The UAE government plays a proactive role in bringing foreign investment to the Emirates from all around the world as is evident by its multicultural society. A visionary government and ease of doing business policies in UAE are the major reasons behind the active and prospective economic progress of the UAE. The tax-related and other financial benefits that the government provides to foreign investors are manifold. The UAE market is classified into 3 business jurisdictions i.e., Mainland, Free Zone and Offshore.
In little over two decades, from being a dusty town with a local trading community, today Dubai is the most successful, most multicultural, and attractive business destination for any company that wants to capture the international market as it combines elements of both East and West opening the door for businesses to target more than 2 billion people.
Therefore, registering a business in Dubai has several advantages:
100% ownership for foreign expats:
- The UAE cabinet has implemented the concept of 100% foreign expat ownership it means now there is no requirement of having a local sponsor to establish a business/ Company in UAE and can apply for a business license without the requirement of UAE nationals.
Government Support in ease of doing business:
- Ranked 11 amongst 190 Countries in ease of doing business.
- Minimum capital requirement for setting up of LLC has already been removed which has attracted more foreign investment.
- Dubai mainland company allows businesses to work anywhere in UAE without setting up any local registered branches i.e., higher market presence with low cost.
- Increase the scope of business as Local Market Company (LLC) are eligible to work with the Government Bodies, unlike Free Zone Companies.
- No public disclosure of Company shareholders and directors in UAE and foreign expat can enjoy full confidentiality.
- A Dubai Company faces no Company Tax, Personal Tax, withholding tax, import/export taxes and capital gains tax, payroll tax. The owner can legally enhance their profits through establishing a company in Dubai.
- Resident businesses also benefit from the City’s more than 50 international double taxation treaties which help reduce the withholding tax on foreign remittances.
- There is no limitation of Visas for the mainland license as an e-quota is issued to every Company in the mainland by Ministry of Labour which shows their visa eligibility, and it can be increased if the Company requires more staff.
Freezing of License:
- Department of Economic Development, Dubai has given an opportunity to any Company which is undergoing any restructuring of financial liabilities or wants to avoid liquidation or prevent losses, then it can freeze its license. By doing this you can retain your trade name and Business License keeping it inactive for as long as 3 (three) years with no further renewal fees during that period.
The Free Zone:
- In Dubai there are more than 20 Free Zones, and they accommodate several industrial and business clusters. Investors can have complete ownership and can repatriate the profit and capital.
Bank Account Services:
- The Bank account opening is much more comfortable for the mainland Company as compared to the Free Zone Company. In case of Free Zone Company, the bank account opening is always a time taking and tedious process.
- Dubai is undisputed financial capital of the MEA region. The City’s financial center (DIFC) is already used by several banking and non-banking financial institutions, insurance Companies and asset management firms.
- The owner of the business can get easy access to the local currency as there is no exchange controls in the Country.
Secure and stable Political and Social Climate:
- The UAE has a politically stable environment since 1971 which in turn has led to viable climate for economic growth.
- Dubai is also known as the most tolerant, prosperous, secure, and safe societies in the world and ranked top Middle Eastern city in quality of living index.
Expo 2020 is a global exhibition that tends to bring the world-wide community together to a common ground. It usually harbors the participation of about 190 countries and companies coming together to mutually share ideas pertaining to innovations, to converse around the key challenges in the world, and how to tackle them as well as to have fun.
Expo 2020 direct benefits to Dubai
- Increased Employment
- Small and Medium Enterprises Business Support
- Increased Hospitality
- Energy boost
- Improved Transportation system
- Infrastructural Development
- Improved Economy
- Legacy of District 2020
Starting and operating a business in Dubai is lucrative, but it has its own government systems and legal methods. A newcomer might find it a bit difficult in dealing with the legal framework to get his company set up. It would be advisable to approach a Dubai-based company formation agency to help you chalk out your first step towards growth and profitability i.e., Company Set up.
In case you require any further information or clarification, feel free to contact us at below given details:
ANUVI BUSINESS SOLUTIONS
+971 50 409 2494