Dubai is deservingly considered as a gateway to the whole of the Middle East and other GCC countries. Foreign investors, for years, have been exploring the opportunities of business setup in Dubai to tap into the lucrative Middle East markets. Investors usually consider a string of factors while planning to set up a business in a foreign country, such as ease of doing business, modern infrastructure, no corporate income taxes, safe place to live and work, support from the government, high standards of living, less bureaucratic hurdles etc. If these factors are your top priority as an investor, then Dubai is the perfect fit for you.
Setting up a business in Dubai as a foreigner comes with a wide range of benefits that many other highly-hyped destinations can’t promise you. Here we give you a glimpse on why initiating company formation in Dubai is a perfect fit for foreign investors.
Flexibility to Choose Business Structures
The process of company formation in Dubai is relatively easy and flexible as you get plenty of options to choose from. Each of these options has its benefits that facilitate the ease of doing business in Dubai. For instance, you can start a business in Dubai free zones, mainland or incorporate an offshore company to diversify investments.
In terms of total ownership, import/export incentives & easy setup process, the free zone company formation in Dubai provides a competitive advantage for the entrepreneurs. Setting up an offshore company is a great option to own freehold properties in Dubai, and it is the most cost-effective option for investors. Meanwhile, the investors can do any business anywhere in the UAE by setting up a company in Dubai mainland. In the mainland, you can set up a variety of legal structures including Limited Liability Company ( LLC), Sole Proprietorship, Civil Company, Branch etc.
Getting a Business Visa is Easy
Foreign investors can get long-term visas in Dubai by meeting the mandatory requirements. There are 5-year and 10-year visas that you can easily avail with the assistance of business setup consultants in Dubai. For the five-year visa, you need to prove your experience as an entrepreneur apart from being a shareholder in a startup or a member of its senior leadership. Also, you need to have a business idea for opening a company in the UAE.
The ten-year visa is termed the Golden Visa for which you may need to deposit at least AED 10 million in public investment. Setting up a company with at least AED10 million in capital or making an AED10 million investment in an existing company are alternative options for availing of the ten-year visa in Dubai. The introduction of the five-year retirement visa that allows individuals above the age of 55 the eligibility to work and live in Dubai has also uplifted the emirate’s business appeal.
Business Benefits from New FDI Law
The UAE government has announced a handful of progressive reforms in 2020 that reaffirmed the country’s potential for attracting foreign direct investments (FDI). Unlike in the past, 100% foreign ownership is now possible in companies incorporated in Dubai mainland. Earlier, the expatriate owners were only allowed 49% shareholding in their companies. It was mandatory for the investors to grant the rest of 51% shares to a UAE nationals sponsor for registering an LLC in Dubai. The ratification of the FDI Law has allowed total foreign ownership in specific sectors such as Manufacturing, Agriculture and Services sector. Company formation consultants in Dubai can advise you about the conditions for setting up an FDI company.
Liberal Taxation Regime
If you are incorporating a business in Dubai, you need not worry about paying income tax or corporate tax. This is in stark contrast with other major business-friendly jurisdictions where you would need to allocate a major chunk of earnings into personal and corporate tax. Recently, UAE’s neighbour Oman also announced it would introduce income tax in the country. However, the UAE stood its ground and rejected any possibility of taxing the residents and citizens.
The only form of taxation that the foreign investors need to be concerned about is the Value Added Tax (VAT). However, VAT is levied at a meagre 5% which doesn’t burden the businessmen. Also, the foreign investors are safe from being taxed in two countries at the same time as the UAE government has signed Double Taxation Avoidance (DTA) treaties with around 115 countries. To know if your country is covered under the DTA, talk to the best company set up consultants in Dubai.
A Helping Hand for Foreign Businessmen in Dubai
As an established business hub for foreign investment, Dubai has never felt like a foreign land for investors. With its robust infrastructure and myriad business opportunities, Dubai has rewarded foreign investors with an efficient ecosystem to thrive. The only thing that the expatriates need to give due care while initiating the process of business set up in Dubai is the licensing requirements, labour laws and immigration laws. Let the business setup consultants in Dubai, such as Jitendra Business Consultants (JBC) handle that responsibility for you.
We have a team of highly qualified company formation specialist who will simplify the business setup process for you. JBC is dedicated to helping foreign investors achieve their aspirations in a global business hub like Dubai. The clients benefit from our bespoke services such as company formation (mainland, free zone & offshore), corporate bank account opening, obtaining visas etc. If you are an investor with an ambition to grow your business in Dubai, we provide you with the assistance of our efficient team to achieve your goals quickly without any hassle.