Business Setup in Dubai 2021
Given its ease of doing business, attractive tax options and Free Zones, companies from around the world are flocking to Dubai to set up new companies. To the uninitiated, setting up a business in Dubai can appear quite daunting at first, especially in terms of the administrative, financial and technical requirements. But providing that you choose to work with experienced company formation consultants in Dubai, the setup process can be fast and seamless. Working with our business formation experts in Dubai, you can get set up and trading
- EASE OF DOING BUSINESS: The World Bank has rated Dubai as the 16th easiest place in the world to do business out of 190 countries rated. Up until 2018, the country was rated as the 11th best place in the world in terms of this indicator. Underlying indicators to the World Bank index include how conducive the regulatory environment is in terms of facilitating business operations, as well as how well foreign and local property rights are protected. Countries ranking in the Top 20 typically have simple, straightforward business formation processes and regulations that are easy to adhere to, with very little bureaucratic red tape.
- TAX BENEFITS: Economically speaking, the government of Dubai has sought to create an enabling business environment with the minimum obstacles to foreign investment and success. Some of the measures implemented to facilitate this include:
- As of 2020, the Dubai VAT rate is set at only 5%, with exceptions across various food types, health, education and social services.
- Dubai based employees are not required to pay personal income tax
- Dubai does not charge any direct corporate taxes, except for those applicable to oil and gas companies and the branches of foreign banks.
- Customs duties are exceptionally low at 4%, with many exceptions.
- 100% repatriation of capital and profits is permitted
- Dubai has no trade quotas or trade barriers, and no foreign exchange controls are applicable.
3. COSMOPOLITAN BUSINESS HUB
Dubai is the second-largest economy after Saudi Arabia. Home to over 200 nationalities, Dubai is the world’s most cosmopolitan city. In addition to being a strategically located business destination, Dubai is a hub for financial services, hospitality, retail, healthcare, services and renewable energies, with some of the largest companies in the world headquartered in the city. The diversified economy makes the city the business location of choice for small, medium sized and multinational enterprises alike.
4. UAE FREE ZONES
In an effort to drive foreign investment and economic diversification, the government of Dubai created over 30 Free Zones, also known as Free Trade Zones. These are essentially economic areas where services and goods can be traded at preferential customs and tax rates, making them highly attractive for companies seeking to establish a business footprint in the UAE while optimizing their global tax commitments. There are currently 45 Free Zones across the UAE, however the majority of them are situated in Dubai.
Tax efficiently in the shortest time possible.
Discover the basic steps required to set up a new Dubai business below, or contact us now for a free consultation