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November 07, 2018
Apart from significant tax optimization, an onshore company in a Free Trade Zone can greatly minimize the cost of production and/or operational control of the operative business in the country. Due to the absence of corporate tax on most types of business activities and no income taxes, minimal deductions related to the payment of wages, the UAE are a very effective place to do business.
In addition to significant tax advantages, the UAE have well-developed infrastructure, cheap energy and favorable geographical position in the region. The Emirates are favored from other countries by progressive and friendly legal framework for doing business.
The uniqueness of onshore companies registered in the UAE Free Zones is that there are no taxes despite the fact that a company can have a real working office and actually be managed in the UAE.
In fact, on-shore company registered in the Free Trade Zones of the United Arab Emirates – is not offshore, but a full resident company with no taxes (except taxes on the oil industry and tourism).
Furthermore, a company that is registered in a Free Trade Zone allows its owner to get a resident visa of the UAE.
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