Before we venture into the exciting world of company formation in Dubai, let us first look at the landscape of Dubai. Dubai is a wealthy emirate and city in the United Arab Emirates renowned for ultramodern architecture, luxury shopping and a dynamic nightlife scene. Burj Khalifa, the world’s tallest tower, dominates the skyline. At its peak, Burj al Arab stretches for nearly seven hundred meters above sea level. At its base lies Dubai Fountain, which houses electric lighting and jets choreographed to music on a nightly basis. At several key offshore islands just off shore is Atlantis, The Palm, an exclusive resort with water and animal parks.
A company formation in Dubai necessitates an adult resident visa (or an adult employment contract) from the United Kingdom. This requirement facilitates the registration of your company in Dubai with the Companies House of the Dubai Autodrome. Once registered, your company can commence operations as soon as the registration is completed. By law, all company directors must have an active residential address in the UK.
After company formation in Dubai, you are required to open an offshore business account. This is typically done by arranging an offshore bank account in a banking facility that is authorized by the Dubai government. Many companies offer their services to help you open an offshore account. You can expect to pay a service fee and charges for these services.
Once you have established an offshore business to set up in Dubai, you can enjoy the benefits of doing business in this country. Companies House has implemented a policy called the Dubai S.H. Regs that aims to harmonize the business activities of foreign companies in the country with those of domestic businesses. This policy makes it easier for company registration in Dubai.
Company formation in Dubai requires an application for a Business License that needs to be submitted to the Dubai ruler. The license must be renewed every two years and must be accompanied by an annual fee. In order to start doing business in the free zones of Dubai, you are required to open a UAE national office. You can choose an office either from the emirate or from the free zones.
Companies that want to conduct business internationally can benefit from the formation of an offshore company in Dubai. These companies can benefit from tax reductions, exemption on import duties and other related advantages. Another advantage is that the Companies House does not require that the company be registered in the name of a UAE national. It can conduct business under its own name. This is beneficial as you do not have to provide a UAE national’s personal guarantee.
If an individual decides to become a company owner, it is important to ensure that he pays the appropriate amount of income tax. Most people are unaware of the fact that companies are not required to pay income tax. Companies that have a turnover of more than $1 million annually are not required to pay income tax. Companies formation in Dubai that have a turnover less than this are only required to pay an insignificant amount of income tax. Companies are also exempt from paying inheritance tax.
Companies that are registered in Dubai can conduct all their business transactions through a foreign subsidiary. All transactions made between the parent company and its subsidiary in Dubai are settled using the Dubai banks and they use the foreign currency. Companies formation in Dubai allows free trade of goods in all the countries around the world. Companies have to pay only the local exchange rate.
Companies have to pay the appropriate registration fees. Companies formation in Dubai will require a person to open a vat business plan with the Dubai government. The business plan will state when the company will commence operation, the name of the company, and the registered office. The registered office should be at a place that is recognized by the banking authorities of all countries. This means that the company formation process cannot be moved from one country to another in the event that it requires a new bank account opening.
An individual can open a new bank account in Dubai after obtaining an existing bank account in another country. This is done by contacting the banking authorities of the countries to which one plans to transfer funds. Transferring money abroad can be a complicated process but it is a safe process as long as the money is transferred through certified Dubai banks. There is a risk of laundering when transferring funds to UAE, so it is imperative to use certified banks.
Company formation in Abu Dhabi has different forms and requirements than that of a company formation in Dubai. There are other rules associated with the formation of companies in Abu Dhabi. For example, it is not required to conduct meetings or conferences in the different forms of communication that are commonly used in Dubai. However, there are certain requirements that must be met if an individual wishes to establish a company in Abu Dhabi.
