It is no secret that the UAE has always been a popular business destination among self-employed individuals. But what exactly is the reason behind the UAE’s popularity as a business hub. What makes the UAE offer unrivalled opportunities to the self-employed? Let’s find out.
Here are the 7 main benefits of being self-employed in the UAE:
- A Booming Economy
- Entrepreneur-Friendly Tax Laws
- Stable Governance
- Legal Framework
- Availability of Labour
- World-Class Infrastructure
- Flexible Options to Set up a Business
1. A Booming Economy
The UAE is the second-largest economy in the GCC, and also one of the most open economies across the world. With a high per capita income, the UAE has a thriving economy which is further expected to increase by 5-6% in 2022. The UAE government in recent years has taken proactive steps to considerably diversify the economy and attract foreign investment.
2. Entrepreneur-Friendly Tax Laws
The UAE has one of the most favourable tax regimes in the world. With no taxes on income, inheritance, and capital gains, the UAE’s tax system is what attracts entrepreneurs the most. From June 1, 2023, onwards, corporate tax will be levied on businesses with an annual income exceeding 375,000. At 9%, the UAE’s corporate tax is amongst the lowest in the world. Additionally, free zone and offshore companies would not be liable for corporate tax provided they adhere to certain guidelines.
3. Stable Governance
The UAE is one of the most politically stable countries in the world. The UAE maintains peaceful relations with neighbouring countries and other nations around the world. Furthermore, the UAE is a member-nation of GCC, the Arab League, and the UN.
4. Legal Framework
As of today, the UAE incorporates a legal framework that is one of the most efficient for setting up a business. The UAE has constantly revised its laws in favour of entrepreneurs. As an example, the government has now relaxed the mandatory requirement of a local sponsor for setting up a mainland business. This revolutionary change is bound to attract more and more entrepreneurs to set up a business in the UAE.
5. Availability of Labour
The UAE has always attracted employment seekers from around the world. As of today, the UAE has a diverse workforce, thanks to the opportunities for high-paying jobs that the country offers. The UAE has no dearth of skilled and unskilled workers alike, and any entrepreneur with a business here benefits from a diverse talent pool.
6. World-Class Infrastructure
The UAE is world-renowned for the ultra-modern infrastructure it offers. Any entrepreneur setting up a business here can benefit from the top-notch infrastructure available in the form of commercial centres, free zones, business parks, transportation, telecommunication, utilities, and so on.
7. Flexible Options to Set up a Business
Another significant benefit of being self-employed in the UAE is the availability of options for business setup. Businesses could be set on the mainland, in free zones, or, in an offshore jurisdiction. While the mainland supports almost all kinds of business activities, anyone seeking an industry-specific environment could opt for a free zone. Moreover, special freelancer visas were rolled out in recent years for those who wish to practice a profession without a long-term commitment to a single employer.
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