Wednesday, February 24, 2021

Business Setup in Dubai - What You Need to Start a Business in the UAE

Dubai has quickly become the hottest business destination in the region, due to its favorable business setup and favorable climate. This emirate has also emerged as one of the leading centers of offshore business, attracting small to medium-sized businesses from across the globe. The city features some of the best business setups in the world, offering a plethora of opportunities to businesses of all sizes. Businessmen can easily establish their companies in Dubai with the help of professional management services provided by experienced professionals. The following are some of the notable benefits that are gained by starting a business in Dubai:

Business Setup in Dubai

No Taxes: Dubai has earned the unflagging reputation for its low taxation levels, with special incentives and privileges being offered to companies that contribute towards the welfare of the national economy. Companies are required to pay only a small amount of tax on their turnover. In addition, one need not worry about paying any kind of income tax or value-added tax on business expenses. Dubai also boasts of some of the most generous free zones, which provide a lot of scope to businessmen.

Foreign Ownership: During the past few years, the number of foreign investors has increased substantially in the city. Most of these investors come from developed countries, but a growing number of people from developing countries are investing in Dubai, as it has become one of the safest investment destinations in the world. With the availability of various types of Business setup in Dubai freezone, one can easily pursue their business activities without worrying about foreign ownership issues.

Tax Breaks: One of the major reasons why Dubai has become so popular for corporate ventures is its very attractive tax regime. Its tax exemption schemes are among the best in the world. This means that investors from foreign countries will be able to enjoy substantial tax breaks when they purchase property in Dubai. The two major sections under tax exemption are commercial and residential properties. In addition, there are other special rules and regulations for property investors. These rules aim at reducing the costs and risks associated with investing in Dubai properties.

Easy Access to Transport Facilities: Since the city of Dubai offers several transport options, from the road to air and rail to sea, it makes life so much easier for an individual planning to start a business in Dubai. The metro system, for example, connects all parts of the city of Dubai, and travel in Dubai is very easy by car, taxi, or bus. A visit to the airport can also be made quite easily by hiring a car. In addition, all accommodation facilities are easily accessible from the airport. Hence, an investor in a business set up in mainland Dubai will find it very convenient to set up a business here.

No Personal Property Tax: It has been customary in the country of UAE for locals to be exempt from paying personal property taxes. However, the government of emirates has made it mandatory for every individual who wishes to incorporate in the country of Dubai to pay the appropriate personal property tax. This tax, however, is inclusive of income tax and is, therefore, a huge relief for a businessman planning to establish a business in Dubai, or for anyone else for that matter. This tax break was imposed as a measure to encourage investment in Dubai and to encourage the establishment of businesses in the emirates.

No restriction on business size or number: Unlike what is followed in many countries, there is no requirement for an individual to open a super-business in Dubai. An entrepreneur can choose to incorporate either as an individual or a company, and he/she need not have share capital in order to do so. On the other hand, an individual or a company can own a property in Dubai and use it for his/her personal use. However, this could only be done after attaining legal possession of the property.

Passport and Birth Certificates: Both resident and non-resident (that is, UAE-Arabs) need to produce original documents at the time of application for the aforementioned benefits. These include passport copies for the applicant and those accompanying family members, as well as originals of birth certificates for the concerned citizens. A copy of both these documents is required to be produced along with the necessary fees upon receipt of the acceptance of the application. These documents are required to enable an individual to start a business in Dubai; otherwise, the entrepreneur may not receive his/her investment. The business capital in most cases is based on the credit rating of the individual in question, so it is imperative that these documents are submitted together with the application.

2 comments:

  1. Dubai is one of the leading financial hub spots across the globe. This is what makes it an interesting place for corporate banking. And not just the corporate one but it also paves way for personal bank accounts. Irrespective of whether you are a certified resident of the country or a non-resident, you can avail of the best accounting services in Dubai.
    offshore bank account uae

    ReplyDelete

Free Zones, Business Opportunities and Immigration

Yes, a non-UAE citizen can actually start a business in Dubai too, which many do. The average population of the emirate is over 80%. Dubai i...