Nestled at the crossroads of the East and the West, Dubai stands as a beacon for entrepreneurs.
It has evolved into a significant economic and commercial hub, attracting businesses seeking development and strategic global positioning.
If you aspire to thrive in a business-friendly environment with cutting-edge infrastructure and avant-garde legal frameworks, this article is for you!
The United Arab Emirates has undeniably become a preferred destination for both startups and multinational corporations.
Euro-Accounting, operating under the guidance of Shabir Djakiodine from its offices in Paris, Geneva, London, Birmingham, Dublin, and Dubai, is an expert accounting firm offering a diverse range of services to businesses in each of the mentioned countries.
Our firm, deeply rooted in the financial world for several years, excels in its field. Mastering various accounting services, specialized tax advice, and company formation, we distinguish ourselves by providing advanced expertise to our clients in a dynamic European context.
Awards and Recognitions – Shabir Djakiodine Shabir Djakiodine is awarded the title of:
He is a finalist for titles such as:
Awards and Recognition – Euro-Accounting Euro-Accounting also receives awards such as:
Dubai, a member of the United Arab Emirates (UAE), has emerged as a global hub for business and commerce. Its diversified economy spans sectors from oil and gas to financial services, technology, and tourism.
The government of Dubai has implemented business-friendly policies, contributing to steady economic growth. Attractions for foreign investors include:
➢ Strategic Geographic Location: Dubai serves as a gateway between the East and the West, facilitating international trade.
➢ World-Class Infrastructure: Modern infrastructures, well-connected airports, and specialized free zones attract businesses from around the world.
➢ Political and Regulatory Stability: A stable political environment and transparent regulations enhance investor confidence.
➢ Attractive Tax Benefits: Free zones provide significant tax advantages.
➢ Skilled and Diverse Workforce: A multicultural and skilled workforce contributes to productivity and innovation.
➢ Quality of Life: Dubai offers an excellent quality of life with modern infrastructure, recreational facilities, and a safe environment.
Dubai stands out as an exceptionally attractive choice for foreign investors seeking to establish and grow their businesses.
When considering establishing a company in Dubai, careful evaluation of entity options is necessary. Dubai offers three main choices: Free Zone, Mainland, and Offshore. Each option comes with its set of regulations, advantages, and conditions.
Understanding the distinctions between these three entities is essential.
Firstly, the Free Zone:
Creating a company in a Dubai Free Zone involves a structured process. It includes obtaining an operating license, a residence visa in the UAE, and a corporate bank account. This meticulous setup generally takes between one and four weeks. Here are the key steps for a smooth registration process for establishing a company in Dubai:
Secondly, the Mainland:
Establishing a company in Dubai involves setting up a Mainland company licensed by the Department of Economic Development (DED) in the respective Emirate of the UAE. Mainland companies offer numerous advantages, including 100% ownership, location flexibility, a wide scope of activities, and access to lucrative government contracts.
Thirdly the Offshore Company:
Establishing an offshore company in Dubai is an indispensable choice for businesses seeking tax efficiency, confidentiality, asset protection, and global accessibility. An offshore company is essentially a legal entity operating outside its original jurisdiction, offering a range of advantages.
The process begins with selecting a suitable offshore jurisdiction, each with unique features meeting various business needs.
It’s crucial to choose an appropriate company name for the Dubai company formation, adhering to specific guidelines on legal identity.
This includes incorporating terms like “Limited” or “Ltd” in the company name to signify its offshore nature.
Business Setup Process in Dubai:
Euro Accounting supports you through these administrative procedures, streamlining the process and ensuring full compliance.
Main Taxes in Dubai:
For individual taxes:
For corporate and professional activities:
The only applicable tax currently is a 5% VAT, applicable when relevant on invoices issued to the UAE.
There is a planned introduction of a Corporate Income Tax starting January 2024 (with the first tax declaration due in September 2025) at a rate of 9% if your annual profit exceeds AED 375,000. There is also a tax exemption if the annual turnover is less than AED 3 million until 2026. Received and distributed dividends, as well as realized capital gains, remain untaxed.
Customs duties for imported goods into the UAE (outside of Free Zones) are at 5%.
Required Documents:
To open a business bank account in Dubai and the United Arab Emirates, specific documents are essential:
Banks may request additional documents such as contracts, invoices, and reference letters. Due diligence is crucial, as banks need to comply with Know Your Customer (KYC) rules and Anti-Money Laundering (AML) checks.
Impact on Free Zones and Business Types:
Some banks may hesitate to open accounts for companies located in specific jurisdictions or engaging in particular commercial activities.
Adherence to regulations, business facilities, residency, and establishing a relationship with bankers are factors influencing the account approval process.
Here are some examples:
NAME | TYPE | Remote Opening | Requirements | Deposit | Opening Time |
Mashreq Bank | Traditional Local Bank | No | Residence Visa and Emirates ID required + tenancy contract or Ejari (office lease) | AED 50 000 | 1 month |
Emirates NBD | Traditional Local Bank | No | Residence Visa and Emirates ID required + utility bill in the UAE + leasing a private office for trading license | AED 200 000 | 1 month |
RAK Bank | Traditional Local Bank | No | Residence Visa and Emirates ID required + tenancy contract* or Ejari (office lease) | AED 25 000 | 3 weeks |
Mashreq NeoBiz | Online Local Bank – subsidiary of a traditional bank | No | Residence Visa and Emirates ID required + utility bill in the UAE or leasing a private office | No minimum | 3 weeks |
WIO | Online Local Bank | Yes | Residence Visa and Emirates ID required + tenancy contract* or Ejari (office lease) | No minimum | 1 week |
CurrenXie | Online Foreign Bank | Yes | No specific conditions | No minimum | 1 week |
Payoneer | Online Foreign Bank | Yes | No specific conditions | No minimum | 1 week |
Dubai, strategically positioned at the global crossroads, undoubtedly stands as an enticing hub for entrepreneurs seeking worldwide strategic expansion.
Euro-Accounting, already recognized and awarded in its field, emerges as a key ally by providing tailor-made financial solutions beyond borders. The various entity options, including Free Zones, Mainland, and Offshore companies, demand careful consideration, each accompanied by distinct regulations impacting ownership and operational freedom.
The legal procedures involved in establishing a company in Dubai, ranging from choosing structures to registering trade names, carry paramount significance. Adhering to Dubai’s legal framework ensures sustainable business operations.
In addition to company formation procedures, networking and marketing play vital roles in ensuring business success and longevity. Effective strategies, such as participating in events and leveraging online platforms, serve as catalysts for continuous growth.
In conclusion, creating a company in Dubai is an exciting adventure full of opportunities. With Euro-Accounting’s expertise and strategic planning, entrepreneurs can successfully navigate this dynamic market and pave the way for prosperity in the heart of the Middle East.
Website: www.euro-accounting.com
Email: UAE@euro-accounting.com
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