Due to the present state of the UK economy, the government will need to come up with strategies to retrieve some of the stimulus sums that have been spent during the previous year. Potential tax hikes in the United Kingdom are being rumored, so 0% corporate and personal tax rates are an appealing choice for UK businesses moving to Dubai.
Dubai as a business destination for UK companies: The benefits
With more than 5000 companies that have set up a business, expanded and entrenched an entity in the UAE, you can move your UK business to Dubai and reap many benefits, namely:
- Internationally and in the Middle East, the country is the UK’s biggest export market. The country is also the United Kingdom’s fourth-biggest trading partner not part of the EU.
- 0% personal levy and corporate levy.
- An unprejudiced trade regime will draw capital UAE-wide
- The country is a key hub for re-export to other nations.
- The country is a gateway to other Gulf Cooperation Council countries, North Africa, Asia, and more.
- The typical language of doing business is English(The most prevalent language in the country).
- Entrenched infrastructure, firm political system, robust banking structure.
- In contrast to the UK’s economy, the UAE is recovering much quicker after the pandemic.
Moving Business to Dubai: What I Need to Know
A number of factors should be taken into account for your company’s present and future. It is suggested to consult a professional business consultant who can discuss your choices on the basis of:
- Budget: Can your business be moved to Dubai?
- Business activities: Is it feasible for you to conduct the necessary activities to operate your business in Dubai?
- Location: Are you in need of an office, warehousing, port & airport connectivity, and more?
- Visa necessities: Is it possible to get a visa for you, your family, and your team?
- Banking: Are you aware of your business license’s banking options?
- On-going support: Do you know your business obligations to stay compliant once your company setup is finished?
What Documents Must Be Provided to Setup My UK Company in Dubai?
The business setup process in Dubai entails numerous steps that many people in the UK have the slightest idea of. Engaging an expert business consultant who can handle the red tape associated with it, ensuring the process is seamless and you are able to focus on your business is crucial.
Here are the standard documentation requirements (among others):
- An elaborate business plan
- Finished new business setup application
- Copies of your business docs.
- Referral letter from the personal bank of every single shareholder( based on the variety of structures).
- Copies of UBO part-owner, director, GM passport and utility bill.
Below You, Will Find a Summary of the Business Setup Process
- Picking the trade name for your company seems straightforward? However, in the Emirates, you should make sure that the translation to Arabic is accurate and shouldn’t comprise any names of religious, government agencies, or other external entities.
- Picking your company activity: Choosing the appropriate company activities is a necessity for your company. According to the company type, supporting documents, namely experience or educational credentials, should be submitted by the authorities.
- Once drafting and verifying all the paperwork are done, filing forms are completed in English and Arabic and prepared for submission.
- Upon finishing the company setup, you will receive your trade license.
How Much Does it Cost For Company Formation in Dubai?
The comparatively low costs of running a business also contribute to the city’s popularity with entrepreneurs across the globe. The cost of a trade license depends on a lot of variables, but typically it will cost you between 15,000 and 25,000 dirhams. Still, this is a quite rough estimate. Dubai company formation charges differ based on the location you intend to set up if you take on-premises, the number of employees, and beyond. Costs of Dubai company formation is way too less when compared to Dubai mainland setup. Similarly, whether you choose to use a co-working facility instead of a permanent office, there is a good chance that you will save money on setup.
Legal Business Structures in Dubai
If you are a UK citizen interested in starting a business in Dubai, you need to determine what sort of business you need. A number of factors define this, such as the company’s nature, purpose and operational aspects, etc.
As the name implies, in this type of business entity, an individual owns and runs a legal entity. That individual will be in total charge of operations and profits, with a cent percent responsibility for loans or any other financial obligations.
One Person Company
A one-person company is a type of business entity in the ownership of a person or corporate body. What makes one person company distinctive from the sole proprietorship is that accountability is restricted to the shares owned by the owning entity.
Doctors, engineers, lawyers, and accountants make up this exclusive partnership.
Limited Liability Company
This type of legal business structure can have up to 50 stakeholders, and every single shareholder is responsible only for the share of the company that the shareholder owns.
Two or multiple people share ownership, under the general or limited partners structure.
It is possible to set up a business on the mainland or in a free zone in Dubai. Starting a business in Dubai, you might be thinking about what makes the mainland distinct from that of free zones.
Running a company on Dubai Mainland lets you do business both locally and internationally. The company formation process is fairly systematic. In addition, a business license can be obtained in a day or two.
For UK companies, a free zone business setup is as much as is appropriate and beneficial for new companies. A couple of the most notable Dubai free zones are:
- Dubai media city
- Jebel Ali FZA
- Dubai silicon oasis
- Dubai Airport FZA
However, the guidelines and schedule for business setup formalities might be different for each FZA since they are regulated by their own authorities.
Cost of Trade License in Dubai
Based on your business’s location, what you do, shareholders, employees, approvals, etc, the company setup cost in Dubai differs. Based on different factors, the charges for government & licensing authority will differ for every business. There can be a periodic discount or promotion for free zones/licensing authorities. But the choice which seems the most affordable isn’t always the best option. Some licensing authorities lack credibility with Emirates banks, making opening a corporate account hard. In the end, you want a company set up giving you the chance to own a company bank account and Emirates residency visa. It is suggested to consult a business consultant who can walk you through the right choices at hand.
Dubai Company Formation Services at GH International
Wondering How Can a Foreigner Start a Business in Dubai? Hire UAE Company Formation consultants at GH International! They will doesn’t just assist you to choose the best corporate structure and the right jurisdiction, but also guide you with the choices and ease the procedure! We handle it all, so you can focus on what you do best.