Establish your business in Dubai

Over the past decade, the world has witnessed the rise of Dubai as one of the world’s leading business destinations. Dubai, one of the seven emirates of the United Arab Emirates, has been very kind to investors from regional and international companies looking to set up business here. While the global recession has affected much of the world’s financial and business sectors, Dubai has continued to be a darling of investors around the world as it remains tax-free and has a diverse politics.

Benefits of establishing a company in Dubai

The very attractive low tax system of the emirate of Dubai makes it a perfect place to set up business in Dubai. If you are a company based outside of Dubai looking to start or expand your business here, you know it’s worth it. International and locally based companies have thrived in Dubai, from the financial and media sectors to construction and hospitality. The prime location of the United Arab Emirates in the Middle East region, where East meets West, has been a factor in the country’s success and wealth.

Dubai is one of the fastest growing cities in the world and one of the most cosmopolitan. Dubai offers opportunities similar to those of a first world country. While the requirements depend on the type of business category you wish to establish, Dubai has progressed economically over the years. With the global recession affecting various countries around the world, the safest place where you can set up a business is Dubai. Have you ever wondered why international companies from the US, UK and Europe establish offices in Dubai? The benefit of setting up your business in Dubai goes far beyond the luxury and liberal atmosphere that the city has to offer.

Things to know about starting a company in Dubai

Internationally based companies have many alternatives to establish their business here in Dubai. There is a Limited Liability Company (LLC) that allows a foreign company to become a shareholder incorporated in the UAE. The requirement is that you find and make arrangements with a local sponsor who owns 51% of the total shares of the company. After making arrangements with a sponsor, you will need to pay the fee up front which is currently AED300,000.00 paid in cash or otherwise, as the initial share capital must be paid before such an LLC is established. Other rules and regulations of the UAE Law is that a foreign seller shareholder cannot buy the shares of the sponsor.

Establishing an authorized branch in Dubai is an alternative. The UAE requires registration with the authorities through a local agent or sponsor. The sponsor organizes all legal issues with the government, thus providing assistance for the registration of licenses, work permits and others. This type of category in the creation of a company is recognized in the Companies Law, although a sponsor now governs the operation of the branch.

Once you are a licensed branch in the UAE, you will be authorized to sponsor your staff, lease offices, and also enter into contracts on behalf of your company. The only thing that is not allowed is the importation of goods, as this will require cooperation with your sponsor.

The best option to establish a business in Dubai or anywhere in the UAE is through the free zones. Free Zones allow companies with an international and regional base full ownership of their business, in addition to having a single shareholder and director. In this case, an agreement with a local sponsor is not necessary. Free zones in Dubai, such as Dubai Airport Free Zone, Dubai Tech, E-Commerce & Media Zone, Jebel Ali Free Zone and others, are exempt from the tax system. Once established, you can sponsor or issue work permits, process licenses with the authorities of the free zone. Right now, there are more than 10,000 companies that have established themselves in one of the free zones in the United Arab Emirates. They enjoy no restrictions on earnings, wages, repatriation, and capital transfer.