If you’re looking to start a business abroad, Dubai is the place to be. Located as a mid-size trading hub in the Middle East and North Africa region, Dubai has a wealth of benefits for Businesses, Companies, and Individuals.
Do you need Business Setup Consultants to setup a business in Dubai?
If you are worried about choosing the right company type, which will enable you to take advantage of substantial tax exemptions, hassle-free capital repatriation, and 100% ownership, then the answer is YES!
Considering that each Free Zone has its own regulations, benefiting from well-established experienced business setup consultants will not only guarantee you the right way but will also save you a huge amount of time.
Do you need a lawyer to setup your business in Dubai?
As the procedure is regulated by the law, consulting a lawyer may save you from many legal pitfalls. It’s up to you, though we recommend you consult a lawyer first in order to invest in the right way and maybe save you some money in the long run.
What do you need to setup a business in Dubai, UAE
Before starting the process of setting up your business in Dubai, there are a few things you will need to know. Let’s look at each and every one.
First, you need to choose the Economic Zone in which you want to operate.
What is an Economic Zone?
It is one that is separated from the general investment and business environment, and which has specifically favourable investment conditions, as well as a defined geographical boundary, and which is designated according to regulations of the government.
To establish your business in Dubai, you will need to decide whether to operate in a Free Zone, Offshore or Mainland. Each option has its own benefits and specifications depending on your business requirements and company goals.
1- Free Zones
If you want to own 100% of your company, consider applying for a Free Zone license and locating in one of Dubai’s Free Zones. Also known as Free Trade Zones – Free Zones are basically economic zones where goods and services can be traded at reduced taxes or customs fees.
Free Zones were originally instituted to boost international business in the region by providing benefits such as 100% foreign ownership. There are currently 45 free zones in the UAE.
In a Free Zone, you are, however, not allowed to conduct direct trade with the UAE market.
A Free Zone is generally built around an industry category and offers licenses to companies in that category. Here are a few examples:
- Dubai Multi Commodities Centre (DMCC)
- Dubai International Financial Centre (DIFC)
- Dubai Internet City (DIC)
Offshore Company is a cost-effective and tax-efficient structure that can be incorporated for the purposes of international trade. Offshore Companies are not allowed to conduct business inside the UAE.
As opposed to operating as a Free Zone business, a sponsor is required for an Offshore company, limiting your ownership in the Company’s share capital to only 49 percent. However, it may be noted that Offshore entities do not require depositing a minimum capital before incorporation. Another advantage is that the shareholders of an Offshore Company are not required to divulge their personal details as a part of any public records (i.e. Shareholder details are confidential)
An offshore company can also be registered in a Free Zone and enjoy many of the same benefits. However, it shouldn’t be mistaken for a FREE zone company.
Dubai mainland is the preferred destination for company formation for many investors. The reason behind the popularity of the Mainland Company is the freedom it offers to do business anywhere in Dubai and the UAE. A Mainland Company is licensed by the Department of Economic Development (DED) in the relevant Emirate of the UAE.
Some of the other major benefits in incorporating a Mainland Company are:
- Mainland company in Dubai enjoys 100% corporate tax exemption.
- You can operate your company from any part of UAE
- No capital required for a local Dubai Mainland License.
- Able to carry out business in Dubai Mainland
- No currency restrictions
- Easy processing of employee’s visas
- Incorporation process is simple and fast
Are you worried about choosing the right economic zone for your business? We have been assisting individuals and corporate entities to setup their companies in Dubai and in UAE for the last two (2) decades.
Contact us and we will be happy to assist you through the entire Business Setup process in Dubai.