The potential for economic growth in Dubai is well-known by the many companies that already have their headquarters here. Do you want to follow them? What can a business in this destination bring to you? The Dubai International Financial Centre (DIFC) has ranked among the 10 largest financial centres in the world. It was ranked 10th in the International Financial Centres (IFC) by The Banking magazine, in addition to financial centres in London, New York, Hong Kong and Singapore.
Dubai and business
In the spirit of a familiar saying, all spiritual thinking people forgive us, the money goes in the first place. Which is 100 percent true regarding this location. Dubai offers its people amazing opportunities to become rich and wealthy. This is primarily because there is no income tax on individuals. So you can save a lot of money!
Dubai and Free Business Zones
Dubai has a number of developing business areas. These are also known as free business zones. The bottom line is that they allow companies to settle in the city while maintaining their so-called "Offshore status".
The fundamental advantage of such a business
- Free zones are primarily exempt from tax.
- Licences are usually issued within two to six weeks, depending on the particular zone.
- The condition that all company activity must also be carried out within that zone is somewhat limiting to a certain extent.
- Importantly, many duty-free zones only allow companies to trade outside of Dubai.
- Some free zones have special settings for certain types of businesses.
Offshore Companies in Dubai
Dubai Offshore Company (Offshore Dubai LLC) is a limited liability company set up in a free zone (see above). LLC can trade under normal conditions and can be wholly owned by citizens of a foreign state. However, as there are no requirements for LLC's physical presence, you can also work through a virtual office
And now the important information:
- Since data about directors and company shareholders is publicly available in Dubai, we recommend that you use a nominee service to maintain anonymity.
- Annual audited financial statements are required to be submitted to local authorities.
- Any such company established in a free zone must restrict its business activities only to the territory of the respective zone. It isn’t allowed to trade in the United Arab Emirates market. And it can’t have customers in other parts of Dubai except the free zone. This is a significant constraint, especially if your company intends to enter the United Emirates internal market.
- Other disadvantages include the fact that you can’t run any type of company purely on your own decision. Each free zone is designed for a specific type of business. Examples of these zones include the following: Those reserved for import and export and free zones for technology companies and related fields. For this reason, your business activities are tied to the type of free zone where you’ve set up your office.
- Dubai certainly doesn’t need a long introduction. The United Arab Emirates hide a surprise for everyone. It's a magical fairy tale for people all over the world. Imagine a place where the police fleet includes world-renowned brands such as Lamborghini, Ferrari and Bentley. The place where ATMs issue gold bullion. The place where robots take part in multi-million camel races. Welcome to Dubai, the golden city.
Long ago it was an oasis in the desert, now it’s a vital artery of the world economy. Are you ready for that?
Business in Dubai:
Legal entity type: Limited Liability Company (LLC) Dubai Free Zone.
Founding time: 10 business days.
Number of partners: Minimum 1, maximum isn’t specified.
Partners: They may be individual or legal persons.
Registered capital: Minimum share capital is 50,000 AED, maximum isn’t defined.
Bearer shares: Not allowed.
Need to: Have a seat in the Dubai Free Zone.
Local agent: Not required.
Executives: Minimum 1, max. 7, only individuals.
Residence of executives: Executives don’t have to have a residence in Dubai.
Taxation in Dubai:
Income tax: Is 0% in free zones.
VAT: Also remains at 0% in free zones.
* The UAE government has introduced 5% VAT - corporation tax on Inland Revenue and sales.
The United Emirates has more than 60 double taxation agreements with different countries.
Accounting: Accounting and preparation of the annual closing is necessary, a tax return should be submitted.
Audit: Should be performed, directors should appoint auditor(s).
Anonymity and privacy: Information on directors and partners can be accessed in the Commercial Register.