n a historic turn of events, December 1971 marked a pivotal moment in the United Arab Emirates’ journey towards unity. At that time, the UAE transformed into a federation comprising six emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al-Quwain, and Fujairah. The unity and shared vision of these emirates paved the way for a brighter future.
The seventh emirate, Ras Al Khaimah, chose to join this burgeoning federation in 1972, further solidifying the bonds of brotherhood and cooperation among these diverse regions. This significant decision was a testament to the strength of the UAE’s collective spirit.
Dubai is one of the largest cities in the Middle East having multitude of opportunities to allow foreign investors to set up different forms of Organisation.
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Why to make Investment in Dubai?
First of all Dubai is a tax-free city, with no income or capital gain tax. Growth here has been expediential, having transformed from a tiny fishing village to a major trading hub in less than 30 years. There are many reasons why one must invest in Dubai; some of are as follows-
- It is a Growing Economy
- Dubai has developed as a Forex and Derivatives hub through initiatives of the Dubai Gold and Commodities Exchange. It is a regional hub for trade and investment of commodities such as gold and precious metals, diamonds and colored stones, energy, tea as well as pearls and fashion jewellery
- In the Expo 2020 event Dubai got the honor of hosting the World Expo in the year 2020. With the visitor number expected to reach 25 million, it will help to boost rental demand and deliver a strong ROI for investors
- The hospitality and tourism industry is accountable for about 18% of Dubai’s GDP. The Emirate has several attractions and events that promote tourism
- According to the Ease of Doing Business 2019 report, the UAE scored 11th rank globally and 1st rank regionally
Benefits of Company formation in Dubai-
Benefits of Company formation in Dubai includes but not limited to…
- No minimum capital investment required
- No currency restrictions
- No corporate tax
- 100 % Foreign Ownership Allowed (w.e.f June 1 ,2021)
- Ease of Compliance
- A wide range of license types and business activities permitted
- Easy availability of work visas
Company Structures in Dubai
- Company Limited by Shares
- Limited Liability Company (LLC)
- Limited Liability Partnership (LLP)
- Foreign Limited Liability Partnership
- DIFC Transferred Company
- JV/Branch Office
Business Opportunities in Dubai
- Construction Business
- Travel and Tourism Business
- Restaurant Business
- Event Management Business
- E-Commerce Business in Dubai
- Import and Export Business
- Freelancing Business
Things to Know Before Company Formation in Dubai
- Choosing the Right Structure is very important
- Different Ownership Options are Available to Expats
- Choose Office Space Option (Which includes Serviced office, Onshore Office, Free Zone Office)
- Obtain Tax Domicile Certificate (Tax Residency Certificate (TRS)) to take advantage of the double taxation avoidance signed between the foreign jurisdictions and the UAE
- Operating a business in the Dubai Mainland area requires a local sponsor to be mandatorily appointed. He will own Fifty-one percent ownership
- Business Strategy Consulting Helps
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Author Bio
Ras al Khaimah joined the federation on 10th February 1972 and not in 1971.