With its central location and advance facilities and infrastructure, Dubai has become the focus of a lot of investors, both foreign and local, when they are looking for cities to go to in the United Arab Emirates. This city, which is made up of about 85% expatriates, has made their location an open city and has welcomed many people from different cultures to establish themselves and make a living in the region.
Here are just some of the things your company can get if you are successful in starting your business in Dubai:
- Full tax exemption from corporate
- There is no value added tax and sales tax
- No income tax
- Full exemption on wealth tax
Two Types of Companies in Dubai
When you go to Dubai to setup your business, you will need to choose from two types of companies: onshore or offshore. Though the application for these two are both easy once it’s started, the requirements are different and you may find it harder to fulfill some of them depending on your current situation.
For onshore companies, they open their offices within the mainland areas of Dubai. They are the ones who usually center on getting the business of residents in the city or the local market so they really need to have an office in the center of Dubai. An onshore company is allowed to fully operate within the city and rent an office space in any building or establishment they deem fit to their operations. There is one drawback for some foreign investors when it comes to onshore companies and that is they need to find a local partner before they can proceed on doing their company formation in Dubai.
For offshore companies, they cannot open an office within Dubai but instead can operate at designated free trade zone areas in the country. In a free trade zone, the companies also get the same great facilities and tax exemptions, but can only operate outside of Dubai. For example, if you want to engage in importing or exporting, then your business is perfect to be stationed in a free zone area because you do not primarily target the local customers in Dubai.
Start Today with Company Formation in Dubai
Deciding whether to go for an offshore or onshore company in Dubai is the very first major decision you will have to make before you can truly be focused on starting your company incorporation in the city. You can know more about the latest on company formation rules and fees by contacting a reliable company formation agency in Dubai.
You can simply search online for established company formation consultants or ask yoru contacts in Dubai for referrals. There are also many videos and forums you can watch and participate in to get more information about which agencies are well-known and are credible but also do not charge exorbitant fees for their consultation services. Finding the right agency is the best way to start your business move to Dubai.
Know more about company formation in Dubai at Chambers Dubai.