Dubai is a business hub and global city of the United Arab Emirates. I locate this city in the northeast part of the country. Trade, tourism, real estate, car rental, and financial industries contribute to a major part of GDP making it one of the rapidly growing economies in the whole World. Premium business locations in Dubai motivate investors in investing in the business. It offers various investors the tax exemptions, the most free-operating conditions, complete privacy, limited liability, asset protection, etc. Overseas companies have also benefitted from tax exemptions in Dubai as it has:
- Only one of its kind policies of liberalization
- Excellent growth trajectory
- No quotas, exchange controls, and trade barriers
- High accessibility through water and air
Company Formation Types in Dubai
Free zones
The free zone authority of Dubai is a government organization that handles formalities related to registration and issues licenses for foreign-owned businesses or non-resident companies to form a company in the city’s free zones. The benefits of setting up of business in the free zone are:
- Investor’s ownership is 100%
- Operations are conducted secretly
- Tax exemption is 100% on corporate as well as personal income or gains
- Fewer renewal charges
- No export or import duties
- Anytime liquidating option
- Corporate tax exemption is for 15 years which can be renewed for another amount of 15 years
- Opening a bank account
- Assistance in staff visas and housing facilities
Free zones list includes Dubai Academic City, Dubai Design District, Dubai Healthcare City, Dubai Airport Free Zone Authority (DAFZA), Dubai Industrial City, Dubai Internet City, Dubai Knowledge Village, Dubai Logistics City, Dubai Studio City, and Dubai Outsource Zone, and several others.
Mainland Company
A business falling under geographical areas which are commercialized and directly registered with the Emirates government is classified as a Mainland Company. The highest foreign shareholder equity allowed is 49%. 7 categories of organizations or businesses that are allowed to establish in Dubai are:
- Sole Proprietor Company
- Joint Venture Company
- General Partnership Company
- Public Shareholding Company
- Partnership-en-Commendam
- Private Shareholding Company
- Limited Liability Company
Limited Liability Company is mainly chosen by foreign investors out of the above-mentioned categories.
Offshore Company
The business is incorporated outside of the country where foreign investors live in. The benefits of setting up an offshore company are:
- Asset Protection
- Protection of investments
- Profit maximization
- Tax minimization
- Ease of doing business operations
- Exemption of local taxes (Professional, Personal, Corporate)
- Complete anonymity
- Complete confidentiality
- Complete privacy in operations
Business Setup services offered by different consultants
- Company incorporation
- Company registration
- Tax consulting
- Public relations officer
- local sponsorship
- Auditing
- Intellectual property protection
- Accounting and bookkeeping
Business License types available in Dubai
- Commercial License – Helps in various types of trading activity offshore
- Professional License – Meant for craftsmen, artisans, and other service providers
- Industrial License – To set up an industrial or manufacturing activity
Procedures for setting up of business in Dubai
- You have to submit 3 purposed names for your company and the Department of Economic Development selects from the 3 purposes.
- You need to get a Memorandum of Association from Depart of Economic Development.
- A trade license needs to be obtained from the chamber of commerce and industry after filing the documents with the Department of Economic Development.
- You need to get an Establishment card from the Ministry of Labour.
- Native workers are needed to be registered with the General Authority and Ministry of Labour.
Business setup services in Dubai help in the incorporation of business in Dubai. They should help you from thinking of starting a business to when it’s fully incorporated. They are needed to be channel partners of offshore jurisdictions, free zones as well as government and bank authorities. Referral business and client loyalty should be their main motto. Dedicated support, quality services, and competitive pricing are the differences between different agencies. A certain fee is charged for any activity required and the work regarding that activity has to move at a rapid pace. You need an honest and reliable company so that your business is set up hassle-free.
Further reading: Choosing Outsurcing Location
