- March 27, 2017
- Posted by: DBS
- Category: Dubai Business Services
There are a multitude of benefits when it comes to business incorporation in Dubai.
This is especially convenient for company formation in Dubai for businesses that are looking to expand their borders.
Capital from businesses in Dubai is at an all time high hitting the eighty billion mark. This reflects a steady growth in business opportunities in Dubai and thus more opportunities for offshore company formation. The growth of businesses in Dubai has been quite significant in a relatively short period of time. When compared to five years ago, it is noted that a number of businesses in Dubai have grown by over one hundred percent and this also means the amount of revenue made has increased by over one hundred percent. The main pro services of businesses in Dubai include the oil industry and the gas industry.
However, business incorporation in Dubai has become steadily diversified over the years. Although the UAE is a major oil producer, this is slowly decreasing as the main source of revenue for the area. In Dubai alone, about twenty-five thousand barrels of the precious oil are produced on a daily basis.
This oil now contributes to only about six percent of the area’s gross economy. One of the booming businesses that has firmly taken root in Dubai and is increasingly becoming the most important is the tourism industry. Dubai has a decent ranking of thirty one when it comes to the Corruptions Perception Index. This ranking is a major boost to Dubai as a preferred travel destination as it reflects the good reputation that it has in terms of social development, jurisdiction as well as the country’s economic development.
Another of the pro services when it comes to business incorporation Dubai is engineering. This has taken the spotlight in Dubai over the recent years. The rise in engineering services can be attributed to the immense interest in architecture as well as the great need to come up with buildings that can accommodate the rising influx of tourists in the area. The importance of this is clearly exhibited by the fact that the most expensive hotel in the entire world is located in Dubai. Pro services in business incorporation Dubai are highly encouraged and promoted. Thus corporate structures that are supportive as well as incentives have been put in place to ensure the growth of these pro services. There are several other factors that make business incorporation Dubai conducive to most business men. For one, the energy in Dubai is low cost. In addition to this, Dubai has one of the world’s top notch communications infrastructures. Dubai regales all kinds of entrepreneurs who would like to start their businesses there and thus the country ensures that the set up services offered to individuals who are looking for company formation are of the highest quality.
One thing that one would have to keep in mind when it comes to offshore company formation in Dubai is that the tax laws are not the same everywhere. Dubai is one of the countries that make up the Emirates in the Middle East. When it comes to the United Arab Emirates, tax laws will vary from one emirate to the next. In Dubai, the law is quite clear when it comes to taxes. The law provides that tax should be charged to any individual who is chargeable. The entities being referred to as chargeable persons include corporations or people that are permanently situated in Dubai. These are businesses that are specialized in certain duties such as accounting, documents clearing Dubai, auditing services among other consulting services. It can also refer to businesses that provide accountants or auditors.
There are several other taxes that are not imposed in Dubai which would make it the best place to consider company formation. These excluded taxes include; corporate tax, value added tax, tax received from capital gain, personal income tax and withholding tax. However, there are a few companies that are exempt from these exclusions. Companies that deal with petrochemicals, oil companies and gas companies are expected to pay the above taxes. Even though one may find that there may be no personal taxes or corporate taxes charge, they may still have to cough up some smaller surcharges.
If your company formation will require you to import products into Dubai, you will need to ensure that you have acquired a trade license beforehand. In addition to this, all individuals who are looking to import goods into the country are liable to pay a duty of four percent. However, this duty is not chargeable to products for free zones such as medicines, food and construction materials. This does not apply to luxury items though. Luxury products such as alcohol and cigarettes are charged a duty of about one hundred and fifty percent.
Any company formation that is looking to have business incorporation Dubai shall have access to treaties of double taxation. These double taxation treaties are in place with over fifty countries. The countries included in this double taxation treaty are South Korea, Germany, China, India and so on. As aforementioned, tourism is one of the biggest money makers in the country. For that reason the government has injected ridiculous amounts of money into that sector to ensure that the business remains booming. The key tactic that is used to promote tourism in Dubai is the portrayal of the glamorous lifestyle that most people want to buy into and to experience.
Lastly, the infrastructure in Dubai is one of the best in the world. This is a great benefit for company formation or people who would like to get into business incorporation in Dubai. The options that are afforded to you as an entrepreneur in Dubai are limitless. In addition to this, you are guaranteed ease of conducting your business quite effectively. If you are contemplating business incorporation Dubai or offshore company formation, all you would have to do is set up a meeting with the hundreds of companies in Dubai that could offer you consulting services on how to go about it in the proper manner.