Business setup in Dubai is costly, as the country has high property prices and business-to-business transactions. However, business setup in Dubai does not come without any financial expenses. Below are some of the major financial expenses that a business will incur during its setup stage.
Business setup in Dubai freezone usually involves paying the customs and excise duties, which are imposed by the UAE government. Importers and exporters are required to pay for the export duties in addition to local fees levied by the Dubai authorities. Dubai free zones business setup costs are usually higher than in other nearby emirates. Business setup in Dubai includes submission of an annual report to the Dubai authorities, deposit of shares into the company’s offshore bank account, and compulsory annual health insurance for all the employees of the business.
Companies setup in Dubai may be from any country of the world. Some countries may require the business operators to have certain qualifications or experience in order to set up or expand their operation in the free zones of Dubai. An examination is conducted after the completion of the application. In order to have an easier time in applying for a license or registration, they can apply through a Dubai freezone Private Trading Enterprise (PTPE) or Flexi-eday Business Incubator (FBD). These companies provide assistance and guidance to new entrepreneurs who wish to open a business in Dubai. Each participant is given complete training and advice on how to set up a business.
The FBD and the PTPE are Dubai government sponsored organizations. All the documents are provided by the company to ensure that the business license or registration is obtained without problems. The PTPE is held for three years while the FBD is renewable for a five year period. If you wish to purchase a share in a company through a free zone company, it is necessary for you to hold a business license or registration. The Dubai stock exchange offers registration of companies through a PTPE or Flexi-eday Business Incubator.
There are many advantages of doing Company setup in Dubai and this is why there are several foreign investors who have set up a venture in Dubai. One advantage of doing business in Dubai is that tax rates are low or at least low compared to other parts of the World. Companies are only required to pay taxes if they use local workforce. Companies are also not required to pay taxes on any income that they make outside the emirate. Because of these low taxation rates, the businesses that operate from Dubai have more money left over after paying for local infrastructure facilities.
Another reason why companies do business in Dubai is because labor is cheap. In addition to the low tax rates, there are thousands of people working in Dubai who have jobs that are well paying. Because of the strong economy, unemployment rates are very low and companies are happy to hire locals to work for them. Foreign investors who have Dubai business setup can benefit from this aspect as well because local workforce is very well educated. There are also many business setup consultants who can help you out with setting up your new or existing company.
One good thing about establishing a business in Dubai is that there is no personal income or capital gains tax required when you pay employment tax to the relevant authorities. This is because the applicable rates are implemented by the Government of Dubai, which is a constituent part of the Dubai Civil Aviation Authority. One good thing about the free-trade zones is that they allow private entities to trade in all products that they want. You can set up a company to manufacture cars, oil, or even clothes; but if the product that you wish to trade in has a high margin for profit then you will not be allowed to trade in the freezone.
Once you are finished with the business setup in Dubai free zones, the next step will be to get your business license. To apply for a business license, you will need to submit an application to the Dubai Trade and Companies Department. Your application will be scrutinized very thoroughly and if it is found to be valid and legitimate, you will be granted a business license. The process will take a few months before you get your business license, so you can just relax and be assured that everything is going to be alright.
Dubai Business Advisors 