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The Delhi-based disputes boutique AKS Partners has planned to expand its footprint with a new office in Dubai. Similarly, AKS Partners will be the fifth Indian Law Firm which will be opening its office in the Finance and Industrial Hub of the Middle East this year. ultimately it is because of the emerging position of Dubai as an International Arbitration Hub and its Technology-forward policies that have prompted the firm to open its offices in the United Arab Emirates.
The firm’s expertise in areas pertaining to arbitration and dispute resolution has been in high demand in Dubai, as it is moving towards becoming the leading center for International Dispute Resolution. Also, very recently the firm has represented around two major conglomerates in the LCIA Proceedings in London. In such a way the firm has been growing its abilities to meet its demands of serving across various sectors.
How Dubai’s Tax-Friendly Environment is helping to expand the pace and scope of the Legal Industry?
Dubai’s Tax-friendly corporate policies, especially Technology-based coupled with the liberalization of its foreign investment regime have attracted them to a great extent to initiate their operations in this country. Generally, this trend has also greatly influenced all the major Law Firms to work in such a manner.
This tax-exempting feature has been possible only when all the companies and the firms have been able to go through changes in two steps, which can be understood as;
Firstly, all Business enterprises and Law firms need to be able to meet the criteria of maintaining adequate substance in the UAE, by having sufficient operational employees and directors who could be able to work on the ground.
Secondly, for all foreign law firm businesses with directors traveling to the UAE in a limited time with foreseeing challenges in meeting this criterion. In the last 20 years, the UAE has mobilized about 3 times more FDI projects than any other cities across any of the Middle Eastern Countries, which has attracted about 31% of the SEZs.
But the corporate tax regime changes that are undergoing in the UAE have also been a matter of confusion for the companies which has a 50-year guarantee to ensure a tax-free environment. In that case, when the law firms are exempted from their profits, all the major business organizations will be obliged to get a tax registration number with their accounts being audited to file regular tax returns.
Also, those firms earning under a fully-taxed system and exempted income will be preparing for compliance with allocating costs between the two tax rates. Also, those working as a part of the corporate groups are also weighing the impact of the foregoing group-wide tax benefits.
At the same time, UAE offers tax exemptions, which benefits all organizations in a way like;
Attracting Investments- Being a substantially diversified country of the world, UAE offers a wide investment opportunity which makes it a commercial hub of investment for all international investors. In the financial structure, the matters pertaining to innovation, and infrastructure of a globalized world are some of the criteria which also attracts investors in large numbers.
Increasing the number of foreign collaborations- It is a significant feature that makes it vital to emphasize the global credential and appeal on a worldwide platform, as taxation on international trade gets reduced through the help of collaborations. This makes the formation of a company in the UAE even more alluring and the demand for Business set-ups to develop a tax-free environment which makes the path easy for exchanging controls, and trade quotas, to offer limited economic barriers.
Offering a suitable position to deal with market trends- All Tax-Free registered companies in the UAE provide a suitable position for the markets and industrial businesses. However, the liberal policies being enforced by the government allows business firms to create a distinct place for themselves in the entire market.
Other law firms that have opened their offices in Dubai this year
Amongst some of the law firms that have opened their offices in Dubai this year are, Singularity Legal, Goswami & Nigam, Vidhisastras Advocates and Solicitors, and Parin Legal. Presently referring to the data released by India’s Ministry of Commerce, it can be clearly found that UAE is currently the seventh-largest investor for India, and is also the second-largest export destination of India. As Bilateral trade between the two countries was at $84.5 billion in the year from April 2022 to March 2023.
Sources Referred
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