Middle East Resident Zero Tax Companies in 2023

Zero Tax Middle East CountriesDubai trading LLCAbu Dhabi LLCBahrain LLC
Our recommendation in order of preference123
Summary at a Glance
Total year 1 engagement set up costs?US$28,187US$22,633US$25,131
Total year 2 costs (incl. audit and tax)?US$9,850US$12,180US$7,662
Our Client must travel during company setup?NoNoNo
Total engagement period?3 months3 months3 months
Corporation tax rate on net profits? (click link)0%0%0%
Average monthly skilled labour salary? (click link)US$2,150US$2,150US$564
Average monthly office rental per sq m?US$42US$25US$25
Must be a 51% shareholder for trading businessYesYesNo
Must be a 51% shareholder for services businessNoNoNo
Average monthly warehouse rental per sq m?US$30US$20US$10
English language proficiency % of population?78%50%45%
Incorporation requirements
How long to set the company up?2 months2 months2 months
Minimum number of shareholders?222
Individual and corporate shareholders allowed?YesYesYes
Minimum number of directors?111
Resident director required?NoNoNo
Minimum paid up share capital?US$1US$1US$2,660
Fast turnkey solution available? (click link)YesNoNo
Fastest time Healy Consultants completed the engagement?2 months1 month2 months
Corporate director(s) allowed?YesYesYes
Public register of shareholders & directors?YesYesYes
Tax and accounting considerations
Corporate tax payable?0%0%0%
Withholding tax on dividends paid overseas0%0%0%
Annual financial statements required?YesYesYes
Statutory independent annual audit required?YesYesYes
Export taxes on goods and local GST or VAT?5%5%5%
Best holding company to extract dividends?Marshall IslandsBruneiSingapore
Tax incentives for manufacturing start-ups?YesYesYes
Access to double tax treaties?666661
Number of tax exempt free zones available?31313
GCC member? (click link)YesYesYes
Corporate bank account considerations
Healy Consultants’ preferred bank?Noor BankEmirates NBDArab Bank
How long to open bank account?5 weeks4 weeks2 weeks
Do I travel to open the bank account?NoNoNo
Travel required to activate the bank account?YesYesYes
Can open a US$ corporate bank account?YesYesYes
Good internet banking available?YesYesYes
Funds transfer currency controlsNoNoNo
Bank rating by World Economic Forum?
Ease of getting credit by WEF? score (1-7)
Employment considerations
Average skilled labour monthly salary?US$3,500US$2,150US$3,500
Average unskilled labour monthly salary?US$800US$800US$2,000
Average pension and insurance benefits % of salary?12.5%12.5%9 %
Minimum national salary?NoneNoneUS$800
Mandatory labor unions?NoNoNo
Minimum notice to dismiss employees?1 month1 month1 month
Minimum redundancy indemnity?1 month3 weeksN/A
Quota ratio of foreign workers to local staff?3 to 13 to 12 to 1
How long to get work permit approved?4 weeks5 weeks3 weeks
Manufacturing considerations
Cost per unit of electricity? US$
Rank for getting electricity (click link)4473
Warehousing space rental (per sq. m.)?US$30US$20US$10
Ranking for transport infrastructure (click link) (1-7 best)
Ranking for customs procedures out of 10? (click link)
Average import duty % on raw materials?0%0%0%
Government incentives for startups?YesYesYes
Computer literacy % of population?90%86%79%
Internet connectivity rating?StrongStrongStrong
Global business efficiency index? (click link)232326
Preferred manufacturing city?DubaiAbu DhabiManama
Proximity of sea port in kilometers?116613
Proximity of airport in kilometers?31367
Proximity of rail in kilometers?000
Literacy % of population90%90%95%
Local purchasing power (GDP per capita)US$43,876US$43,876US$24,692
Local market size (in millions)221
Average annual inflation rate in 2014?3%3%2.5%
Average unemployment rate in 2014?2.6%2.6%4.1%
Ease of doing business index (click link)22 22 53
Country rating (click link)AAAABBB
Estimate of engagement costs US$US$US$
Healy Consultants engagement fees7,9507,95010,900
Government fees5,3506,7001,031
Corporate bank account opening4,9504,9502,950
Project management fees3,9503,9507,300
Other fees (refer to the invoice for a breakdown)01,950950
Estimate of total outgoings in Year 128,18722,63323,131
Draft sales invoice attachedView invoice PDFView invoice PDFView invoice PDF

Contact us

For additional information on our incorporation services, please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi