Run a Business in UAE from Abroad
UAE offers an awesome lifestyle and a host of benefits and opportunities. UAE can be even titled as the Business capital. Many have come and left this place. A few have survived. Those who survived the climate met the expenses, outlived the hardships have always a successful entrepreneur saga to sing. As I told it isn’t easy to survive in a country like Dubai since it is not always possible or convenient for business owners to reside here. With careful planning and expert guidance, you can run a business from outside the Emirates and still benefit from much of what the country has to offer.
You don’t have to be a full-time resident in the UAE to own a company here. In fact, living abroad is no barrier to become successful in the UAE. Most UAE business owners choose to reside in the UAE to make the most of the amazing amenities, attractive business incentives, and thriving communities. But if full-time residency doesn’t meet your expectations regarding your lifestyle, you can still reap the rewards of owning a business from a different place. You just need to take care of a few important issues such as time spent in the UAE, tax implications and power of attorney.
If you know how long you want to stay, you can apply for an apt visa. In most cases, you will require a visa or entry permit which specifies how long you need to stay. So, first of all, understand the purpose of the visit and how long it takes and then apply for the Visa. So, it’s really important to understand different visa requirements. The exact amount of time needed for a UAE Business owner to spend in his business management in Dubai changes from entrepreneur to entrepreneur. If you have a good team in your UAE office it’s okay even if you don’t make a visit once in a while. But genuinely speaking, if you are a person who needs your hand everywhere it’s better visiting your office occasionally.
Citizens of GCC countries (Bahrain, Kuwait, Oman, Qatar, and Saudi Arabia) do not require a visa to enter the UAE and only need to show their passport/ID at their port of entry. Citizens from the US, China, Australia, the UK, and 16 other designated countries can get a 30-day visa on arrival. Those from 40 other listed countries can get a 90-day visa, as detailed on the official UAE government website. Anyone outside the GCC and who is also not eligible to apply for a visa will be required to obtain an entry permit prior to arrival. This requires a sponsor which will usually be an Emirati citizen, an expat with a valid permit, a private company, or a free zone.
Now coming to paying the taxes, it isn’t necessary to pay your taxes based on your UAE income. It depends on your country of residence. Again, the tax amount differs from entrepreneur to entrepreneur and business to business. If you have a residence visa and spend more than six months continuously in the UAE, you are considered a tax resident here. As the UAE income tax is set at 0% you don’t have to pay anything on your income.
Certain countries may even have an eye on you regarding your lifestyle status and family living such as whether you are accompanied by your family, where your main work or business is based, where your bank accounts are held, and where your property and other assets are located. The good news is the UAE has drawn up a series of double tax agreements (DTA) with around 100 different countries with ‘tiebreaker provisions’ to determine which country can tax your worldwide income. This helps you avoid paying tax twice unnecessarily. Do take a piece of expert advice regarding your tax payment status.
Now checking on the last nut, not the least step, appointing a Power of attorney is really important and highly beneficial for your business set up in the Emirates. If you reside away from UAE it is really necessary and important to appoint a Power of Attorney to check on your business and manage it. A power of attorney (POA) is a document that allows you to appoint a person or organization to manage your affairs. This helps the smooth-running of your Dubai based business. A general power of attorney gives broad powers. Trust is one of the important factors to be taken care of while appointing a Power of Attorney. With the simple steps followed you can run a great business in UAE residing somewhere afar.
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