Setting up a company for yacht brokers and entrepreneurs in the yachting industry in the United Arab Emirates: a strategic and tax-efficient choice

The yachting sector is experiencing significant growth, and the United Arab Emirates (UAE) has become a central hub for businesses and investors worldwide. Dubai and Abu Dhabi, in particular, are prime destinations for yacht brokers, attracting a discerning international clientele, investors, and maritime industry professionals. Monaco has long been a favored location for yacht brokers and maritime investors, offering a favorable tax environment and an ideal geographic position on the French Riviera. However, since the introduction of new anti-money laundering (AML) legislation in 2021, the rules have become stricter and more complicated for businesses in the yachting sector. The implementation of these new regulations has significantly increased administrative burdens, making the creation and management of maritime companies more complex and costly. As a result, many brokers and investors are now turning to Dubai, where the legal framework remains far more favorable. Dubai offers a beneficial tax regime, simplified procedures, and a more flexible business environment, making it a more attractive option for those looking to operate in the yachting industry without the additional constraints imposed by Monaco.

However, to operate in this field, yacht brokers must understand the importance of the legal and fiscal structure of their company. This is where the services of Meyran Partners become essential.

1. Why Create a Yachting Company in the United Arab Emirates?

The United Arab Emirates offer several key advantages for yacht brokers looking to establish their business:

• A Favorable tax environment: The UAE offers a highly attractive tax regime, with tax exemptions on corporate income in free zones (Freezones) and the absence of personal income tax. This allows yacht brokers to maximize their profits without the heavy tax burdens they might face in other jurisdictions.

• Access to an international market: Dubai, in particular, is an international hub for trade and finance. Numerous clients and business partners from around the world pass through the city, offering unique opportunities for yacht brokers. Companies can be established for operations within the UAE, international physical activity, or advisory services.

• Modern and advanced infrastructure: The UAE is equipped with world-class marinas, providing first-rate facilities for yachts and vessels. As a yacht broker, establishing a company here allows access to exceptional maritime infrastructure to better serve your clients.

• Legal protection and transaction security: The UAE also offers a stable and reliable legal environment for maritime business. The UAE’s legal framework protects investors and ensures compliance with transactions, which is critical in the yachting industry, where legal security of contracts is essential. Activities can be structured through traditional companies, offshore entities, or specially designed vehicles (e.g., SPVs).

2. Services offered by Meyran Partners

Meyran Partners is a key player for yacht brokers looking to establish or optimize their company in the UAE. We offer a comprehensive range of services tailored to the specific needs of the yachting industry:

• Company formation
• Legal and tax advisory: Our team of French tax lawyers provides advice on the most advantageous legal and tax structures for yacht brokers, ensuring compliance with local and international regulations.
• Compliance services: Meyran Partners helps you stay compliant with local requirements, including operating licenses, environmental standards, and maritime safety regulations.
• Contract and transaction management: Our lawyers, registered with the Paris Bar, assist clients with drafting, negotiating, and managing complex contracts, particularly those related to the sale and leasing of yachts, ensuring legal security and protection for all parties involved.
• Estate planning and asset structuring: Yacht brokers and their clients can benefit from advice on asset management and estate planning to maximize the protection of assets while optimizing tax efficiency.

Conclusion

The yachting sector in the United Arab Emirates presents a strategic opportunity for brokers looking to engage in a dynamic and rapidly growing industry. By establishing a company with the help of Meyran Partners, you not only benefit from an optimal legal and tax structure but also gain local and international expertise to maximize your chances of success.