6 Reasons Why You Should Establish Your Business in Dubai
In this article I look at the top 6 reasons why you should consider establishing your company in Dubai. Some of them you may have heard before and some of them you may not have considered.
1. Tax Benefits
There is no personal income tax in Dubai.
It used to be a tax free country for companies incorporated in Dubai but that changed at the beginning of 2023 when the government passed new legislation that imposes a 9 % corporate tax on profits over AED 375,000 (about $US 100,000)
Most foreigners, however, set up their companies in one the “free zones". Companies incorporated in a free zone can still maintain a 0 % tax rate on meeting certain conditions. Exemptions for taxes on corporate profits can be granted for up to 50 years.
2. You can have 100% foreign ownership
Under the amended Commercial Companies Law you can incorporate a company in the United Arab Emirates with 100% foreign ownership. Previously, foreigners opening a company in the UAE needed 51% of the shareholders to be Emirati.
3. You can get a residence permit
Forming a company in one of the free zones allows you to apply for a residence permit for you and your spouse and children, as well as a business partner and three executives.
You don’t have to live there but you do have check in with the Immigration Department at least once every 183 days or your visa will automatically be cancelled. So, basically you have to be there two days a year.
You also have to maintain a physical office there even if it is only a hot desk at a co-working space.
4. It’s easy to open a bank account
The UAE as one of the leading world financial centres has a robust banking sector made up of local and international banks. There are a wide range of accounts you can open including private wealth, business accounts, current accounts, savings accounts and investment accounts.
To open a bank account you will need to show your passport, your residence visa, and proof of you address such as an office lease or utility bill.
5. It’s easy to bring in workers from other countries
Visa regulation in Dubai is very expat friendly. Once you’ve set up your company in Dubai it is easy to get a visa for your employees who may be from other countries. You don’t have to use the local workforce. This could result in substantial cost savings for you if you can bring in workers from countries whose salary expectations may be lower than the locals.
6. Credibility
Dubai is one of the leading commercial centres in the world. It also has a reputation for international arbitration in commercial disputes. The Dubai International Arbitration Centre has an excellent reputation for providing commercial dispute resolution services to parties from all nationalities and jurisdictions.
This will give your company credibility in its business and financial dealings. Much more credibility than if you were operating your company form one of the traditional “tax haven” jurisdictions in the Caribbean. Many international banks will not deal with banks from those countries, making it difficult to carry out normal business transactions. And from an international business point of view, your clients are going to be much more open to doing business with a company that has its headquarters in Dubai, as opposed to say Tortola in the British Virgin Islands.