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Starting business in Dubai, UAE

Article image: Starting business in Dubai, UAE

Dubai is the ideal place for opening a company. It is the world's largest business and financial center with favorable conditions for carrying on the business. Dubai is reputed to be the prestigious and stable jurisdiction, which is often used for business cooperation with the Persian Gulf States, and countries from almost all other regions of the world.

The important advantages of this Emirate are the absence of an offshore image with the combination of absence of income taxes. Only the banking institutions, hotel business institutions and the oil and gas industry are liable to taxes. Another advantage in favor of opening a company in Dubai (UAE) is the low customs duties, which constitute only 5% of the invoice price.

The level of confidentiality of business in the Emirate is very high. Company information is locked from public access. And some free economic zones record put only the e-mail address and telephone number of the company into the open registers.

Clarify the cost of opening company, corporate or personal bank account, obtaining a residence visa, or another question regarding business in Dubai, UAE:

The types of the companies which can be registered in Dubai, the UAE

Company in the FEZ

Company registration in the free economic zone provides the wide opportunities for business development, but does not give the right to conduct the activities on the domestic market of Dubai, the UAE. Such companies are mostly opened for trading, consulting, or production. The advantages of such a FEZ are the 100% ownership of the foreign entity, absence of the trade barriers, no bureaucratic runaround and the exemption from the taxes on the gained profits and on the company itself. The owners of the company, which is registered in the free zone, get a residence visa for themselves and the members of their families, and can also open the bank accounts in the UAE.

Local company

If the area of the activity of the business is the domestic market of Dubai, the UAE, then the resident company (LLC - Limited Liability Company) is to be registered. The examples of local companies are the restaurants, cafes, hotels, beauty salons, shopping and entertainment venues. In the most cases, it is not required to pay the authorized capital for the registration of the LLC. Besides, the employees and owners of the local companies get a residence visa for the period of 2 years. The indispensable condition for opening the LLC is the availability (usually purely formal) of the local shareholder or agent.

International company

In fact, it is an offshore company, which operates outside the United Arab Emirates. The customs and tax benefits are provided, and there are no restrictions on the number of the shareholders for the international companies in Dubai (the UAE). But the offshore registration does not give the right to obtain a residence visa.

The choice of the type of the company depends on the business objectives and rationality in the terms of the financial costs.

Feel free to write us or to call us and ask your questions on the right choice of the company type and its registration procedure.

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