Doing Business in Dubai?
Dubai Business Formation and Setup Made Easy
For starters, Dubai is one of the few places on Earth where starting a business is a tedious task. According to the World Bank’s Survey, Dubai is ranked 33rd of the easiest places to do business considering its low rankings,
we can safely say that starting a business in the city is going to be very hard, especially if it’s your first time.
Foreign investors starting any type of business in Dubai must pay attention to the requirements of the Company Law which provides
for all the steps one must complete in order to have a company up and running.
This is mostly attributed to the government bureaucracy that places stringent measures to qualify for a business standing in the city. If you’re aiming to put one up in the city then here are some legal facts and terms
you need to acquaint yourself with before you get started.
- There is not a capital gains tax in the UAE.
- English is widely spoken in the UAE, making investment opportunities easier for many foreign investors.
- Owners who have incorporated in the UAE only need to pay income tax if they are in the foreign banking or oil and gas industry. Otherwise, corporations are exempt from taxation in the UAE.
- The paid-in minimum capital requirement for owners choosing to incorporate in the - UAE is AED 0. So, there is not a capitalization requirement.
- There is no value-added tax or sales tax in the UAE.
- The UAE houses a diverse, growing economy that continues to expand and offer new business opportunities for corporations.
There are 2 categories of business you can set up in Dubai Free Zones, namely:
1. Free Zone Company
-a business that is 100% owned by the person who set it up. You don’t require a sponsor or an agent to act as liaison to manage the venture. There is no restriction tying you down.
Dubai Free Zones Benefits
• 100% Ownership
• Can be formed by only one individual
• You can open a bank account in Dubai
• 100% Secrecy maintained
• 0% Tax
• Less Renewal Charges
�� Can be liquidated anytime
• You can do international business
• Can do multiple activities
• Can hold Properties
2. Offshore Company
– this type of Dubai company registration refers to a business operating outside its boundaries. Example, a business in Switzerland opens up a similar enterprise in UAE.
Dubai Offshore Company Benefits
The offshore possibility has basically been set up to cater for companies who need to have a regional "tax relief-invoicing-facility" - There is no minimum capital required and also no need to set up an actual office
facility. The off-shore regulations have been issued according to new international standards and companies will have to register minimum one director per company, keep financial records and issue an annual financial
report audited by a professional auditing company approved by
the free zone. Each company must hold annual general meetings (possible also by proxy) and in short perform and act as a normal company.
The company regulations have been made out in strict conformity with new anti-money laundering measurements.
Local companies allowed to deal with
(a) Legal consultants,accountants, management companies etc carrying on business within the UAE.
(b) Any bank in the UAE for the purpose of conducting its routine operational transactions.
(c) If an offshore company wishes to conduct trade or other business in the zone or elsewhere in the UAE, it must obtain the appropriate licence to conduct the trade or other business activity from the competent authorities.
Capital: No minimum required, however a minimum of AED 10,000 (US$2,700) is recommended to begin with.
Being one of the top Capital cities to do business in, Dubai’s success continue to inspire people, making it one of the most preferred destinations for global expats which now stand at more than two million. It is the choice
for local and international organizations because of its strategic location, world class infrastructures, diversified and easily accessible market offering low logistics and operational cost.
Our business advisors have been setting up new businesses in Dubai for years and know all the ins and outs. They will be happy to give you the advice that you need and will most likely already have experience
in setting up your business type. It pays to rely on professionals who will give you the proper sound advice that you can trust. Your companies legal framework is something that is important to get right.
Advice and consultancy — what corporate structure best suits your current and future plans
Draft documents, assemble files and manage submissions, translations, notorisations and legalisations
Visa and work permit processing with Emirates ID
Partnership options for Professional, Branch Office and Dubai Offshore Company.
Seek approvals from Free Zone Department, Ministries, Department of Planning and Civil Defence.
Set up Company Bank Accounts.