Abu Dhabi Global Market (ADGM)

1. DOING IN THE UAE BUSINESS KPI BUSINESS ADVISORS www.kpi-global.com DOING BUSINESS IN THE UAE 1

2. Overview Why setup in Dubai/UAE? Some of the reasons: This document answers some basic questions that you may have on doing business in the United Arab Emirates. 1.Can serve as a hub for company operations in the Middle East. All profits are accrued in the Dubai company, and there is no tax payable on these profits to any authority in the UAE. Dubai, or Sharjah, or Ras al-Khaimah…or UAE? Dubai and the United Arab Emirates are usually used interchangeably, underlining the visibility of brand Dubai vis-à-vis the other Emirates. The UAE comprises 7 emirates, or city-states: 2.Can cater to the UAE market, which is growing at a fast rate. Good opportunities in various sectors. nAbu Dhabi (capital) nDubai Northern Emirates 3.Can set up offshore holding structures for investments worldwide. 4.Can serve as a logistics hub for the region and Europe. Excellent road, sea and air connectivity 5.Existing Double-taxation agreements with over 50 countries nSharjah (cultural centre) nAjman nRas al-Khaimah (very aggressive in marketing cost-effective services) nFujairah nUmm al-Quwain Most businesses that wish to establish in the UAE, look at Dubai as their first option. The Northern Emirates are more economical though, and provide excellent value options for manufacturing and trade. Major free zones in the UAE ABU DHABI Mainland or Free Zones? ADGM (financial activities) The UAE mainland has certain designated special economic zones, called Free Zones, which offer many benefits to attract investors to set up operations. There are some restrictions though. twofour54 (media) Masdar (clean technologies) Free Zones are an ideal base for companies that wish to conduct re-export activities, and international trade. Goods can be imported and re-exported (within 6 months) with 0% duty. An example would be a furniture trading company that wishes to have a logistics base in the UAE; it can set up an entity in a free zone (with warehouse facilities if required) and supply the MENA (Middle East and North Africa) and European regions through this facility. It can also wholesale its products within the UAE through distributors. Airport City (trading & services) Kizad (manufacturing) DUBAI – 30+ free zones JAFZA Mainland companies are ideal where the company wishes to retail within the UAE, and/or cater to Government entities. In the example above, if the furniture trading company wishes to set up a showroom in Dubai, it would have to incorporate a mainland company. Dubai Airport Free Zone Dubai Multi Commodities Centre (DMCC) DOING BUSINESS IN THE UAE 2

3. Differences between mainland & free zone entities Dubai World Central (DWC) Ownership UAE Mainland 51% in the name of a UAE National, 49% foreign Free Zones 100% foreign ownership Dubai Internet City (internet- related activities) Dubai International Financial Centre (DIFC) (financial activities) Tax structure exists, not implemented, hence 0% corporate, personal tax Guaranteed tax holidays (25-50 years) Tax Multiple departments Single-window clearances Clearances/Procedures SHARJAH 5% import duty 0% (if re-exported within 6 months) Customs SAIF Zone Hamriyah Free Zone (trading, services and manufacturing) Can retail, cater to Government entities, no restrictions Can wholesale to local market, usually cannot bid for Government tenders Restrictions on activities RAS AL KHAIMAH Two free Zones (trading, services and manufacturing) What are the advantages available to companies that set up in a free zone? AJMAN Ajman Free Zone (trading/services) All the free zones offer the following main benefits: 100% foreign ownership Guaranteed tax holidays (corporate/personal tax) No restrictions on capital repatriation 0% import & export duties No currency restrictions No restrictions on foreign talent/employees Excellent infrastructure/single window clearances Onsite customs Ummal-Quwain and Fujairah have one free zone each (trading/services) § § § § § § § § CONTACT US Rohit.ghai@kpi-global.com +971 4 455 1010 /+971 55 290 6757 (mobile) What services can KPI offer your clients? KPI offers turnkey solutions for market entry, starting from feasibility studies to analyzing the business requirements and advising on the best options and structures available. MARKET RESEARCH | FEASIBILITY STUDIES | COMPANY SETUP | HOLDING STRUCTURES | VISAS & RESIDENCY | AUDIT | ACCOUNTING | BUSINESS CONSULTING Visit the link below to know more information on the structures, options and costs involved in doing business in the UAE: http://www.kpi-global.com/company-formation-in-uae/ DOING BUSINESS IN THE UAE 3