Foreign investors and entrepreneurs are flocking to Dubai to benefit from exclusive economic benefits 100% foreign ownership, long-term residence visas, strategic location, ease of doing business, modern infrastructure etc. However, before setting up a new business in Dubai, you need to ensure that you have a robust strategy in hand. The procedures of business setup in Dubai can be complex for foreigners, and a strategy could make all the difference.
Developing an effective company formation strategy needs extensive experience and expertise. However, entrepreneurs who come to the UAE to set up a company will lack knowledge about the laws, regulations and local market conditions. The best company setup consultants in Dubai can help such investors to develop a solid strategy as they are experts in the country’s laws and regulations and can advise you on the recent reforms. Let’s analyse the major elements that must form the foundation of your winning strategy in Dubai:
Choice of the Right Business Location
This is one of the strategic decisions you ought to make while opening a company in the UAE. The benefit of 100% foreign ownership has been one of the USPs of the UAE free zones. However, nowadays, foreign entrepreneurs can open a mainland Limited Liability Company (LLC) in Dubai with 100% ownership. The previous requirement of having a UAE national sponsor holding 51% shares in the company has been scrapped for good even though 100% ownership is possible on the mainland in the UAE; just like free zones, choice of location still is an important part of the strategy while setting up the business in the UAE.
Also, the choice of the location affects the cost, i.e. to, rent or buy the office on the mainland. Single window services attract more investors in the free zones than in the mainland. Lastly, the presence of 4-plus free zones (some designated and some non-designated free zones as per VAT laws) makes it difficult for investors to choose the right location, i.e., the right free zone, to meet their business plans.
Use Appropriate Residency Options
Migrating to Dubai as a foreign investor has never been easier as the government has overhauled the residence visa system. Investors can now become residents in the UAE by applying for the UAE Golden Visa or Green Visa. These visas offer residency for up to 10 years with the option to renew upon expiry. Both Golden and Green Visa holders are allowed to sponsor their family members as well.
Investors, entrepreneurs, exceptional talents, scientists & professionals, outstanding students and graduates, humanitarian pioneers, and frontline heroes are eligible to apply for the ten-year Golden Visa. Freelancers/self-employed people, skilled employees, and investors/partners are eligible to apply for the five-year Green Visa. The advice of company formation consultants in Dubai will equip you to meet the relevant requirements.
Get Support to Ensure Regulatory Compliance
The introduction of regulations such as VAT, UBO, ESR and AML reflects the UAE’s unrelenting commitment to building a highly streamlined economy in line with global standards. You need to regularly assess whether your business falls within the scope of these regulations. If yes, you need to take the relevant actions to ensure regulatory compliance. Ensuring regulatory compliance is not a (DIY) task, and you may avail of business setup services in Dubai to navigate these requirements. Being on the right side of the law improves the image of your business among the authorities, banks and the public.
Develop an Exit Strategy
Your strategy for incorporating a company in Dubai will be incomplete if you fail to devise an exit plan. Your business plan will be weak and inefficient if you fail to include an exit strategy in it. Business owners must know when and how to close their business operations to avoid any kind of unforeseen events. You may consider liquidation as the best strategy to windup your business. Hire the best business setup company in Dubai for advice on exit strategies.
Develop a Strategy for UAE Corporate Tax
The UAE Corporate Tax has become effective from June 1st 2023. The UAE corporate tax will be levied at 9% for taxable income exceeding AED 375,000 and 0% for taxable income not exceeding AED 375,000. Companies incorporated in the UAE free zones (Free Zone Persons) are also subject to Corporate Tax. However, they can be eligible for 0% corporate by meeting certain conditions.
Entrepreneurs need to devise an effective corporate tax strategy with a focus on critical factors such as transfer pricing, tax group formation, permanent establishment, auditing of financial statements etc. Companies can also think about restructuring to make the best of corporate tax and reduce the tax burden. Business consultants offering tax services can help you with this.
Build the Right Strategy with Jitendra Business Consultants
Given the ever-evolving landscape of company setup in Dubai, foreign investors are advised to develop a robust strategy. You can seek the advice of business setup consultants in Dubai, such as Jitendra Business Consultants (JBC), to simplify the company formation process in UAE Mainland and free zones jurisdictions. They offer top business setup services in Dubai from A to Z. Moreover, JBC, being part of the Jitendra Consulting Group, can strengthen your compliance status by offering services related to UBO, ESR, AML and Corporate Tax advisory. Our services related to the best business setup in Dubai can help you open a company with full confidence.