Dubai is the leading spot for setting up businesses for foreigners, especially Russian entrepreneurs, due to the free zones for incorporating business setups. Regardless of being an investor or a business owner, you can include a limited liability company on Dubai’s mainland or any of the free trade zones in Dubai. Here are some reasons to establish a business setup in Dubai for Russian Entrepreneurs.
Business Setup in Dubai for Russian Entrepreneurs | Advantages
The war between Russia and Ukraine has badly affected many business enterprises within the country. On the other hand, Dubai is one of the world’s leading business hubs with more than 20 free trade zones, giving Russian investors plenty of options. Dubai has transformed the lives of many entrepreneurs and investors. Here are some reasons to set up a business in Dubai for Russian entrepreneurs and investors.
- Safety: The war between Russia and Ukraine caused financial and political unrest, which adversely affected the economy. The crime rate in the UAE is lower than Russia and other countries in the Middle -East countries owing to stringent laws.
- Previous trade relations with the UAE. The Swift messaging network removed some lenders and imposed sanctions on the Russian central bank on the West side. This change badly affected Russian entrepreneurs, making it hard for them to invest abroad. However, Dubai is a renowned investment hub that accommodates foreign tourists. The simple process for starting the process of business setup in Dubai succeeded in making the Russian entrepreneurs set up their businesses.
- Favorable Tax Regimes: Russia and UAE have been formidable trade partners for the past 50 years and enjoyed excellent business relations. The statistics state that 4000 Russian companies operate their business activities in the UAE. In 2020, the Russia-UAE venture generated a revenue of USD 3.3 billion and accomplished the target of USD 4 billion in 2021 despite the worldwide pandemic hit. The UAE-Russia business partnership continued to climb in 2022, generating a revenue of $9 billion. The duo continues to retain the top spot among other Arab countries.
- Availability of residence visa options based on investment: Russian investors also enjoy tax benefits where the tax rate is low. An individual’s income less than AED 375,000 is tax-free. Even if they pay 9% of the corporate tax from 1st June 2023, the tax rate is lowest in the middle-east region in the UAE.
- Residence visa options based on investments: The Russian investor can set up a hassle-free business in Dubai or even get a UAE residence visa with minimal formalities. The UAE made recent amendments, updating residence options to attract foreign investors. Unlike other nationalities, it is easier for Russians to get a family visa to accommodate their family members to commence a business setup in Dubai. Most Russians prefer exclusively investing in the real estate business to obtain residency permits. According to recent sources, the real estate business of the Russians increased between January and June 2022.
- 100% ownership: The free zones in Dubai always offered foreigners to establish their business, especially to the Russians. The UAE accommodated foreign business owners to get a trade license and perform multiple business activities according to DED regulations. The Russians also enjoy 100% business ownership, 100% capital, profit repatriation, and 0% tax with contemporary infrastructure.
The UAE regulations for each country vary according to their conditions and their affiliations with them. Due to Russia’s long-term benefits, the formalities with them are minimal.