Middle East Resident Zero Tax Companies in 2022

Zero Tax Middle East Countries Dubai trading LLC Abu Dhabi LLC Bahrain LLC
Our recommendation in order of preference 1 2 3
Summary at a Glance
Total year 1 engagement set up costs? US$28,187 US$22,633 US$25,131
Total year 2 costs (incl. audit and tax)? US$9,850 US$12,180 US$7,662
Our Client must travel during company setup? No No No
Total engagement period? 3 months 3 months 3 months
Corporation tax rate on net profits? (click link) 0% 0% 0%
Average monthly skilled labour salary? (click link) US$2,150 US$2,150 US$564
Average monthly office rental per sq m? US$42 US$25 US$25
Must be a 51% shareholder for trading business Yes Yes No
Must be a 51% shareholder for services business No No No
Average monthly warehouse rental per sq m? US$30 US$20 US$10
English language proficiency % of population? 78% 50% 45%
Incorporation requirements
How long to set the company up? 2 months 2 months 2 months
Minimum number of shareholders? 2 2 2
Individual and corporate shareholders allowed? Yes Yes Yes
Minimum number of directors? 1 1 1
Resident director required? No No No
Minimum paid up share capital? US$1 US$1 US$2,660
Fast turnkey solution available? (click link) Yes No No
Fastest time Healy Consultants completed the engagement? 2 months 1 month 2 months
Corporate director(s) allowed? Yes Yes Yes
Public register of shareholders & directors? Yes Yes Yes
Tax and accounting considerations
Corporate tax payable? 0% 0% 0%
Withholding tax on dividends paid overseas 0% 0% 0%
Annual financial statements required? Yes Yes Yes
Statutory independent annual audit required? Yes Yes Yes
Export taxes on goods and local GST or VAT? 5% 5% 5%
Best holding company to extract dividends? Marshall Islands Brunei Singapore
Tax incentives for manufacturing start-ups? Yes Yes Yes
Access to double tax treaties? 66 66 61
Number of tax exempt free zones available? 31 31 3
GCC member? (click link) Yes Yes Yes
Corporate bank account considerations
Healy Consultants’ preferred bank? Noor Bank Emirates NBD Arab Bank
How long to open bank account? 5 weeks 4 weeks 2 weeks
Do I travel to open the bank account? No No No
Travel required to activate the bank account? Yes Yes Yes
Can open a US$ corporate bank account? Yes Yes Yes
Good internet banking available? Yes Yes Yes
Funds transfer currency controls No No No
Bank rating by World Economic Forum? 5.9 5.9 5.8
Ease of getting credit by WEF? score (1-7) 4.7 4.7 4.2
Employment considerations
Average skilled labour monthly salary? US$3,500 US$2,150 US$3,500
Average unskilled labour monthly salary? US$800 US$800 US$2,000
Average pension and insurance benefits % of salary? 12.5% 12.5% 9 %
Minimum national salary? None None US$800
Mandatory labor unions? No No No
Minimum notice to dismiss employees? 1 month 1 month 1 month
Minimum redundancy indemnity? 1 month 3 weeks N/A
Quota ratio of foreign workers to local staff? 3 to 1 3 to 1 2 to 1
How long to get work permit approved? 4 weeks 5 weeks 3 weeks
Manufacturing considerations
Cost per unit of electricity? US$ 0.04 0.04 0.08
Rank for getting electricity (click link) 4 4 73
Warehousing space rental (per sq. m.)? US$30 US$20 US$10
Ranking for transport infrastructure (click link) (1-7 best) 6.6 6.6 4.7
Ranking for customs procedures out of 10? (click link) 6.0 6.0 4.7
Average import duty % on raw materials? 0% 0% 0%
Government incentives for startups? Yes Yes Yes
Computer literacy % of population? 90% 86% 79%
Internet connectivity rating? Strong Strong Strong
Global business efficiency index? (click link) 23 23 26
Preferred manufacturing city? Dubai Abu Dhabi Manama
Proximity of sea port in kilometers? 11 66 13
Proximity of airport in kilometers? 31 36 7
Proximity of rail in kilometers? 0 0 0
Literacy % of population 90% 90% 95%
Local purchasing power (GDP per capita) US$43,876 US$43,876 US$24,692
Local market size (in millions) 2 2 1
Average annual inflation rate in 2014? 3% 3% 2.5%
Average unemployment rate in 2014? 2.6% 2.6% 4.1%
Ease of doing business index (click link) 22 22 53
Country rating (click link) AA AA BBB
Estimate of engagement costs US$ US$ US$
Healy Consultants engagement fees 7,950 7,950 10,900
Government fees 5,350 6,700 1,031
Corporate bank account opening 4,950 4,950 2,950
Project management fees 3,950 3,950 7,300
Other fees (refer to the invoice for a breakdown) 0 1,950 950
Estimate of total outgoings in Year 1 28,187 22,633 23,131
Draft sales invoice attached View invoice PDF View invoice PDF View 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