It is enough to cast a glance at Dubai to recognize that business and commerce are thriving there.
It is enough to cast a glance at Dubai to recognize that business and commerce are thriving there. No wonder that so many large businesses conduct company registration in Dubai. The UAE itself offers favorable tax regimes, stable currency, and highly developed infrastructure.
However, the location of your future company within the country makes all the difference. The UAE has seven emirates and many free trade zones in each of them. They all differ in regulations and policies; that’s why you have to study them carefully before making any final decision.
Emirates vs. Free Trade Zones
Here are some main features of starting a local company on the mainland:
- As a foreigner you can own only 49% percent of share capital;
- Another 51% belong to a local sponsor, who doesn’t take part in company operation and only receives annual remuneration;
- A company can carry out any types of activities and obtain different types of licenses (commercial, industrial and service);
- A business has no limitations on minimal authorized capital, etc.
The creation of a local company is mostly needed in cases of cooperation with the government, for example, participation in tenders. In other cases, it seems more beneficial to open a company in a free trade zone that has a specific favorable environment for foreign businesses.
There are about 20 free trade zones operating in Dubai, which are generally divided by operation activities. Requirements for company formation in Dubai are listed below:
- 100% of shares can be owned by a foreign company;
- opportunity to acquire a residency visa;
- a special tax certificate that exempts a company from paying taxes;
- no customs duties on import/export of goods, etc.
Find a Local Consultant!
As you can see, there is a lot of work ahead. That’s why you don’t have to do everything yourself – find a reliable local consultant instead. S.H. Business Adviser at https://uae-consult.com/en/our-services/uae-free-zone will consult you on everything you need to know about starting a company in Dubai and will help you find the best business solution.