Dubai is one of the most attractive destination for foreign enterpreneurs to start a new company with a good reason. It has managed to offer an attractive range of benefits to businessmen from all corners of the world. Some of the main benefits of doing your business as a Dubai company

A Dubai company can be an extremely powerful tool to boost your businesses and personal finances. Through the Dubai banking systems massive commitment to the Dubai real estate market, foreign entrepreneurs can also get a loan, buy a property from as low as 20% up front, and get their loan paid back from the income from AirBNB. 

For many clients, Dubai is an alternative to the U.S. and Europe, and a symbol of ideological, religious and cultural openness, neutrality and acceptance. 

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Warning, attention

A company in a specific country is not a „one size fits all” solution. You definitely shall not purchase this specific service without guidance from a properly qualified professional. The benefits we’ve listed are true, but to profit from them, you need a personalized tax planning, and first off, you need to consult with a professional, wether your specific business is eligible for those benefits or not. According to statistics, one third of companies set up by foreigners in the countries where we’re active, don’t survive till the second year. The reason is, that people are deluded into believing, that a tax optimization plan can actually work without any personal planning and individualization. The benefits we have disclosed here, are only valid for the clients, that are guided through the whole process by our highly qualified and experienced professionals. Detre Varga & Partners LLP. assumes no liability, if internet users try to implement our know-how by hiring third persons instead of us.

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Dubais economy was originally restricted from foreign businessmen. After the leadership has decided to open the countries gates for foreign capital, foreigners were allowed to own shares in companies formed in specific designated economic districts, named free zones. The first free zone, the famous Djebel Ali FZ has been opened in 1985. Today, more than 50 free zones are competing for foreign investors, offering more and more attractive services and facilities. 

A free zone is an avatar of the State, but at the same time, it's runned like a company. Freezones are managed by "freezone authorities" but they offer services for payments, and market themselves as companies do. Freezones originate their powers and authority from the State, or more precisely, the Monarch (sheikh). These authorities are not unlimited, and as a consequence, specific free zones are not allowed to register every single business activity for foreign companies. In Dubai, the basic concept of company law if a "licence", a permission from the Dubai state to pursue a specific activity through a specific freezone. A companys licence can extend to a few (but usually not more than 5) main activities. The licence shall be renewed every year. 

The 50 member states of Dubai and the UAE offer a variety of benefits to foreign ventures. It is possible to set up a company in Dubai that pays absolutely zero tax for incomes, that are made outside the territory of the UAE, while the entity does not count as an offshore. Yes, it’s a fully domestic Dubai or UAE company, with a UAE registration and licence number and a local bank account, but the income generated outside UAE territory is taxed with 0%. 

 

It’s important to note, that not all activities and not all countries citizens are eligible for the full range of benefits. A UAE company formation shall be planned well by our tax advisory team, taking all aspects of your business activity to consideration. Tax law shall be approached by professionals with 10+ years of experience. Neglecting preliminary consultation and planning may lead to risks of sanctions, or even criminal charges. 

 

As said before, a UAE company is the best option for activities generating incomes and providing services (or selling goods) outside the Emirates If you plan to sell products or services within the United Arab Emirates, you may still see great tax benefits, but you need to consult with our experts, on how to optimize your taxes the most.

 

Beside taking the locality into consideration (inside or outside the UAE), there are some activities, which are most suitable to pursue with a Dubai or UAE company.

 

 

It is not sufficient receive advice on Dubai taxation (which is not 0% in every scenario, in some instances there are taxes imposed on company income), you need to talk with our expert about the international tax treaties between the United Arab Emirates and your country of tax residency (the state in which you’re counted as a tax resident). 

 

This means that before setting up a Dubai company you need to find out, in which state(s) you’re counted as a tax resident. This sometimes requires complex analysis by an expert. 

 

There are no quick fixes, shortcuts or simple solutions. You need to understand the basic concepts of your businesses and your personal taxation. Anyone trying to sell you a standard, one size fits all solution, is not to be trusted. The company formation is only 10% of the solution, 90% is the individual tax planning and consultation, that’s inevitable to get a successful start. 

 

Can I get a UAE visa (residency, etc.) through my company?

 

Absolutely yes, and the Dubai residency, AKA Emirates ID is one of the main reasons foreigners choose Dubai for incorporation so often.

 

Can I have a physical address (not a P.O. box) in Dubai and a local phone number?

 

Our Dubai office offers physical address, if any third party (bank, authorities etc.) requires. It will be a real, physical office address. 

 

We can also provide a land line number (local Dubai number), but it makes more sense for you to register a virtual UAE number, which is a real local phone number, virtually connected to your device. The demand for local phone numbers is great, therefore, specific service providers have developped a service for this need.

 

How much does a Dubai company formation cost?

 

You’ll get specialized consulting with us, so we can get a better understanding what you’re actually dealing with, and your specific circumstances. Based on this, we’ll recommend you one of the 50 UAE free zones to incorporate in, that’s the best for you personally.

 

Therefore, it’s difficult to assess how much exactly a UAE company formation would cost, but let us tell you one thing, in more than 90% of our clients, a Dubai company is among the cheapest solution overall, among companies in the whole world. Therefore, if a Dubai company suits your business at all, the formation and the maintenance fee will be cheaper than most countries in the world. 

 

How can the best economy be among the cheapest?

 

How can the best engine consume the least fuel? The best solution needs to be the simplest, and the simplest needs to be among the cheapest. 

The UAE registers hundreds of thousands of companies per year, that all pay a fair, but recurring fee to the State. Almost all of the companies or their shareholders would invest in one way or the other in the economy of the UAE. The most typical form  of investment is buying a property, or just travelling to Dubai and spending money as a tourist. Even though many business schemes remain totally untaxed, the spending of foreigners in Dubai is beyond imagination.

 

What are the steps of a Dubai company formation?

 

You need to book an appointment for a Dubai company formation on our website (see below).

 

To complete the booking, you’ll need to answer a few questions. It’s not meant to bother you, but we’re extremely busy, so if we once sit down with you online, and spend almost an hour on you, we need to be as prepared as we can be, to give you well reasoned, substantial advice.

 

Once you’re done with the booking, we’ll consult with you online, and come to a conclusion, wether and how we can cooperate with you. Thanks to the screening questions mentioned above, and our experts preparation for our online consulting session, in just one go, we can reach a conclusion together, in which jurisdiction you should be incorporating, and we can jump to the incorporation process right away.

 

At the next step, we guide you through the incorporation process fully online. Depending on the free zone, your Dubai company may get registered within 2-3 days. This allows you to purchase your company domain, open an online IBAN number, and start your activity. However if you need a local UAE bank account, it will take a bit longer. In this case, you’ll need an Emirates ID, that may take a week, and you to travel to Dubai. Once your Emirates ID is in your hand, we’ll apply for the Dubai bank account with you. The total process can take even 2 weeks. Beware, most service providers don't notify you the total cost of the procedure from company formation to bank account opening, and you'll learn about extra expenses step by step. On the other hand, many agencies take the cheaper option, and don't have access to a top tier Dubai bank, leaving their clients with lower ranking payment providers, that aren't even real banks technically. 

To get started right away, book an appointment here!