The landscape of business setup in the UAE continues to retain and enhance its appeal among foreign investors thanks to the recent reforms and incentives rolled out by the government. The reforms and incentives have proven to be a big relief for foreign investors and entrepreneurs tormented by the consequences of economic headwinds such as the Covid-19 pandemic. The business community has welcomed the reforms that started from the last half of 2020 and is optimistic that the policies will boost the robustness of business setup in Dubai and other emirates.
The fee waivers by Dubai and Abu Dhabi, National policies for Tech companies are some of the latest investor-friendly measures introduced in favour of foreign investors. The following are some of the progressive incentives and reforms that are poised to elevate the prospects of investors in the UAE:
Incentives by Dubai Government
The government of Dubai recently issued a host of incentives aimed to bolster the investors’ confidence in the emirate. The emirate, through Executive Council Resolution No. (19) 2021, waived the fee on 88 government services including the serviced rendered by the Department of Economic Development (DED). The DED will cut down the official fees charged on the issuance and renewal of trade licenses of business centres and the issuance of licenses for providing government services. It’s generally viewed as a positive measure to ease the financial pressure faced by investors along with bolstering the attractiveness of business setup in Dubai.
Few Waivers by Abu Dhabi Government
A week before Dubai’s fee waiver announcement, Abu Dubai surprised the investors by announcing a 94% cut in business setup fees. The cost of setting up a business in Abu Dhabi has now come down to AED 1,000, giving a shot in the arm for investors. The Abu Dhabi Department of Economic Development (ADDED) has also slashed license renewal fees for existing business owners to AED 1,000. Furthermore, the ADDED has announced a 71% reduction in the official requirement for starting a commercial business in Abu Dhabi. The ADDED has facilitated this by identifying and removing duplicate requirements and modifying existing requirements.
Changes in Mainland Ownership Rules
The long-pending demand of foreign investors came to fruition when the amendments to UAE Commercial Companies Law came into effect in 2021. As per the new amendments, foreign investors are now entitled to 100% ownership in the UAE mainland. The previous requirement of having a Local Sponsor (UAE National) holding at least 51% shares in the company has been removed.
From June 2021, foreign investors have been allowed to set up a Limited Liability Company (LLC) in the UAE with a single shareholder. Many existing LLCs owned by foreigners have changed into a 100% ownership structure since the rollout of the new regime. Investors can seek advice from business setup consultants in the UAE for incorporating a company with full ownership.
Golden Visas to Spur Investments
Expatriates, especially foreign investors, have played an undeniable role in shaping up the economic landscape of the UAE. Recently, the UAE has started recognising the efforts of eminent expatriates by granting a long-term residency visa program called the Golden Visa. Investors, entrepreneurs, and individuals with outstanding talents are entitled 10-year UAE residency by obtaining a Golden Visa. Furthermore, Golden Visa holders can sponsor their spouse and children without any hassle.
Special Strategy to Support Tech Firms
It was widely heralded as a breakthrough move when the UAE announced the rollout of the National Policy for Digital Companies. Designed to build a digital economy, the policy envisions the creation of 1,000 tech companies in the UAE over the next five years. Setting up a tech business in the UAE is the best way to leverage the opportunities associated with National Policy for Digital Companies. The government will also grant 100,000 golden visas to entrepreneurs, enterprise owners, start-ups and professionals who are well-versed in the tech field, especially coding.
Business Setup Consultants in the UAE: A One-Stop Solution
The landscape of business setup in the UAE remains attractive to foreign investors despite the economic headwinds such as the COVID-19 pandemic. Progressive reforms and economic incentives such as National Policy for Tech sector, fee waivers at the emirate level and the Golden Visa program have only bolstered the appeal of business setup in Dubai and other emirates. However, the investors need to make the right legal choices to ensure they succeed in the country.
The expert assistance of business setup consultants in the UAE such as Jitendra Business Consultants (JBC) helps the entrepreneurs make the right choices. JBC’s highly qualified company setup advisers can help investors with services such as visa processing, documentation, bank account opening etc. JBC also provides reliable compliance services including VAT return filing, audit, Economic Substance Regulation (ESR), Ultimate Beneficial Ownership (UBO) etc. Company formation in the UAE can be hassle-free with the right business setup partner such as JBC.