, annual turnover, and other commercials, investors can apply for a bank account with the right banking partners.
Experienced consultants such as AURION will assist you in selecting the right business banking network provider for your business by assessing your company portfolio and the nature of business operations.
To find out more about opening a business bank account read: Remote Free Zone Company Formation in UAE and Corporate Bank Account Opening
To find out more about living, working, study, and starting a company in UAE, talk to our expert Business Consultants right away!
Contact Us: Aurion Business Consultants
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