Category:
Incorporation
Located in the Persian Gulf, the oil rich state of the United Arab Emirates is made up of seven emirates of which the most well developed is Dubai. In the last decade or so Dubai has gone from simply being a Middle Eastern port to one of the world's major business and financial hubs. And with its liberal and tolerant lifestyle, this city offers investors a unique opportunity to incorporate their businesses here.
One of the most important benefits of incorporating your business in Dubai is the fact that this city is strategically located in the Middle East, with easy access to not only key Middle Eastern and European markets, but to China, South Asia, Malaysia, Indonesia, the Philippines and other Asian markets as well. Dubai is a great place to set up a business in mainly because it has a strong and solid economy. The oil sector comprises a major portion of the country's GNP, is the stabilizing force of this tiny emirate. The reason why the popularity of Dubai is soaring these days is due to its ultramodern and sophisticated banking sector which provides a variety of services for its wealthy expatriate clientele. The banking system in Dubai is so private that it is now often compared to that of Switzerland.
Advantages and Disadvantages of Incorporations in Dubai
Located in the Persian Gulf, the oil rich state of the United Arab Emirates is made up of seven emirates of which the most well developed is Dubai. In the last decade or so Dubai has gone from simply being a Middle Eastern port to one of the world's major business and financial hubs. And with its liberal and tolerant lifestyle, this city offers investors a unique opportunity to incorporate their businesses here.
One of the most important benefits of incorporating your business in Dubai is the fact that this city is strategically located in the Middle East, with easy access to not only key Middle Eastern and European markets, but to China, South Asia, Malaysia, Indonesia, the Philippines and other Asian markets as well. Dubai is a great place to set up a business in mainly because it has a strong and solid economy. The oil sector comprises a major portion of the country's GNP, is the stabilizing force of this tiny emirate. The reason why the popularity of Dubai is soaring these days is due to its ultramodern and sophisticated banking sector which provides a variety of services for its wealthy expatriate clientele. The banking system in Dubai is so private that it is now often compared to that of Switzerland.
Some of the great many advantages of incorporations in Dubai are as follows.
- The most important and the biggest advantage that Dubai offers over any other country in the world and the reason why people are now flocking to this tiny city is that no taxes of any kind whatsoever are imposed on either onshore or offshore activities. Dubai isn't a just tax haven; it has no taxes at all! Even no tax department! It also does not impose any kind of taxes on sales, profits, incomes or even capital gains.
- Another advantage is that you do not need to file any accounts.
- Dubai has no taxation information exchange agreements with other countries.
- There are no public records kept of the directors and shareholders of a corporation.
- This city has a highly confidential and sophisticated banking system which ensures that all financial matters are private.
- Dubai also has a strong legislation in place that protects the confidentiality of investors in the country.
- Foreigners can own 100% of their companies. You do not need to start a business with a UAE national. All you have to do is incorporate a clause in the business's memorandum of association.
- And while there are no corporate or personal taxes, an import duty of 4% that is imposed.
- Foreigners have the freedom to send home their capital and income tax free.
- Businesses have full immunity from import duties.
- Also there are no currency restrictions in Dubai.
- Probably one of the most major disadvantages is that all foreign business should allocate a minimum of 51% equity to a UAE national in the interest of protecting national companies.
- A registered office must be maintained in Dubai.
- Every business must appoint a qualified auditor to examine and report the accounts of a corporation.
- No business can carry out trade with a UAE resident in the UAE or in the Jebel Ali Free Zone unless they have first obtained the relevant licenses to do so.
- Dubai is not an English common law jurisdiction.
- The registrar has the power to appoint inspectors to investigate the affairs of any offshore company or busienss.