Once most known for its warm climate, highly-developed infrastructure, and low crime rate, which often drew families to relocate on a private basis, Dubai, this pearl of the Persian Gulf has now become a global hub for entrepreneurs. It is particularly popular amongst British businesses, largely due to changes in the resident non-domiciled, or ‘res-non-dom’ regime set to take effect in early April this year. About 180,000 Brits currently live in the largest emirate of the UAE, more than live in Oxford.
Global Tax Assistant is a consultancy specialising in accountancy, tax structuring, business registration, and tax law safeguarding. In an interview with Kommersant UK, Smbat Alikhanyan, the company’s co-founder and CEO, explained how to easily register a business in Dubai, secure a visa, relocate, and save a fortune on taxes.
You co-founded Global Tax Assistant with Anara Malakhova in 2023. How did the idea for the company come about? What was your primary goal and what challenges did you face?
The idea to found the company came about in 2022 when Russian businesses began relocating to Dubai en masse and foreign companies started closing their branches and ceasing operations in Russia. This meant a large number of highly qualified professionals specialising in international law, taxation, and international financial reporting standards found themselves out of work, while conversely, the businesses that had previously relied on their services and were now setting up new offices in the UAE were left without legal and accounting support (the ‘Big Four’ companies, for instance, had not just broken off their cooperation with Russian companies; even those with just a whiff of Russian capital were affected). At that moment, I saw an opportunity and suggested that Anara become my partner in founding a consultancy in Dubai. We had both previously run successful businesses in Russia: I provided legal services, while she had achieved great things in accountancy.
Over the past two years, Global Tax Assistant has become a market leader in its field within the Emirates (it holds the top spot amongst Russian speakers). The core team that built the company consists of former employees of Deloitte, McKinsey, and PricewaterhouseCoopers. The team includes over one hundred specialists with extensive experience in various fields. We specialise in providing accounting and legal services, tax structuring, and conducting audits according to international standards. Our clients include large companies that are leaders in their respective industries; the restaurant business, manufacturing, trade and the nuclear sector. More than a thousand clients regularly turn to us.
Why did you choose the UAE? What attracted you to this market?
Firstly, because of its geographic location; it's just a four-hour flight from both Moscow and London. Secondly, the UAE is perhaps the only country in the world where the population is growing by an average of 20% annually, and the number of registered companies is increasing by 20-30%. In my opinion, this economic miracle is due to the UAE’s policy of neutrality; the country doesn’t get involved in geopolitical conflicts. The currency is stable and has maintained the same exchange rate to the dollar for the past twenty years. Additionally, both Abu Dhabi and Dubai consistently rank among the top three safest cities in the world, not only in terms of physical safety but also for economic security, with low taxes, capital protection, and clear immigration policies. Thirdly, the UAE has a well-developed transport and port infrastructure. I believe the Emirates are only at the beginning of their growth trajectory, and the momentum will continue to accelerate.
What services does your company provide? Do you have competitors? If so, what are your advantages over them?
Our first area of service is setting up and maintaining accounting systems, both through outsourcing and by placing our employees directly in clients’ offices. Currently, we provide regular accounting services to about three hundred companies.
The second area is tax structuring. The UAE is an international hub, and companies operating here typically have branches in other countries. We specialise in cross-border international business structuring with a focus on taxation, helping clients determine the optimal structure, offering consultations, and creating solutions that work efficiently not only in the UAE but also across other Gulf countries while ensuring minimal tax burdens in full compliance with the law.
The third area is business registration. We can help with all legal structures, in any jurisdiction (including those governed by British law), and in any Gulf country. We work with all free zones in the UAE and are partners with Dubai Silicon Oasis (DSO), an integrated technology park and free trade zone in Dubai. We are currently developing joint software: an online business registration system.
The fourth area is relocation services, from obtaining visas to finding housing.
The fifth area is auditing; both corporate financial statements for regulators of all types abroad (including European and British ones) as well as personal income audits.
Our company is the only partner and service provider for MasterCard in the Gulf region in the fields of accountancy and auditing. Our key competitive advantages are a high level of expertise in taxation, client-oriented service, and strict adherence to deadlines, something that, despite its importance, is still rare in the Middle Eastern service sector.
Which countries’ entrepreneurs most often opt for this jurisdiction?
India and the United Kingdom lead in terms of numbers, accounting for 30% of the market. They are followed by France, Germany, Pakistan, Russia, Egypt, Turkey, Italy, and Spain.
Which is more economically beneficial: relocating an existing company to Dubai or opening a new one?
Legally relocating a company; that is, re-registering it in another jurisdiction, is a very complex, expensive, and time-consuming process (taking six months or more). Typically, only companies with extensive international assets choose this option. Registering a new company is a much simpler, faster, and cheaper process, costing between $7,000 and $50,000. The cost depends on the company’s area of activity since, unlike in other countries (including the UK), businesses in the UAE must obtain a license for each specific area. The most expensive licenses are for businesses in healthcare, various funds, and holding companies. More affordable licenses are available for sectors such as information technology, services, and trade.
Could you walk us through the process of opening a company in the UAE step by step?
First, you need to determine the area of business and choose the appropriate jurisdiction for registering your company on that basis. To avoid mistakes, it’s advisable to consult with local experts beforehand, even at the jurisdiction selection stage. After that, you can begin the registration process. While it used to be necessary to have a local partner to open a company in the Gulf, nowadays, any foreigner can do so independently and remotely, obtaining a licence for any type of business activity. Next, you need to secure a work visa through your company, fly to the UAE with it and open bank accounts (both personal and corporate). Then you can start signing contracts with your partners, receiving payments with minimal taxes, paying yourself dividends, and spending them in the Emirates.
There are two ways to obtain a visa. The first and simplest way is through investment, by opening an investment account at a bank remotely and transferring an amount equivalent to at least $500,000 in dirhams. You then sign a two-year fixed deposit agreement with a 5% annual return (it’s also possible to be issued a credit card with a limit equal to the amount of the deposit) and receive a certificate from the bank making you eligible for a 10-year visa. After arriving in the Emirates, you can obtain visas for yourself and your family members (including children and parents), as well as for all household staff (nannies, drivers, and so on). The second option is to purchase property, such as an apartment worth at least $500,000. This offers the same visa benefits as investments.
The UAE has minimal tax burdens. Let’s compare the taxes the same company would pay in the UAE and the UK.
VAT is the main tax present in all countries. In the UAE, it is 5% and is only applied to domestic transactions, whereas in the UK, the rate is 20%. Corporate tax in the UK is 25%, while in Dubai, it is only 9%. The income tax on salaries in the UAE is zero, whereas in the UK, income tax alone is 45% (at least on salaries over £125,000 a year). Moreover, dividends and salaries received in other countries are not subject to taxation. Another significant advantage is that the UAE imposes no restrictions on entry and exit, nor is there a requirement to reside in the country for a mandatory number of days.
Who are your clients? How can people sign up for your services?
Our clients are heads of large and medium-sized businesses from various countries, many of whom plan to scale their operations throughout the Gulf region and conduct business globally. To become our client, you need to book a consultation on our website and ask any questions you have (the initial consultation is free of charge). Our specialists will review your inquiries and propose an optimal solution.
Tell us about some of the most interesting cases you've worked on.
Recently, a client who owned a restaurant approached us, asking us to take over their company’s accounting and conduct an audit, even though the business was managed by an external management company. We conducted the audit and discovered that the restaurant had accumulated around $1 million in tax debts and penalties, while the owner had been receiving inaccurate financial reports each month. We resolved the situation, restructured the company's accounting processes, and minimised the penalties. Now, we provide the investor with monthly financial reports based on objective data.
Another case involved helping a major mattress manufacturer launch their business in the UAE. For six months, the company had been unable to obtain a licence at the port due to difficulties securing rental premises. We quickly resolved this issue, gave assistance obtaining the licence, opened a retail store and bank accounts, and set up online cash registers and payment terminals. As a result, the company entered the market and began to sell wholesale within just one month.
You aim to join the ‘Big Four’ and make it the ‘Big Five’. What are you doing to achieve this goal?
After the ‘Big Four’ withdrew from the Russian market and stopped working with Russian companies, even those not subject to sanctions, businesses were forced to seek alternative providers of high-level accountancy and legal services. The companies that tried to replace the ‘Big Four’ were unable to establish a strong presence in the UAE or other international markets. Consequently, many specialists with ten to 15 years of experience at these accountancy firms found themselves out of work, despite possessing invaluable expertise and an understanding of world-class standards of service.
We identified these professionals, as well as companies that needed their services and facilitated new levels of collaboration. As a result, these same specialists have resumed their work with the same clients, only at a different company. These international companies with Russian roots will continue to grow and now they are our clients. They will not return to the ‘Big Four’ because they receive all the services they require from us.
We currently operate in five countries, and within the next two years, we plan to expand to ten. Based on our clients' needs, we are considering entering Far Eastern markets, such as China, Hong Kong, Thailand, and Indonesia, as well as Gulf neighbours Saudi Arabia and Qatar and the United Kingdom, where we aim to acquire a company. All of this allows all our team to look to the future with confidence as we continue to expand and accelerate our development.
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