Dubai has experienced exponential growth in recent years thanks to commerce and travel, and this city continues to attract new residents with its economic and business opportunities. The oil industry is booming, investment ventures abound, and tourism drives overall economic growth. These are all positive factors for anyone interested in emigrating to Dubai, but entrepreneurs need the full picture to make an informed decision before they move their companies.
Operating a successful business in a new country is difficult to accomplish without guidance from local experts. Dr. Werner & Partners Services has unmatched expertise in company formation and relocation services in Dubai.
Dubai Advantages
Aside from being a wealthy and economically healthy city, there are numerous advantages to relocating your current business or starting a new company in Dubai. It is a major business, shipping, and commercial hub. You can use this interconnected environment to build your business, either from the ground up or after transferring your business from another country.
Tourism is a major source of funding, and what attracts visitors year after year is also of benefit to anyone considering a permanent move. The city’s architecture is unmatched elsewhere in the world, and dining and shopping opportunities are plentiful. If the impressive views and leisure activities aren’t enough to impact your decision, consider Dubai’s tax structure.
Historically, Dubai has imposed a 0% corporate tax rate. This tax-free model will continue through May 2023. Beginning in June 2023, a 9% tax will be levied for Dubai businesses. However, it is important to note that small businesses and start-up companies with an annual taxable income of less than 375,000 UAE dirhams will continue to benefit from no corporate tax. The new 9% tax rate will only apply to businesses with an income that exceeds that amount. In addition, Dubai currently has no property or income taxes for many residents.
Dubai Disadvantages
For business owners emigrating to Dubai from countries in the European Union, there will be a significant cultural and lifestyle adjustment. EU member countries offer many benefits that the United Arab Emirates does not, such as social security benefits and shared health care programs.
Additionally, anyone planning to emigrate to Dubai from a country that utilizes Western legal systems should be aware of the legal differences. Dubai’s Sharia law system imposes punishment on behavior that is often allowed in many other countries, including public displays of affection, cohabitation between unmarried partners, and using swear words in public. Religious aspects should also be considered, such as Dubai does not allow eating or drinking in public during Ramadan.
Establishing Your Business in Dubai
Conventional businesses must go through a series of processes and requirements to establish themselves in Dubai. These include:
- Identifying which of the six types of licenses is required based on the type of business
- Reserve and register the trade or company name
- Submit an application for initial approval
- Complete a memorandum of association, if necessary
- Obtain any required government approvals
For guidance with setting up your business in Dubai, contact Dr. Werner & Partners. We have the industry expertise and local knowledge you need, and we offer free consultations. Contact us: www.drwerner.com/en/contact/
