Affinitas Consulting is a leading specialist in the UAE for Business Setup | Efficient Accounting Services, Bookkeeping, Audit Report, Liquidation, Tax Consultancy
There is no personal income tax in the UAE. The upcoming corporate tax decree is by definition regulating corporate taxes only for legal entities.
All UAE companies are eligible to pay corporate taxes. Except qualified free zone companies
You must have the appropriate licence to conduct eCommerce activities. Governments offer various programmes to support and promote eCommerce businesses.
Yes, foreigners can open a company in Dubai both in a free zone and outside a free zone (in jargon: mainland companies LLC). Further, foreigners who own a company in the UAE can then receive a residence visa either as employees of the company or as investors.
The basic documents to start the process are: passport copy, curriculum vitae (CV), utility bill proving current residency, basic business plan for the company to be licensed. Throughout the process government entities and banks will require additional documentation related to the shareholders (and/or UBOs), directors.
Yes, investors purchasing a ready and fully paid property (minimum value: 700,000 AED) in Dubai are eligible to receive a visa linked to the property.
Corporate tax in the UAE is going to be 9%.
All legal entities need to start accounting for corporate taxes starting June 1, 2023 OR January 1, 2024 depending on which financial year of the company.
A Free Zone Person that is a Qualifying Free Zone Person can benefit from a preferential Corporate Tax rate of 0% on their “Qualifying Income” only.
In order to be considered a Qualifying Free Zone Person, the Free Zone Person must:
- maintain adequate substance in the UAE;
- derive ‘Qualifying Income’;
- not have made an election to be subject to Corporate Tax at the standard rates; and
- comply with the transfer pricing requirements under the Corporate Tax Law.
The Minister may prescribe additional conditions that a Qualifying Free Zone Person must meet.
If a Qualifying Free Zone Person fails to meet any of the conditions, or makes an election to be subject to the regular Corporate Tax regime, they will be subject to the standard rates of Corporate Tax from the beginning of the Tax Period where they failed to meet the conditions.
This is one of the quintessential questions we are asked all the time. There are 40+ free zones in the UAE and each one applies their own pricing depending on activity, number of shareholders, etc. etc. We only provide pricing after a careful analysis of the client’s needs.
Not all set ups are the same and only the expert knowledge of someone that has been in the market for a long time can advise the right set up as the combination of location, activity, type of company.
IMPORTANT: the type of setup highly impacts the ability to swiftly obtain and operate a bank account long term. Many clients and consultants focus only on the tactical task of setting up a company and obtaining a licence. We like to start from the clarity of the client objectives so that we can then provide the best advice that takes into consideration: licence, bank account, operational requirements so that all are aligned to satisfy and reach the objectives.
Beware of special promotions such as “visa for life” or other items, ask to be specific about the fees that pertain to the licensing authority, the consultant, government fees, etc.
A free zone visa cost is comprised of the following elements: free zone fees, medical fees, fingerprinting fees and consultant facilitation fees (all our clients for example are providing with VIP services to avoid queues and expedite process).
Each free zone and each emirate makes its pricing.
On average calculate no less than 1,200 USD per visa.
Employment and investor visas in the UAE last 2 years.