What companies are in Dubai
For starters, Dubai is one of the few places on Earth where starting a business is a tedious task. According to the World Bank’s Survey, Dubai is ranked 33rd of the easiest places to do business — considering its low rankings, we can safely say that starting a business in the city is going to be very hard, especially if it’s your first time.
This is mostly attributed to the government bureaucracy that places stringent measures to qualify for a business standing in the city. If you’re aiming to put one up in the city then here are some legal facts and terms you need to acquaint yourself with before you get started.
The best business in Dubai
There are 2 categories of business you can set up in Dubai Free Zones, namely:
Free Zone Company – are business that 100% owned by the person who set it up. You don’t require a sponsor or an agent to act as liaison to manage the venture. There is no restriction tying you down.
Dubai Free Zones Benefits:
- 100% Ownership
- Can be formed by only one individual
- You can open bank account in Dubai
- 100% Secrecy maintained
- 0% Tax
- Less Renewal Charges
- Can be liquidated anytime
- You can do international business
- Can do multiple activities
- Can hold Properties
Offshore Company – this type of Dubai company registration refers to a business operating outside its boundaries. Example, a business in Switzerland opens up a similar enterprise in UAE.
Dubai Offshore Company Benefits
The offshore possibility has basically been set up to cater for companies who need to have a regional “tax relief-invoicing-facility” – There is no minimum capital required and also no need to set up an actual office facility. The off-shore regulations have been issued according to new international standards and companies will have to register minimum one director per company, keep financial records and issue an annual financial report audited by a professional auditing company approved by the free zone. Each company must hold annual general meetings (possible also by proxy) and in short perform and act as a normal company.
The company regulations have been made out in strict conformity with new anti-money laundering measurements. Local companies allowed to deal with:
- Legal consultants, accountants, management companies etc carrying on business within the UAE,
- Any bank in the UAE for the purpose of conducting its routine operational transactions.
- If an offshore company wishes to conduct trade or other business in the zone or elsewhere in the UAE, it must obtain the appropriate licence to conduct the trade or other business activity from the competent authorities.
Capital: No minimum required, however a minimum of AED 10,000 (US$2,700) is recommended to begin with.