Dubai is a city with lots of possibilities and opportunities for financial growth. The city is known as the business hub by the folks who are into the world of business. It is the Safest place to invest in the entire Middle East and North Africa (MENA) region. The reason for this claim is that it is forecasted for the fiscal year 2024 that there is an anticipated increase in actual GDP of UAE by 4%. This all makes it the lowest risk country for investment in the entire region. Moreover, Dubai provides the chance to establish the business in the free zones and main land area for the purpose of business setup in Dubai. The process of setting up in Dubai is simple and straightforward as it only needs thorough documentation.
The Main Things to Know Before the Business Setup in Dubai
People are looking to start up a business in Dubai but without the knowledge of the terminologies and available business possibilities it is not possible to launch your setup in the area. For this purpose, we will get a comparison of the Mainland, Free Zone and Off-Shore companies in the UAE.
Mainland Companies
The mainland companies in Dubai enjoy a vast range of business possibilities within the UAE border or outside the country. Business Setup in Dubai Mainland is an option that offers the facility to register the business in the Entire UAE which means that you can open up the branches anywhere in the country. The other superb thing about such companies is that you have the option to register the business with 100% ownership for the traits. All the businesses are regulated by the Department of Economic Development.
Benefits of Mainland Business
- Trade Flexibility
It gives the flexibility to trade your business in the entire UAE and also internationally through UAE. - Open Branches
It gives the option to expand the business in the entire UAE and therefore it gives location flexibility. - Open Office Anywhere
Open office anywhere which means you can make an office in a shop or any other commercial place. - 100 % Ownership
It gives the chance of 100% ownership for most of the sectors. Only a few strategic sectors need a local partner. - Low Taxation
The low taxation helps the business to grow vertically and faster. There is 5% VAT and 9% Corporate tax and there is 0% income tax. It all makes Dubai a paradise for investors.
Other Facts
- Regulations
More documentation is required from time to time as any change affects the country. - Emiratisation
For every business in the mainland it is needed that 2% of the total employment must be arranged for the local Emiratis.
Free Zone Business Setup in Dubai
The Dubai Government introduced the concept of free zones to attract foreign investors. It offers 100% ownership of the business without making any alliance with the locals. If we check t5he taxation rates then there is only 9% corporate tax and there is no other form of tax levied on the businesses here. Currently there are 30 free zones in Dubai and they are registering businesses from the various sectors.
Benefits of Free Zone Company in Dubai
- Legal Owner
Be the solo owner of the company or you may add partners but there is no need to add a local agent. All the bank accounts to be opened with your name. Therefore, you have complete freedom. - Taxation at Its Very Best
Be the legal owner and also enjoy the lowest tax rates in the area. There is only a 9% corporate tax and no threat of VAT. The income you generate is all yours because there is 0% income tax. - Currency Restrictions
You have the freedom to trade in any currency. Therefore, you get the freedom to run the business in the currency of your choice. This makes Dubai the ideal place for the businesses. - Industry Specific
All the free zones are industry specific therefore you can get the opportunity to register the business in the specific free zone where you can access all the backup support needed to run the business.
Other Facts
- Trade Limitations
You have the limitations to register the business in a specific trade and this makes it convenient to get support. - Location Restrictions
You have the location restrictions because you cannot trade directly in the Dubai mainland as you need a distributor for your business growth.
Offshore Companies
Offshore company registration provides the opportunity to register the company from anywhere. You can run the business operation from your place. You even do not need any office setup. This provides the great opportunity for a big businessman to register the business in the country.
Benefits of Offshore Companies
- Trade Limitations
You have the limitations to register the business in a specific trade and this makes it convenient to get support. - Location Restrictions
You have the location restrictions because you cannot trade directly in the Dubai mainland as you need a distributor for your business growth. - Offshore Companies
Offshore company registration provides the opportunity to register the company from anywhere. You can run the business operation from your place. You even do not need any office setup. This provides the great opportunity for a big businessman to register the business in the country.
Other Facts
- Limited Business Operations
The business operations are limited and you cannot conduct business in the UAE local market. - Ownership Issue
You need a local agent to register such a company. This restricts your ownership to 49%. But people are still investing in this type of company. - Banking Restrictions
There are challenges in registering bank accounts because the government may not allow you to open the bank accounts in the UAE.
