Client Profile
Our client, an international trader specializing in wholesale trade of electronics, solar panels, and batteries, sources products from Asia (China, Hong Kong, Taiwan, and Vietnam) and sells them to the EU market. Recognizing the UAE’s reputation as a global trading hub, the client aimed to enhance credibility, secure banking facilities, and operate in a tax-efficient environment.
Challenge
The client aimed to leverage Dubai’s reputation as a global trading hub to strengthen relationships with suppliers and buyers. They sought to establish a local trading team and office to support EU sales while managing supplier networks in Asia. Additionally, the client intended to benefit from the UAE’s favorable tax regime, including a 0% corporate tax rate and 0% VAT on exported goods, and secure banking facilities, such as letters of credit, to handle large international transactions. Ensuring compliance with transfer pricing regulations across multiple jurisdictions was also a key priority.
Solution Provided
We delivered a comprehensive suite of services to establish and support the client’s trading company
- Business Setup
Guided the incorporation process, selecting a free zone structure for 0% corporate tax benefits and ensuring regulatory compliance.
- Office Location Assistance
Identified and secured an office space suited for the client’s trading operations, reflecting professionalism and supporting operational needs.
- HR Services
Supported the recruitment and onboarding of a skilled sales team to manage supplier and client relationships.
- Banking Assistance
Facilitated bank account setup in both the UAE and the EU, including the negotiation of terms for letters of credit essential for bulk transactions.
- Transfer Pricing Documentation
Prepared and coordinated transfer pricing documentation to ensure compliance with UAE and international standards.
- VAT Advisory
Provided guidance on the UAE’s 0% VAT rate for exported goods, ensuring efficient tax handling for international trade.
Our tailored solutions enabled the client to focus on building relationships and scaling their operations.
Results Achieved
The company became fully operational within four months of initiation, with an established office, a functioning sales team, and secure banking facilities, including access to letters of credit. Dubai’s strategic location and reputation enhanced the client’s credibility with Asian suppliers and EU buyers. Additionally, the free zone structure ensured the client benefited from a 0% corporate tax rate, while the 0% VAT rate on exports provided cost efficiencies, enabling reinvestment in growth.
Client Feedback
The client highlighted the UAE’s advantages as a global trading hub, emphasizing the credibility it added to their operations. They appreciated the seamless setup process, including our assistance with HR, banking, and compliance. With a solid foundation, the client is well-positioned to expand their trading activities, leveraging Dubai’s tax and operational benefits.
Why Choose Dubai for International Trading Companies?
Key Advantages Include
0% Corporate Tax
Free zone companies enjoy a 0% corporate tax rate, maximizing profitability for international businesses.
0% VAT on Exports
The UAE’s VAT framework supports international trade by exempting exported goods from VAT.
Dubai’s standing as a premier trading hub enhances trust and credibility among global partners, suppliers, and clients.
Access to banking facilities, including letters of credit, ensures smooth and secure financial operations for bulk transactions.
A diverse and talented labor market supports sales and operational needs in a multilingual global business environment.
Dubai’s efficient regulatory environment ensures quick company setup, HR support, and compliance, enabling businesses to scale rapidly.
