Offshore Company Setup in Dubai: Entrepreneurs from around the world are attracted towards UAE and they want to setup their business. Decades ago Emirates was one of the least developed countries in the world, but with shrewd management of its natural resources and aggressive growth policies to adopt industrialization to become powerhouse economy.
There’s barely any tax burden on the entrepreneur. There’s no income or corporation tax, and while 2018 will see the introduction of the VAT, at just 5% it will be much lower than most world trading centers. UAE wants foreign direct investment to grow to 5% of GNP according to UAE vision 2021.
Here’s how you can go for offshore company set up in Dubai and get in on the action remotely, without the disruption and stress of relocating.
- First, a decision: Assuming you’re not setting up a branch of an existing firm but creating a new venture, your firm will most likely be established as a Limited Liability Company (LLC). So if you know what your LLC will be – and will do – the first major decision is where to register it.
- Free zone vs mainland? Registering in a free zone or in offshore certainly provides some short-term advantages. But depending on your company’s activity, the mainland may offer more in the long term. Registering in a free zone can mean sacrificing a strategic location and even if you find one in an ideal spot, many of the UAE’s free zones set strict criteria on letting people in. Mainland-registered companies, on the other hand, can base themselves anywhere in the UAE.
- How much of my mainland company will I own? According to the foreign policy of 2015 you cannot own a company in UAE for more than 49% from outside UAE and the fact that free zone companies can be 100% foreign-owned is one reason why free zone setup seems appealing.
- The process: The right choice of local sponsor is vital. From the outset, it’s their responsibility to nail down the registration process. First, you need to register on the mainland. Then select a local sponsor and step three is applying for a license. Then you need to keep communication channels open with your sponsor as you get the paperwork in order. You’ll also need a Memorandum of Association, where company ownership details and sponsorship arrangements are outlined. The Dubai Department of Economic Development (DED) has made great strides in easing the administrative burden for mainland businesses but naming stumbles and paperwork aside, you can register with DED in as little as 90 minutes.
- Time, cost and next steps: Getting a business license in the UAE involves much less hassle than in some Middle East and North Africa (MENA) countries. The cost of the license varies, but it likely land somewhere between USD 1,000 and USD 6,000. So when your new LLC receives the license, you’re ready to open a corporate bank account and set up anywhere in the UAE mainland. From there, you get immediate access to a lucrative, high-caliber market from the comfort of your home.
- A professional director: A professional director is like a sponsor, but rather than being a figurehead or an administrative lightning rod, they can bring real operational value to your venture. They are provided as a service by many reputable UAE firms. They are a valued option for many remote entrepreneurs, and one of the ways you can retain peace of mind from afar that your business is in good hands.