There are many reasons to set up a business in Dubai. The city’s strategic location, tax-free environment and world-class infrastructure have made it a popular choice for businesses from all over the world. However, there is one more reason to consider Dubai as your business destination – the city’s gamed the system.
Dubai’s economic boom happened at a time when the world’s economy was struggling. But after the global financial crisis, Dubai managed to attract even larger investments. During this period, Dubai saw unprecedented development and expansion of its infrastructure. This helped it establish itself as one of the leading business hubs in the world.
Is Setting Up a Business in Dubai Dead?
It seems that things were too good to be true, and they were. In 2009, Dubai’s debt crisis came to light and the city’s economy went into a tailspin. This crisis was a result of Dubai’s reckless development policies and its dependency on borrowed money.
The good news is that Dubai has recovered from its debt crisis. The city has implemented strict financial regulations and is now in a relatively better position. However, Dubai’s debt crisis provided a golden opportunity to businesses looking for cheap labour. The city developed policies that would attract more foreign investments and offer its workforce cheaper salaries compared to other cities in the Gulf Cooperation Council (GCC).
Business Guide For Beginners
In short, business owners from all over the world can benefit from setting up a business in Dubai. The city has a well-developed infrastructure, a favourable tax regime and a large pool of skilled labour. Additionally, businesses can take advantage of the city’s gamed the system policy to get a competitive edge over their rivals. So if you’re looking to set up a business, Dubai should be your go-to destination.
Main Types Of Businesses Established In The UAE
There are three main types of businesses established in the UAE which you can choose from:
1- LLC (LIMITED LIABILITY COMPANY) 2- Branch office and 3- Sole Proprietor
We will Explore the First one Here:
We understand that every business is different and we look at each client individually to advise them on their best business structure. LLC’s are becoming common in Dubai as they offer a great balance of responsibility and protection for the owners of the company. This type of company has more flexibility than others and offers great tax benefits.
Savings in taxes on turnover (profits) and personal income (salary) can be significant with an LLC, which is why they are becoming very popular. A business may also elect to distribute some of its earnings as a dividend while remaining exempt from any tax on this distribution.
Taxation of Dividends To whom are Dividends Taxable?
Dividend income received by non-residents is not taxable. However, dividends received by residents are subject to 5% tax. Read full article here: UAE Corporate Taxation
Setting up a LLC in Dubai We at MICO International FZE help our clients set up their LLC’s in Dubai. There are a few simple steps involved in setting up your LLC which are as follows:
1- Get your company name approved
2- Register with the DED and get your trade license
3- Set up a company bank account
4- Purchase or rent office space
5- Start doing business!
There are a few things to keep in mind when setting up your LLC. The company must have at least one local director and one local shareholder. The director can be of any nationality, but the shareholder must be a UAE national. Also, the company must have a physical office space in Dubai (although this can be rented).
For more information on how to set up your LLC in Dubai, please contact us at info@micointl.com and one of our consultants will be happy to help.
Setting up a Business in Dubai
Setting up a business in Dubai can seem daunting at first, but with the help of a professional consultant it can be a very smooth process. The main types of businesses available in the UAE are: 1- LLC (LIMITED LIABILITY COMPANY) 2- Branch office and 3- Sole Proprietor. We will explore the first one here:
We understand that every business is different and we look at each client individually to advise them on their best business structure. LLC’s are becoming common in Dubai as they offer a great balance of responsibility and protection for the owners of the company. This type of company has more flexibility than others and offers great tax benefits.
Savings in taxes on turnover (profits) and personal income (salary) can be significant with an LLC, which is why they are becoming very popular. A business may also elect to distribute some of its earnings as a dividend while remaining exempt from any tax on this distribution.
Taxation of Dividends To whom are Dividends Taxable?
Dividend income received by non-residents is not taxable. However, dividends received by residents are subject to 5% tax. Read full article here: UAE Corporate Taxation
Setting up a LLC in Dubai We at MICO International FZE help our clients set up their LLC’s in Dubai. There are a few simple steps involved in setting up your LLC which are as follows:
1- Get your company name approved
2- Register with the DED and get your trade license
3- Set up a company bank account
4- Purchase or rent office space
5- Start doing business!
There are a few things to keep in mind when setting up your LLC. The company must have at least one local director and one local shareholder. The director can be of any nationality, but the shareholder must be a UAE national. Also, the company must have a physical office space in Dubai (although this can be rented).