Top 8 Advantages Of Company Formation In Dubai

Business in Dubai is sought after by entrepreneurs from all over the world. The authorities in Dubai are trying to shift the economic focus of the country from the oil and gas industry. As a result, they are providing a lot of incentives for businesses in other sectors. The main contributor in this endeavor is the expatriates. Businessmen from all around the world are flocking here thanks to the advantages of company formation in Dubai.

Advantages of Company Formation in Dubai

Here are the advantages of company formation in Dubai:

1. Tax Haven:

Dubai is a tax haven for foreigners looking for offshore companies or even to move to the UAE permanently. Currently, businessmen in Dubai get 100% exemption from taxes on their personal and corporate incomes. This means that they do not need to pay taxes for the income of their business nor their personal drawings. This helps businesses reinvest a greater percentage of the profit from their businesses. As a result, they can expand and grow much faster than other places in the world. Dubai can sustain this 0% tax policy thanks to its buzzing oil and gas industry.

2. Easy Formation:

Company formation in Dubai is easier compared to the rest of the major cities in the Middle East. The Department of Economic Development in Dubai is responsible for the registration and regulation of new businesses here. They provide the initial and the final approval of your business trade license. This means you can complete the majority of the company formation process in one place. An even easier way to start your company is with the help of business consultants in Dubai.

3. Zero Currency Regulations:

Dubai has no restrictions on any of the currencies in the world. You can freely move the capital to and from your respective country. Dubai allows 100% repatriation of capital and profits from your business. That means you can do your business here and move all your profits back home without any restrictions. There is also a 100% exemption of import and export duties in the free trade zones in Dubai. The mainland has a very low tariff on imports and export.

4. Abundant Office Options:

There are a wide variety of office options available for businesses in Dubai. These office spaces include serviced office space, shared office space, coworking office space, virtual office spaces, traditional office spaces, etc. The Estidama or Sustainability program in the UAE allows small businesses that do not require a physical base of operation to rent virtual office spaces. These offices provide you a professional business address without any of the high costs associated with it.

5. Easy Recruitment:

Workers, laborers, employees, and highly skilled professionals from all over the world come to the UAE for work. You can easily hire the perfect fit for your business from the locality. Dubai also allows you to sponsor visas for a certain number of your employees depending on the size of your office space. The bigger the space, the higher number of visas you can sponsor. So you can hire from anywhere in the world and help them come over to Dubai to work for you.

6. Easy Immigration:

The immigration process in the UAE is very easy once you own a business here. The government announced the Golden Visa that allows business owners, investors, exceptional students, and researchers to seek long-term residence in the UAE. The numerous free zone in the UAE also helps entrepreneurs and employees with the immigration process. The UAE welcomes you as long as you are bringing something to the table, be it an investment or specialized skills.

7. Abundant Business Activities:

The UAE allows almost all business activities that are considered legal. Foreigners can perform these business activities with minimal restrictions. As a foreigner, you can own 100% of any businesses in any sector that are not strategically important to the government of the UAE. One of these sectors is the oil and gas industry, where you cannot own more than 49% of a company as a foreigner. The rest of the 51% have to be owned by an Emirati.

8. Excellent Infrastructures:

Dubai has the best infrastructure among all the major cities in the Middle East. The city is built by some of the most brilliant minds in the world. The materials used are also the best you can find in the market. The office spaces have state-of-the-art hardware and tech. It is important for businesses to grow in a stable market and geopolitical environment. The recent COVID-19 pandemic has proven that there are enough uncertainties as it is. Dubai’s excellent infrastructure ensures you have one less thing to worry about.

Process of Company Formation in Dubai

You cannot reap all these benefits if you are stuck in the company formation process in Dubai. The UAE ranks 16th in the index for ease of doing business in the world. However, company formation in Dubai is much easier than in the rest of the UAE. Abu Dhabi is close behind as well.

Here are the steps in the company formation process in Dubai:

1. Choose the business activities you intend to perform in Dubai.

2. Choose the legal structure for your business that will dictate the rules and regulations your business is subjected to.

3. Apply for the initial approval from the Department of Economic Development in Dubai.

4. Register the trade name for your business.

5. Choose an office space for your business, get the tenancy contract, and EJARI.

6. Get the external approvals that are required from various government bodies and agencies.

7. Submit the necessary document and complete pay the fees.

8. Receive the business trade license and commence business activities.

If all this still seems too complicated to you, there is one easier option for you. You can select the services of professional company formation experts. These experienced business consultants also provide various other services that will make the formation and operation of your business smoother. If you are looking for such consultants, you are always welcome to contact us.