A Beginners’ Introduction to Company Incorporation in Dubai
Dubai offers a great prospect for startups from all fields. The process involved in company incorporation in Dubai differs according to the type of company and the amount of investment. In most conditions, the Dubai Company Act allows incorporation only when a foreign investor has a local partner owning the majority of the company shares. However, the Dubai free zones are the only places where investors may setup fully owned companies.
Dubai has one of the fastest growing economies and one of the most rapidly growing real estate markets in the world. This fast moving city attracts a large number of investors from all across the globe, offering them overwhelming investment opportunities and options. Foreign investors in Dubai benefit from attractive financial incentives, tax exemptions, minimum capital requirements, high repatriation of profits and a lot more.
Investors who plan to set up an offshore company in the Dubai are offered several advantages in the free zones like a 0% corporate tax, a business-friendly environment, confidentiality for their business and a flexible jurisdiction. Though setting up an off shore company in Dubai is a common practice among investors, most people prefer on shore free zone company incorporation in Dubai because of the high tax advantages if offers. While, on shore companies get to operate amidst the local market setups in the UAE, such companies require a UAE national holding at least 51% shares as a partner. Major perks of being under the on shore jurisdiction is a tax-free economy, a simple regulatory system and standing a possibility of owning property in UAE. A closer access to Dubai’s skilled workforce and a multiple currency bank account for companies makes it even more preferred.
Apart from the off shore and on shore company incorporation opportunities in Dubai, the UAE is known for its Free trade zones that offer adversarial conditions for startups for performing business. Dubai alone has around 20 free zones dedicated to a number of business activities, like medical, media, outsourcing, maritime, to name some. Company incorporation in Dubai free zones can be highly advantageous for investors with multiple benefits such as a business friendly environment, no corporate tax, 100% foreign ownership and an easy access to the major markets.