- November 2, 2020
- Posted by: DBS Editorial Team
- Category: Business Setup in UAE
Start a Business in Dubai
Are you dreaming of an expat life by starting a business in Dubai? Or are you already an expat employed in Dubai willing to start your own company? If yes! You are not alone!
Dubai is one of the most popular expat destinations offering businesses multiple commercial opportunities and lower tax rates. This means your investment can go way beyond if you start your business in Dubai or anywhere across the UAE. Nevertheless, moving to a foreign country can be an exciting prospect, but the formalities involved in starting your own business in Dubai as an expat must be well articulated.
As an Expat: 6 Important Things you Need to Know
So, before you make your move, do your research, consult an expert and know what to expect. To get started, keep reading to learn the most important things you need to know while starting a company as an expat in Dubai.
1. Company Registration
Company registration in Dubai has several things associated that you as an expat must analyze beforehand. There are three major types of Company Registration in Dubai – those are Mainland, Free Zone, and Offshore Company Registration. Depending on the type of business activity and your preferred business jurisdiction you can make the decision or rather talk to a business setup consultant to make the right decision.
2. Legal Business Structure
In Dubai Mainland, there are several legal business structures, while the most preferred legal structure by those wishing to conduct commercial activities in Dubai is the Limited Liability Company (LLC) and is the commonly used commercial entity to start their business in Dubai. This is a private company and its shares are not offered to the public.
3. Business Ownership in Dubai
A Dubai free zone company offers expat investors to have 100% ownership of the company. Likewise, a Dubai mainland company offers 100% ownership for professional businesses, but a trading company limits expats to own up to 49% of the company, while the other 51% is owned by a UAE local. Nevertheless, you can still enjoy 100% operational ownership to find out more speak to a business setup consultant.
4. Taxation in Dubai
There are no taxes levied by the Federal Government on the income of expats or the wealth of expats companies. However, since January 1, 2018 VAT is applied at 5% on most goods and services, with some goods and services subject to a 0% rate or exempt. Certain designated zones (FTZ) are treated outside UAE territory with certain goods movements not subject to UAE VAT, however, services in FTZ will be subject to UAE VAT.
Also, as an expat you must know that the mandatory VAT registration is Dh375,000 ($102,075) and voluntary registration from Dh187,500 ($51,037.5), with VAT grouping allowed. Businesses are required to maintain books such as tax invoices and monthly VAT returns for large tax payers and quarterly for others.
5. Import Export Costs
Importing and exporting business in Dubai is one of the most profitable. However, you must know precisely what costs are involved for the type of goods you are planning to import and export in Dubai. Dubai offers a lot of tax conveniences but it is important to understand that various taxes are involved while importing and exporting from a certain country into Dubai. Talking guidance from a business setup expert is the right way to go about it!
6. Employed Expats
There are several employed expats who are seeking an additional source of income or dreaming about starting their own dream venture. However, employed expats wishing to start their own business must firstly obtain NOC – a non-objection certificate from the employer of the company they are currently employed.
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- Top Reasons you should start your business in Dubai
BOOK A FREE CONSULTATION
Still, have questions? Speak to a DBS business setup consultant today! We are the pioneers in business setup services in Dubai. With years of experience and expertise, we are known to be the best business setup company in Dubai and across the UAE.
To experience it yourself book a free consultation with our experts on company formation and legalities involved with the business setup. Simply follow the link to book a free consultation https://www.dubaibusinessservices.com/contact-us/