Did you know that UAE is the leading business hub in the Middle East? Offering a range of opportunities and benefits, registering a company in UAE is easy and profitable. With advantages such as strategic location and 100% foreign ownership if you register your company in the free zone, there is a lot to reap. It gets better; the region is a low-tax jurisdiction. For example, Dubai VAT goes as low as 5%, capital gains 0%, and unless the company falls under categories such as foreign banks and oil and gas, they aren’t subjected to corporate tax in UAE.
While registering your company in Dubai, you can opt for either of the three license categories namely;
- Professional license: The license is issued to companies delivering professional services such as craftsmen and artisans.
- Commercial license: This is issued to companies that intend to engage in any form of trading activities.
- Industrial license: Do you intend to manufacture products or engage in industrial activities? Then an industrial license is what you need to acquire as you register your company.
As you plan your next move to visit the UAE company register, it is worth noting that there are three primary company registration types. You can either choose the free zone, mainland, or offshore company registration. Each option has its pros and cons, with free zone company registration being the most straightforward model. In most cases, Mainland company registration, for instance, requires you to partner with a local service agent or UAE national. While such a feature might be challenging, nonetheless, the option opens up numerous opportunities.
Free Zone company registration is the most alluring option. Apart from enjoying tax-free income and no customs duty, among other benefits, the company registration process is relatively easy compared to mainland registration. As it allows 100% foreign ownership, you won’t have to worry about the Dubai residence visa to register the company. With a world-class business ecosystem and infrastructure, including the flexibility of choosing between fully-furnished or Flexi-Desk office space, Free Zones provides an extensive pool of business activities you can invest in.
While almost similar to Free Zone, Offshore company registration is quite distinct in regards to the governing laws, characteristics, and operations. Registered as International Business Company, Offshore businesses are legal entities that facilitates international trade, are not governed by UAE’s legal system and business jurisdictions, and not eligible to trade in the local market. What’s more, the company’s employees aren’t eligible for Dubai residence visa applications. While they offer a range of benefits such as profit repatriation and tax-saving as they fall out of Dubai VAT and customs, consideration such as opening a bank account in UAE can be quite challenging as the companies are subjected to strict compliance checks.
With lots of opportunities, especially with the technology advancements, investing in UAE is an excellent approach as you strive to diversify your portfolio. The best part is that you don’t have to worry about consideration, such as Dubai work visa to enter the market. You can register a Free Zone company or meet other friendly terms such as finding a local sponsor to match the 51% shareholding while registering a limited liability company.