Why Businesses Are Moving from Canada to Dubai?
Table of Contents
Introduction
The year 2021 marked a significant paradigm shift in the business landscape, particularly for entrepreneurs looking to relocate from Canada to Dubai. This move was spurred by various factors, ranging from the enticing tax structures of Dubai to improved business opportunities and an overall enhanced quality of life. In this comprehensive exploration, we delve into the multifaceted reasons driving this migration trend and illuminate the role of GenZone, a premier service provider, in facilitating a smooth transition for businesses.
Tax Advantages in Dubai
At the forefront of this mass migration is Dubai’s unparalleled tax environment. With a corporate tax rate set at a mere 9% and a 0% income tax rate, Dubai stands as a beacon for businesses seeking favorable tax conditions. This section delves into the profound impact these tax rates have on personal finances, emphasizing the importance of retaining a significant portion of earned income. The article aims to provide a thorough understanding of how these tax advantages can be a game-changer for businesses contemplating the move.
Understanding the Nine Percent Corporate Tax
The nine percent corporate tax is applicable only to companies with business profits exceeding 375,000 Dirhams or approximately 102,000 US Dollars. Companies generating less than this threshold are exempt from corporate taxes, positioning the UAE’s tax rate as one of the lowest globally.
This move aligns with international efforts to combat tax avoidance while signaling the UAE’s commitment to maintaining an attractive business environment to support startups, small businesses, and overall economic growth. Compared to the global average corporate tax rate of 23 percent and Europe’s average of 21 percent, the UAE’s nine percent remains highly competitive.
Ease of Setting Up Business
The UAE has become an attractive destination for foreign businesses looking to expand their global reach or relocate, thanks to its more than 50 free zones, with many more in development.
The advantages of conducting business in a UAE free zone are numerous, including:
- Complete foreign ownership of the business
- Access to high-quality logistics facilities
- A vast pool of skilled and multicultural professionals
- Economies of concentration, with some zones dedicated to specific industries
- Easy recruitment of international employees, with one-stop-shop services for work visas provided by all free zones
- Tax holidays that typically last 15 to 50 years
- Exemption from import and export taxes
- 100% repatriation of capital and profits
- Corporate tax exemptions that can last up to 50 years
- Eligibility to apply for the UAE Tax Residency Certificate
How can GenZone help?
Enhanced Quality of Life
As one of the world’s most modern and fastest-growing metropolises, Dubai has become the city of opportunity for millions of expat professionals and their families.
Named the world’s most diverse city in Resonance Consulting’s 2021 World’s Best Cities Report, Dubai’s status as a global cultural melting pot is evidenced by the impact foreign-born residents have on every area of the city’s society and economy.
Dubai’s success is underpinned by its commitment to providing expatriates with unique life experiences, career opportunities and living standards that not just surpass those of their home countries, but rate among the world’s best overall.
Dubai’s cutting-edge business environment draws talent from across the world, who are keen to capitalise on the city’s commitment to creating an innovation ecosystem that positions the emirate at the forefront of the fourth industrial revolution. A place where entrepreneurs and investors thrive side by side, the future of business is in Dubai.
The city’s status as a growing knowledge hub is also enhancing its attractiveness as a business destination. Central to this is the city’s knowledge ecosystem underpinned by world-renowned academic institutions and cutting-edge research facilities that enterprises and individuals alike can leverage to their advantage.
Dubai is also home to some of the world’s finest medical facilities delivering cutting-edge healthcare services to residents and visitors to the city.
GenZone’s VIP Process
Recognizing the challenges faced during their own relocation, the author introduces GenZone’s VIP process as a solution to streamline the transition. This section delves into the intricacies of the service, offering a “done-for-you” experience to spare clients from the struggles and potential financial losses associated with navigating a new business landscape. GenZone promises a customized plan for each client, ensuring a smooth relocation process within a concise 30-day timeframe.
