International investors consider Dubai as a primary area for their operations in the Middle East region since it is the UAE’s commercial and financial center. Dubai, the second-largest emirate in the UAE, has a varied economy that draws multinational companies. The lack of foreign exchange limitations and trade obstacles make business setup services in Dubai an attractive place. Dubai is notable as an ideal place for multinationals and new companies hoping to build up a local presence and serve the rapidly developing business sector. Investors and entrepreneurs have three categories for establishing a business in Dubai, and we’ll look at those options.
MAINLAND
Mainland firms are the most well-established commercial organizations in Dubai. Before you may start conducting business on the mainland, you must first register with the Department of Economic Development (DED), which will issue you a Dubai business license. A mainland firm is an onshore enterprise with a Department of Economic Development license. The Department of Economic Growth (DED) is a government agency charged with overseeing its functions and promoting economic development on Dubai’s mainland. It issues three categories of company licenses.
I. Commercial licenses are required for any type of trade business.
II. Professional licenses for craftsmen and artisans, as well as professions and services.
III. Industrial licenses are required to start an industrial or manufacturing business.
The Advantages of Starting a Mainland Company in the UAE are:
- Easy access to inexpensive office space with the ability to rent/lease offices wherever you want.
- The ability to conduct business in any part of the United Arab Emirates
- There are no limitations when it comes to processing legal paperwork.
- There will be no annual audits. ยท There are no individual taxes.
- There are no restrictions on obtaining work visas, and the recruitment procedure is simple.
FREEZONE
A free zone is a geographical area with its own tax, customs, and import policies, as well as its own set of laws. The UAE’s free zones are without a doubt the most important foundation of the country’s expanding economy. Each free zone has its own independent free zone authority, which is in charge of awarding free zone operating licenses and aiding firms in setting up business in the zones. A free zone firm is governed by the rules and regulations of the free zone in which it is established. Dubai has established itself as a business capital, allowing businesses to set up business in its free zone, which provides investors with the following advantages.
- Full corporate tax and personal tax exemption
- Full ownership and repatriation of capital and profit
- There are no customs duties or currency restrictions
- There are no restrictions on work
- Environment that is conducive to business
- 100 percent foreign ownership
- High-level administrative help
- A cutting-edge communication network
The sort of business you intend to conduct will have a significant impact on which Free Zone is best for you. The following are some of the main Free Zones and their licensed activities:
- Dubai Multi Commodities Centre (DMCC)- Commodity Exchanges & Trade
- Jebel Ali Free Zone (JAFZA)- Trading, general trading, service, logistics
- Dubai International Financial Centre (DIFC)- Banking, financial services, and legal services
- Dubai Media City (DMC)- Activities related to the media
- Dubai Healthcare City (DHCC)- Medical education, research and healthcare
- Ras Al-Khaimah (RAK)- Industrial, general trading and educational
OFFSHORE
An offshore corporation is a legal entity that works legitimately outside of its registration jurisdiction in order to reduce taxes. An offshore corporation is one that is incorporated in Dubai but is headquartered outside of the municipal limits. For creating an offshore firm in Dubai, limited liability companies, limited partnerships, and limited partnerships are all viable options.
Foreign investors can hold 100 percent ownership of the company
Access to a judicial system that is both trustworthy and business-friendly.
Corporations are exempt from paying taxes.
Easier economic contacts through facilitating multi currency bank accounts
Preserves the company’s confidentiality by refusing to reveal information about its owners
Exemption from annual accounting and tax obligations.
JUMEIRA CONSULTANTS is a major corporate service provider specializing in company formation and related services. We pledge to give you the most transparent, high-quality backend, smooth operations, and tailored solutions possible. Our distinctive, strategic, and inventive strategy assists the entrepreneurial mind in establishing company roots and increasing productivity.
