Forming a Company in Dubai is easier and less time-consuming compared to other parts of the world. Dubai has a sound business environment, progressive laws, advanced infrastructure, business-friendly laws, and an astute strategic location that make it a popular go-to location for establishing a new business. The registration process is comparatively simple, and there are over 2,500 permitted business entities in the UAE. A business can be established on almost any type of ground and in any number of locations. A Company formation in Dubai is not very demanding. This is attributed to the huge growth of the trading sector in the emirate and the large pool of highly skilled personnel from around the globe.
A Company formation in Dubai allows holding of share capital and loans at the same time. This is a significant advantage in comparison to other countries like UK, US, Canada, etc., where it is virtually impossible to hold both sorts of financial activities at the same time. There are numerous reasons for which Companies are preferred by foreign investors and companies. First, there is a free movement of funds within the country, including domestic loans and capital transfers. Second, corporate laws in Dubai are pro-active in nature, so there is no need to wait for regulatory amendments and official proceedings, waiting for a court ruling on an issue.
Another major advantage of establishing a company registered in Dubai is the availability of offshore banking facilities by the law. There is no need to open a separate bank account in the name of a company, so there is a maximum chance of complete confidentiality. Since the banking laws of the emirate are rather simple and easy to understand, there is less risk of illegitimacy and irregularity in relation to foreign investment and ownership. In addition, there is a liberal policy for foreigners coming to work and settle in Dubai.
One of the main advantages of establishing a company in Dubai is that, its corporate laws are almost similar to those of New York, which guarantees the ease of doing business and minimum tax payment. Companies can benefit from several tax breaks as well, if the office is registered with Dubai Economic Development Commission (DEDC). Companies can save on income tax by paying direct employment taxes and local property taxes. These taxes are in addition to the standard corporate rate applicable in the company’s home country. A company can save on import duties by buying goods and services produced only within the country or by having its office in Dubai. On top of these, a company can enjoy several other tax benefits, such as exemption from inheritance tax and double taxation of interest and dividends paid by its shareholders.
A company formation in Dubai is not too difficult, especially if you have all the necessary papers and documents ready at your disposal. Companies can obtain registration from Dubai Corporate Registry (DCR), which is under the supervision of United Arab Emirates (UAE). This process takes only a few days to complete and submission of relevant documents is generally not required. There are several companies offering registration services to both domestic and foreign investors. If you contact one of them, they will assist you in getting set up as quickly as possible. You should check their reputation, track record and terms of services before proceeding with company registration in Dubai.
Companies can choose between limited and unlimited liability, as well as company registration in Dubai that are either domiciled or based in Dubai. You can find offshore and domestic corporations in Dubai that comply with all the laws of the United States, United Kingdom and other Western countries, depending on your own goals and objectives. In addition to the legal requirements, a company formation in Dubai also requires its shareholders to make a contribution to the capital of the company in the form of equity or an ownership interest. If you are an individual, you can choose to register your own company; however, if you are looking to establish a large international business structure, you will need to seek the assistance of a company registration in Dubai company that is domiciled in the UAE.
Many business owners have expressed the desire to open a business location in Dubai because of the low cost of doing so. The low tax rates, subsidies provided by the government and its ability to attract a large number of international and local businesses have made the city attractive to local and foreign investors. One of the major benefits of company registration in Dubai is the exemption of corporate income and corporate expenditure from local tax. A registration with the Dubai Permanent Residency and Company Registration allows free access to free trade and commercial activities, making the city very attractive to both expatriates and foreign investors.
In order to start a business in Dubai, you need a commercial license from the Dubai regime. The Dubai Commercial Infrastructure Development (DCID) is a scheme managed by the Dubai Department of Economic Empowerment. The scheme offers freehold purchase of real estate for the purpose of commercialization, which includes office, shops, restaurants, apartments and hotels. The companies registered in Dubai stock exchange are also entitled to enjoy several other benefits, such as exemption from inheritance tax and the 50% share in any project initiated by the listed company.