After the initial territorial conflicts, the UAE and Iran have good relations now. Iran is offsetting the impact of international sanctions with the increasing cooperation in trade with the United Arab Emirates. Well, there are several benefits of relocating an Iranian company to the UAE.
The happenings in the Middle East during recent years are reshaping the ties between Iran and the UAE. Entrepreneurs in Iran are eager to move their businesses to Dubai, Abu Dhabi, and Sharjah. Whereas, some Iranian business owners want to open branch offices in the UAE to ensure global access.
Cultural openness of the UAE and closeness to Iran is a big factor in this corporate relocation. Professional consultants can easily help Iranian entrepreneurs in setting up the business in the UAE. While, the Iranian diaspora in the UAE can easily help new Iranian investors settle in the country.
causing both hope and concern in the Middle East.
Moreover, current geopolitical tensions between Iran and Israel, Iranian investors and entrepreneurs are looking forward to relocating their businesses to a safer place, and the best place to move your business on this planet is none other than UAE.
Let’s see what benefits UAE is offering to the Iranian nationals for relocating businesses there.
No doubt, the UAE is attracting foreign businesses seeking advantageous tax regimes and global positioning. It has become possible due to its forward-looking economic strategies and investor-centric regulations. Let’s explore the primary rewards which Iranian businesses moving to the UAE can get.
Stable political and economic ecosystem
The UAE is known for its stable financial atmosphere, strategic location, and robust infrastructure. Together with providing a dynamic business ecosystem, it offers loads of tax incentives. Because of its commitment to the economic diversification and innovation, the UAE is a great option for Iranian investors.
The UAE is strategically located at the crossroads of three continents. It provides Iranian businesses with direct access to over three billion consumers within a four-hour flight radius. With state-of-the-art infrastructure like Jebel Ali Port and Dubai International Airport, it ensures seamless connectivity for goods and services. Numerous ambitious projects are supporting the role of the UAE of a logistics and trade powerhouse in the MENA region.
Open growth environment for Iranian investors
The UAE's peaceful political climate, dedication to law and order, and solid legal framework is beneficial for Iranian investors. Its low crime rate and strong legal structure safeguard investment rights, boosting worldwide corporate trust. The UAE's extensive diplomatic relations and involvement in international organizations position it as a dependable global partner.
Extreme growth potential
The UAE's economy has shifted from oil-dependent to an international hub for commerce, tourism, banking, and innovation. Its government's "We the UAE 2031" vision seeks to increase GDP to AED 3 trillion by 2031. Therefore, the UAE is set to encourage the sustainable and inclusive economic growth.
Free trade agreements
Iran can take advantage of the free trade agreements (FTAs) that the UAE has signed with other countries. They include the Comprehensive Economic Partnership Agreements (CEPAs) with countries like India, Turkey, and Indonesia. Because, these agreements reduce tariffs, improve market access, and facilitate smoother trade flows.
For UAE-based businesses, FTAs make their goods and services more competitive in the international markets. For example, the UAE-India CEPA has boosted bilateral trade by eliminating tariffs on various goods. The UAE's global trade strategy, bolstered by DTAAs and FTAs, enables seamless business operations across borders, enhancing its position as a hub and empowering investors in an interconnected world.
Lavish lifestyle and infrastructure
The UAE offers a high quality of life with advanced healthcare, vibrant cultural experiences, and international schools. Cities like Abu Dhabi, Dubai, and Ajman offer a cosmopolitan lifestyle to Iranians. Also, the iconic landmarks like the pristine beaches, Burj Khalifa, and world-class shopping centers entice everyone.
Minimal tax and double taxation agreements
The UAE offers a tax-friendly environment, with low corporate income tax and zero personal income tax for residents and enterprises. This exemption covers most of the UAE, including key business centers like Dubai and Abu Dhabi. It provides cost reduction opportunities and increased profitability for businesses accustomed to higher tax environments.
Also, the UAE has signed double taxation avoidance agreements (DTAAs) with numerous global nations. Accordingly, these agreements prevent foreign businesses from being taxed in their home countries. Thereby, they enhance their global tax planning while adhering to international regulations.
Business registration process for Iranians in the UAE
This is the step-by-step procedure for Iranian citizens to establish their own company in the UAE.
Do market research and choose business activity
Iranian business owners in UAE must first select their business activity, including details of trading products or consulting. Properly perform market research as aligning corporate operations with specific user requirements is crucial. Because, the overwhelming options can make it difficult to choose the best.
There are different types of licenses available in the UAE, including industrial, professional, and commercial licenses. Industrial licenses are suitable for manufacturing companies, while commercial licenses are mandatory for commerce activities. Professional licenses are necessary for providing specialized services to people or other businesses. Iranian entrepreneurs must choose the license that best covers their offerings in the UAE.
Select legal jurisdiction
Iranian citizens must decide whether to operate a business from the free trade zone or on the mainland. Free zones offer quick registration mechanisms, financial growth incentives, and assistance. While, mainland businesses can trade directly in UAE markets and sign government agreements. Expert business consultants can assist in determining the right jurisdiction for your Iranian company in the UAE.
Get appropriate license
Obtain the suitable license from the Department of Economic Development (DED) for mainland. In case, you are incorporating a company in a free zone, then you have to acquire the license from its authority. Submit the essential legal documents, pay the fee, and receive the license after the approval.
Open a corporate bank account
Last but not the least, Iranian investors must open bank accounts for their businesses in the UAE. It can turn out challenging for business people from other countries. However, professional consultants can help with both international and local banks, making the process easier for Iranian nationals.
Key takeaways
The UAE's diverse business ecosystem attracts international entrepreneurs seeking economic opportunities. Geopolitical tensions and economic sanctions on Iran are leading Iranian entrepreneurs to look for economic opportunities abroad. Fair business laws, international trade access, and friendly economic ties with the UAE are encouraging Iranian investors.
Here are some noteworthy findings of the UAE’s corporate ecosystem which are driving Iranian business relocation.
· The UAE’s economy has shifted from oil-dependent to a global hub for commerce, tourism, banking, and innovation.
· "We the UAE 2031" vision of the UAE targets to boost the GDP to AED 3 trillion by 2031.
· The UAE attracted $30 billion in foreign direct investment in 2024 thanks to regulations simplification, modern infrastructure, and business-friendly environment.
· Iranian businesses are flocking to the UAE due to its stable political and economic environment, investor-centric regulations, and potential for growth.
· The country's stable atmosphere, strategic location, and robust infrastructure offer tax incentives and a dynamic business ecosystem.
· UAE has signed double taxation avoidance treaties with global nations, enhancing global tax planning while adhering to international regulations.
· Free Trade Agreements (FTAs) with countries like India, Turkey, and Indonesia facilitate seamless business operations across borders.
· The UAE's stable political climate, dedication to law and order, and strong legal framework make it a safe haven for investors and expats.
Do you want to relocate your Iranian company to the UAE? You can do it with little fuss with the assistance of professional consultants like KWS Middle East. Also, they can help you in opening a branch office in the UAE for your Iranian business.
