Dubai is the go-to business hub in the UEA not just because of its strategic location at the center of Asia and Europe, but also because it has a very forward-thinking set of rules and regulations for business investors. With a multicultural society, thriving tourism, and state-of-the-art infrastructure, Dubai shows strong signs of continued economic growth and global business success.
Some of the notable financial incentives being offered to investors who would like to explore Dubai company formation are:
- 100% exemption from corporate taxes
- No income tax and inheritance tax
- 100% exemption on wealth tax
- And no value added tax and no sales tax
How Do You Start Your Company Formation in Dubai?
So knowing that Dubai has a the right laws and services setup already for potential investors, how does one start his business expansion in the city? One of the basic questions you should answer is whether you want an office in Dubai or just a virtual office? You can basically choose from Free Trade Zone Onshore or Offshore company.
If your business wants to operate within Dubai and focus on getting customers living in Dubai, then you should choose to apply for an onshore office setup. An onshore office allows your company to have a physical office and be located anywhere within Dubai and the UAE and fully operate your business in the region.
You can open shop at locations in Dubai such as malls, buildings, and other establishments. An onshore company also requires less initial capital to setup since you are required to look for a local partner who can contribute to the initial funds for the company. So this means you cannot have full ownership of the business but rather need to find a UAE national as your shareholder.
When it comes to taxes and financial incentives, an onshore company can also get the same exemptions as mentioned earlier but may have some variations depending on the location (i.e. if the office is located within a free trade zone or outside of a free trade zone). There are also paperwork involved like filing audit statements and completing documents for license applications. However, do not worry about these requirements and processes since you can always avail of the services of a company formation agency in Dubai who can assist you throughout your application.
For businesses that only need to have a virtual office because they would like to take advantage of the optimal tax and financial incentives that Dubai offers, there is the option to establish an offshore company. Offshore companies can have offices in the free trade zone areas of Dubai but cannot operate their business within the city.
As an offshore company, you can also get the tax exemptions and open bank accounts in Dubai but you cannot engage in any commercial transaction inside the country unless you get a local agent or distributor to handle your products or services.
Visit the Chambers Dubai Website now to find out more about onshore and offshore company formation in the UEA and how each option can benefit the kind of company you would like to setup.