If you are a foreign company and wish to setup your business in UAE, you can select to establish operations like registered company, representative office, or as a branch. If needed, you can even hire a commercial agent to export your products or sell the products across UAE market. New startups can also select and conduct activities from Free Zone. A Free Zone is a self-regulated, designated area setup to catalyze economic activity within the emirate. It is administered by its own customary regulations and rules. At present, there are about 40 Free Zones around the UAE which most of them are in the development stage.
It is necessary to have a clear knowledge about your options before planning for company formation in Dubai. If in case, you take a wrong choice, the overall development of the company gets affected badly. We have shared some important points to consider when finalizing the structure of your business.
- The present status and nature of your business
- Present capital to invest
- Business expansion plans
- Requirement for outside investors or need to appeal to investors in the later date
- Company risk and personal liability
- Tax inferences of structure
- Audit and other necessities to remain submissive locally
- A mixture of companies and persons
Establishing an offshore business in Dubai
The main benefits of establishing an offshore business in Dubai are as follows:
- It is not required to submit the account details of the company. Those accounts will be shared only to the shareholders.
- When it comes to share capital, there is no minimum amount needed in free zones.
- If it is offshore company, 100% complete foreign ownership is permitted.
- Privacy protection and anonymity are definite by UAE company law.
- There are no VAT, capital tax, corporate or personal tax (except for the oil producers or foreign banking branches).
It is possible to start an offshore company in Dubai with even one shareholder. It can have around a maximum of fifty members. This kind of business should be administered by a secretary and two directors. It is necessary to mention their names in the record of directors from the Dubai Registered Office. However, their details will not be available or shared to public. It is not compulsory to conduct general meetings for offshore business in Dubai.
Dubai is the prolific land in the United Arab Emirates. It provides several tax benefits to foreign investors. Besides, Dubai is one of the important business regions in the world. So, it is completely worth to consider company formation in Dubai.