Sheikh Mohamed bin Zayed Al Nahyan’s recent visit to France is expected to bolster the French investors’ interest in the landscape of business setup in Dubai. The two countries have signed various agreements which may enhance bilateral investments. However, France has long been a strong trading partner of the UAE with Dubai hosting the lion’s share of French businesses operating in the country.
In the wake of the recent trade developments between the two nations, business setup consultants in Dubai consider this as an opportune time to discuss certain key considerations French investors must mind while starting a business in this region. Read ahead to know the key factors French investors must consider before setting up a business in Dubai:
Strong Trade Partnership
Historically, the two countries share a strong trading partnership with the UAE being the second-largest customer and the third-largest supplier of France in the Middle East region. The bilateral trade of around USD 5.7Bn between the two countries also motivates the French investors to initiate the process of business setup in Dubai.
Boost from the New Trade Deal
French President Emmanuel MacronMacron and the UAE President signed a series of economic deals during the latter’s visit to France. The agreements cover strategic areas including energy, defence, standardisation, space, health, education, petroleum etc. The benefits of such economic agreements are likely to enhance the landscape of business setup in Dubai.
Strong Presence of French Businesses
Meeting and collaborating with fellow French entrepreneurs and investors will be easy as over 600 French companies are operating in the UAE. Among them, over 300 are established in Dubai. More than 30,000 people benefit from the French companies in the form of employment. Since a strong business community has already been established, investors need not feel isolated while commencing the process of company formation in Dubai. Moreover, business setup consultants in Dubai can take care of the formalities.
Investments in a Liberal Taxation Regime
The UAE remains appealing to French investors not only due to the attractive business opportunities but also due to the low taxation. The climate of taxation in France is quite harsh, which makes the French investors seek out moderately taxed countries such as the UAE. Foreigners are not subjected to personal income tax in the UAE. However, the businesses are subjected to Value Added Tax (VAT) at a meagre rate of 5%.
Even the proposed Corporate Tax (likely to be effective from June 1st 2023) at 9% is one of the lowest in the Middle East region. Moreover, the tax relations between the two countries are governed by the provisions of the Double Taxation Agreement (DTA), which helps the investors to avoid double taxation. Consult with business setup consultants in Dubai for any tax-related queries.
New Reforms a Boost for French Investors
The landscape of business setup in Dubai has been enhanced by the government by introducing a set of progressive reforms. These reforms include 100% foreign ownership in mainland companies, Green Visas, and 10-year Golden Visas for investors, entrepreneurs, artists, students and professionals. These reforms have bolstered the inflow of foreign investments into the UAE from countries such as France.
Not Hard to Blend in
Living in Dubai is no longer a tough task for French investors and their dependents. Data suggest that there are more than 30,000 French Nationals living in the UAE, with the majority of them based in Dubai. Moreover, the UAE government recently decriminalised many Western practices and habits that were regarded as taboo per Islamic Law. For instance, the country recently decriminalised alcohol consumption and cohabitation of unmarried couples.
This means secular-leaning French nationals can confidently initiate the process of business setup in Dubai without compromising much on their lifestyle choices. Moreover, the UAE offers efficient airlines and logistics facilities to international firms linking to the Middle East, North Africa, and West Africa – all of which have large French-speaking populations.
Hire the Best Business Setup Consultants in Dubai, UAE
Hope the article has enlightened you on the nitty-gritty of business setup in Dubai that French investors must consider in light of the recent bilateral agreements. Being one of the leading business setup consultants in Dubai, Jitendra Business Consultants (JBC) can help foreign investors, including French entrepreneurs, to meet the company formation requirements. Foreign investors can up their game with our bespoke advice on key requirements such as license approval, visa processing, bank account opening, document drafting etc.
We have a dedicated team of highly qualified professionals who are well-versed in the UAE Immigration Law and Labour Law. By imparting their expertise and experience, the consultants can make the process of business license approval in Dubai easier. We will also keep you on the right side of the law by providing services related to Economic Substance Regulation (ESR), Ultimate Beneficial Ownership (UBO), VAT, Corporate Tax, and Anti-Money Laundering (AML).