How to incorporate a company in Dubai? Thousands of people ask themselves this question every year. Be it because as a private person you want to live and work where others go on vacation or because you want to set up business there as an existing company and/or use the tax advantages of the country. The most important questions on this topic are answered below.
Dubai is a city of superlatives and offers another priceless advantage for private individuals and companies (special requirements): 100% tax exemption - there are currently no private taxes in Dubai.
A corporate tax was introduced in June 2023, but this only affects mainland companies. This means that companies in the UAE free zones can qualify for tax exemption, for which certain requirements must be met. In addition, it only applies to annual profits of more than AED 375,000 (approx. EUR 97,000), i.e. only profits above this exemption limit are taxed accordingly.
At the same time, salaries, office, telephone, etc. etc. can of course be claimed as expenses and have a corresponding effect on profits.
No, it is not mandatory to reside in the UAE to set up a company in Dubai. Depending on the type of company form and the respective license, there are different provisions. In principle, however, you do not need a place of residence in Dubai to set up a company.
This company form is intended for companies that want to use the tax advantages of Dubai or the UAE but do not plan to conduct business within the UAE.
Freezone companies offer many advantages:
In Dubai there are over 30 free zones (free trade zones) where foreign companies can settle accordingly. In principle, almost all Freezones offer the same activities and it is therefore advisable to pay attention to price/performance and the reputation of the Freezone.
The costs for founding a company in Dubai depend on the respective activity, the freezone and last but not least on the required visas.
If you do not need a residence visa, you should currently calculate around EUR 4,500 for founding a company.
Including a residence visa, you would currently have to reckon with around EUR 7,700 for the company including the costs for the visa.
The founding of the company itself usually takes only 5 to 7 days. In most cases, you do not have to be on site for the foundation itself, this can usually be done online. The entire process, including the residence visa, takes at best two to a maximum of three weeks. Here, however, paid fast services must be used by the immigration authorities.
EXAMPLE 1
You own several companies or assets in Europe or would like your new company in Dubai to become a shareholder in other companies in the future. But you don't want to move your residence to Dubai. You don't need a bank account either. The company serves the sole purpose of a holding company.
Company form: FreeZone company with 0 Visa
EXAMPLE 2
You run a marketing agency, an ECommerce store, etc. and with this company you mainly look after international customers. Since you can carry out your activities from anywhere, you want to relocate your company and possibly your residence to Dubai, but plan little or no customers in the UAE. A bank account is absolutely necessary.
Company form: FreeZone company with visa
EXAMPLE 3
You want to open a restaurant, beauty salon or any other service business in Dubai. Customers should be greeted on site in a shop or office. You also want to move to Dubai. A bank account is therefore of course absolutely necessary.
Company form: Mainland company with visa
EXAMPLE 4
You work in the financial industry, crypto or NFT sectors and accept foreign funds from others. You need comprehensive advice and a company account. As those activities are strictly regulated they require incorporation in designated freezones such as the DMCC, DIFC or ADGM.
Company form: Regulated FreeZone company with visa
