Being the 2nd largest & most populous emirate of the UAE, Dubai is also a major financial, economic & cultural center. Dubai's closest neighbors are the emirates of Sharjah & Abu-Dhabi. The key sectors of the Dubai economy include oil production, trade, construction, real estate, tourism & shipping.
The capital of Dubai is the city of Dubai. Dubai has a population of more than 2.2 million people. The official languages are Arabic & English. The national currency is the Dirham (AED).
Registering a Company in the UAE: Advantages
According to the 2021 Doing Business rating, the UAE is ranked:
- 15th for protection of minority investors;
- 11th for ease of doing business;
- 9th for fulfillment of contract conditions;
- 7th for ease of property registration;
- 5th for obtaining building permits;
- 2nd for the simplicity of the tax system;
- 1st for connection to the power supply system.
Those wishing to open a company in Dubai or open a bank account in the UAE can take advantage of the following benefits:
- geographical position (availability of major ports located at the intersection of trade routes from Southeast Asia, Africa & Europe);
- dynamically growing economy;
- stable socio-political situation;
- high GDP;
- programs for the development of SMS businesses;
- foreign investments;
- DTA agreements with over 63 countries;
- 20 free trade zones.
If you’re going to open a business in the UAE, your best solution would be to register a company in a Dubai Free Zone.
Types of Companies in the UAE
Those wishing to remotely open a company in the UAE can choose from one of the following business organization forms:
If you intend to register a company in Dubai, your best choice would be FZE & FZCO. Their advantages include quick & easy registration procedure, few documents, convenient management scheme & complete exemption from taxation. You can also open a branch of a foreign or already registered enterprise in the UAE, as well as open a branch in another FEZ (if you already have a registered company in the UAE).
To register a company in the UAE, you will need to comply with the following requirements:
- choosing a unique company name;
- having at least one founder (can act as a director);
- having at least 2 directors (individuals and legal entities);
- having shareholders: from 1 for FZE, from 2 to 50 for FZCO (individuals / companies);
- having a secretary;
- having a minimum authorized capital: from 300,000 AED;
- keeping accounting records for 10 years;
- renting or buying an office in the selected FEZ;
- getting a business license.
Those interested in registering a company in a Dubai Free Zone will have to pay the following taxes:
- VAT - 5% (full tax exemption is possible);
- oil & gas production tax - up to 55%;
- banking tax (for branches of foreign companies) - up to 20%.
Please note that there’s no personal income, dividends & capital gains taxes.
Seeking to open a business in Dubai? Need advice on company registration in Dubai? Why not contact IQ Decision UK?