Dubai has stood out in the United Arab Emirates and around the world for being considered an international business center as a result of its pro-business policy and for the flexibility of its legal and tax system that allows investors to optimize the taxation of your society.
The advantages that arise when considering setting up a company in this economic capital are multiple, it should be noted that:
At the fiscal level, there are no corporate taxes, withholdings, VAT, income tax, social charges, income tax, wealth tax, and there is no exchange of information abroad.
At the banking level, there is an efficient and reliable banking network, and
At the legal level, a local, modern and flexible law is applied, accompanied by a simple, efficient and agile registration process.
In addition to this, there is an effective communication system, since the airport is globally connected.
A foreign entrepreneur can expand or create his company there, being possible to adopt one of the following three solutions:
1. FREE ZONE Company:
It is an optimal alternative for those who wish to open and establish their company in the so-called "free zone", that is, in a defined geographical area where financial and tax advantages are agreed upon for the companies that are established, which allows a very favorable economic development.
In this way, in certain areas, companies do not pay corporate taxes or income tax, which is why certain free zones in Dubai stand out.
Currently, there are approximately twenty free zones in that city, such as Gold & Diamond Parc, Silicon Oasis, Customs & Free Zone Corp, Metal & Commodity Center, and Palm Island Development.
The advantages of forming a business in these types of areas of Dubai are staggering, including the following:
• The company can be owned by a foreigner in its entirety, which allows him and his employees to obtain a residence and work visa, valid for 3 years and renewable for life. Your family can also benefit.
• You are not forced to pay corporate tax or VAT. You only need to pay a 5% customs duty for the sale of goods in the Emirates.
• Among the personal tax advantages, you are allowed to be exempt from income tax, wealth and wealth tax, as well as social charges.
• It gives you the right to hire staff and have business relationships with suppliers and clients - companies - in the United Arab Emirates.
It has 3 alternatives of activities admitted in these areas, which can be consulting, negotiation, and holding.
Before choosing the option that best suits your needs, we must verify that your activity is admitted in the UAE (United Arab Emirates). Indeed, for certain specific activities, it is essential to respect the regulations and obtain additional authorizations, which may be resolved by our team in the event of trying to avoid major inconveniences for the development and growth of your business.
2. NOT FREE ZONE Company:
An onshore company installed in a non-free zone is a local company, which can also be called LLC or DED.
Unlike a free zone company, here you have the freedom to choose your activity, as long as it is legal in the country and has specific authorizations.
Also, the location is free, not being delimited by a free zone as such.
The tax advantages are maintained for this type of company, so there is no corporate tax or income tax. Similarly, with a local company, it is possible to obtain a residence and work visa. With this solution, it is possible to hire employees, for this the local labor legislation will be taken into account.
Here, the main obligation with the local society is that its capital can only be in the possession of the employer by 49%. The remaining 51% must be in the hands of an Emirati.
It is important to know that local laws apply, so we recommend that you seek the advice of an attorney to avoid potential litigation.
3. OFFSHORE Company:
It offers managers the possibility of creating an import-export company, a consulting company - advising or providing services - or a holding company - or a parent company of a group - without the need for an Emirati.
It is not possible to open offices, hire employees or work with local suppliers. There are no taxes in the case of an offshore company in Dubai, but the latter cannot practice directly in the country. Above all, it is about being able to benefit from the country's tax advantages.
The company can practice all activities except for banking activities, regulated financial, insurance and all those located in the Emirates - except for taking shares or real estate in the Emirates.
The bank account can be located anywhere, but in the face of a credibility problem for your company, we advise you to have a professional bank account in Dubai, which has certain characteristics studied by our team.
Many jurisdictions are considered tax havens, so choosing a reliable and powerful jurisdiction ensures the safety of your activity.
The Emirates benefits from an excellent image as it is not considered a "tax haven" and is not on the OECD blacklist of tax havens.
An Offshore company in the Emirates can carry out many activities, the only limitation is that depending on the type of license - offshore license - your company cannot have any activity in the Emirates - it cannot have customers or suppliers in the Emirates but it can have a bank account-.
The tax benefits are still there, so you don't have to pay taxes or fees on profits or dividends, or capital gains. You simply have to pay a fixed annual fee of a few hundred euros.
At the same time, offshore companies are not required to maintain or present their accounts.
This type of company is characterized by being a discretionary option, as a consequence of the fact that the shareholders who create an offshore company are anonymous and their identity is not registered in the local Registry.
Finally, with the options currently available, we highlight the need to have a specialized team like ours to provide you with the relevant information so as not to miss out on the opportunities that this city offers us.
We advise people with a high net worth, owners of SMEs or emerging companies, and investors who are committed to growing their company at levels never before imagined.
How do we do it? Taking care of the creation of the company, the opening of bank accounts, and the obtaining of visas, after being attentive to the commercial strategy of the company to seek the best fiscal and commercial results.