Business setup in Dubai is supported by facts as friendly business environment, tax free treatment, cheap costs of trade, proximity with Asia and Africa and advanced and large scale infrastructures like ports, airports, roads, and soon rails. Dubai is a fertile ground for associations to develop their presence in UAE and the entire world.
When you want to start a business in UAE you should have a clear idea of how this company will be working and what is your main target. On the second step you should choose a legal type for your future company. Company registration in Dubai in any case give you a lot of benefits.
IN ALL CASES YOU WILL BE FREE FROM TAXES
This kind of companies are registered in the DED (Dubai Department of Economic Development) and it would fit perfectly for those who are planning to do local business. If you want to open a shop, restaurant, transport company, car rental or building maintenance company, Dubai Department of Economic Development is the authority where it must me registered.
In order to open a Mainland company you need to follow some requirement. You should have either a UAE citizen as local sponsor, who must have at least 51% shares in your license, or a local agent, who will not own any shares, but will be your door to the local market. Whether you need a sponsor and partner or an agent depends on the type of the business you want to start.
There are over 20 Free Trade Zones in Dubai and UAE. If you are planning to export goods to other countries around the world or manufacturing and selling your product globally and in the UAE you should choose a Free Zone. Free zones bring great opportunities for professional businesses like marketing and IT consultancies. Free Zones could be also a great possibility for creative and artistic freelancers like musicians, artists, filmmakers and others.
In Free Zones you do not need any local partner. You will be the owner of the 100% of your business. Limitations regarding Free Zones are the fact that you can’t officially lease an office in Dubai, your office has to be in the Free Zone itself and a import duty of 5% if you sell goods from Free Zone to local UAE market.
This kind of company would suit those who are doing global business and want to have an UAE registered company and a UAE bank account for optimizing taxes or because of safety reasons. You can bring off almost any activity apart from insurance, finance or banking related activities.
In this kind of business you could not have an office in UAE, but you will have a company registered address of your agent. You also do not have the right to apply for residency visa with this type of company.a
Starting a business in UAE, or any other foreign country, requires most of the times a thorough research and appealing to the services of a business setup consulting agency. The procure of business setup in Dubai and UAE resembles the procedures in most of the European countries provided that the investors have acquired all the information regarding the business activity they will undertake and know about all the business licensing requirements.
If your clients are not located within Dubai maybe you are not interested in the Dubai market but want to start a company to take advantage of the profitable tax regime, the privacy and the offshore banking. UAE is a tax-free country and this is a common advantage of all these company types, but all options have some more advantages and also some disadvantages.
- The requirements of mainland companies include the necessity to rent an office (without an approved office you could not get your license) and pay local partner’s fees.
- Free Zones have the obligation to prove your capital at the first stage of company formation, but there are some exceptions to this rule.
- Offshore companies don’t give you the right to apply for residency visa.
- Mainland companies are the best business setup for operating in the Dubai local market.
- Free Zones are a great option for international trading companies or for investor who do not want to have a local sponsor.
- Offshore companies are the perfect business setup for international trading and keeping safe your assets.
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