Feasibility vs. Viability: Understanding the Real Potential of Your Idea
Too many entrepreneurs confuse feasibility with viability—and the difference can make or break a business. Feasibility asks: Can we do […]
Too many entrepreneurs confuse feasibility with viability—and the difference can make or break a business. Feasibility asks: Can we do […]
If you’re looking to raise capital in the UAE, your business plan needs to do more than just look good—it must tell a compelling, data-backed story.
It’s a well-known statistic: around 70% of startups fail within the first three years. In the UAE, where entrepreneurship is thriving, the number is no different. One of the biggest reasons? A lack of proper feasibility studies before launching.Â
The introduction of UAE corporate tax has significant implications for multinational enterprises (MNEs) operating through subsidiaries or holding companies in the region.
Since the UAE rolled out its corporate tax law, many businesses—especially SMEs and free zone entities—are under the false impression that they’re automatically exempt. These misconceptions can result in non-compliance, penalties, and strategic missteps.Â
Tax structuring is now a critical part of business strategy in the UAE. With the recent introduction of corporate tax, companies must rethink how they are legally and financially structured to minimize liability and maximize compliance.Â
The UAE’s corporate tax regime, introduced in 2023, represents a pivotal shift in the nation’s economic landscape. Designed to align with global tax standards and reduce dependency on oil revenues, this new tax framework mandates a 9% tax on annual business profits exceeding AED 375,000.Â
While VAT registration is mandatory in the UAE once a business exceeds AED 375,000 in taxable supplies, companies with revenue between AED 187,500 and AED 375,000 can opt for voluntary registration—and in many cases, this is a smart move.Â
Doing business across GCC borders can be profitable—but it complicates VAT compliance. With the UAE and other Gulf countries implementing VAT, inter-Gulf transactions require careful management to stay compliant.Â
VAT audits are becoming more common as the Federal Tax Authority (FTA) increases its oversight in the UAE. Many businesses are caught off guard by VAT audits, which can lead to assessments, fines, and stress. Preparation is not optional—it’s essential.Â