An astounding amount of foreign investors arrive in Dubai every year to take advantage of the many benefits provided by the emirate, such as 100 100% foreign ownership, visas for long-term stays as well as a secure environment for families, a strategic area, ease of doing commercial activities, modernized infrastructure. In the last year, Dubai’s Department of Economy and Tourism (DET) has granted 24,662 new business licenses during the first quarter of 2022. This means that foreign entrepreneurs are more and more drawn to the opportunities of setting businesses within Dubai despite the myriad of regulations, including Economic Substance Regulations, Ultimate Beneficial Owner, Anti-Money laundering Value Added Tax and Corporate Tax. These have been recently introduced to the UAE. Therefore, when you consider the changes that were enacted through the federal government a solid plan is essential for entrepreneurs to change the tide to their advantage and help ensure the continued growth of their business in Dubai.
The development of a successful business formation strategy requires a lot of knowledge and experience. But, those who travel to the UAE to start the company are likely to lack an understanding of the laws, regulations, and local marketplace conditions. Business setup experts in Dubai can assist investors to develop a sound plan of action since they are knowledgeable in the UAE’s laws and regulations, and will help you with the latest changes. Let’s take a look at the main elements that will constitute the foundation of your successful strategies in Dubai:
Study the Effects on The UAE Corporate Tax
The UAE Corporate Tax is effective on June 1st, 2023. You might be wondering what to do about it right now. This was the case in 2018, in the year that Value Added Tax (VAT) was introduced for the first time within the UAE. A lot of business owners, particularly entrepreneurs with small businesses, did not take the time to assess the potential effects tax on business and resulting in issues of non-compliance. It is proposed that UAE corporate tax is charged at 9% on tax-deductible income in excess of AED 375,000, and zero for tax-exempt income that is not more than AED 375,000.
Companies that are incorporated within those UAE Free Zones (Free Zone Persons) will also be subject to Corporate Tax but will continue to receive tax benefits when they satisfy all regulations and are of sufficient substance. It is essential to plan your corporate tax plan by taking into consideration aspects like exempted entities, income exempted from tax and transfer pricing rules as well as foreign tax credits provisions tax group formation, withholding tax , etc. It is possible to seek help from experts in company setup in Dubai to analyze the possible effects the corporate tax system has on your business.
Selecting the Best Business Location
This is among the key decisions to take when establishing an enterprise within the UAE. The advantages of having 100% foreign ownership is one of many USPs for these UAE Free Zones. Today, foreign investors are able to establish an mainland Limited Liability Company (LLC) in Dubai with 100 percent ownership. The old requirement of having an UAE national sponsor with 51% of the shares of the company was eliminated to make it easier. Although the possibility of 100% ownership exists in the mainland UAE as is the case with free zones, choosing the right place of business is still an important element of the plan when creating a company within the UAE. The location choice influences the price i.e. to lease or purchase the office in the mainland. Single window services are more attractive to investors to the free zones than the mainland. Additionally, the presence of over 40 Free zones (some designated and some not designated free zones in accordance with VAT laws) can make it challenging for investors to select the most suitable place i.e. choosing the most suitable free zone that will meet their business objectives.
Make use of the appropriate options for relocating.
The process of moving to Dubai as an investor from abroad is never easier since the government has revamped the residency visa system. Investors can now be residents of the UAE through a UAE Golden Visa as well as the Green Visa. The visas allow the possibility of residency of up to 10 years and the option of renewing after expiration. Each of the Golden, as well as Green Visa holders, is allowed to sponsor family members in addition.
Entrepreneurs, investors, outstanding talent, scientists and professionals exceptional students and graduates, human rights pioneers and heroes of the frontline are eligible to apply for the 10-year Golden Visa. Freelancers/self-employed people, skilled employees, and investors/partners are eligible to apply for the five-year Green Visa. The guidance of the company formation experts in Dubai can help you comply with the application needs.
Receive Support to Ensure Compliance
The introduction of rules like VAT, UBO, ESR, and AML illustrates the UAE’s constant determination to build an efficient economy that is in line with international standards. It is essential to check regularly whether your business is in the scope of these rules. If so, you have to take the necessary steps to ensure compliance with the regulations. Making sure that you are in compliance with regulatory requirements is not easy Do It Yourself (DIY) task and you could use business setup solutions in Dubai to help you meet these obligations. Being in compliance with the law of the law enhances your image with banks, the authorities as well as the public.
Make a list of an Exit Strategy
Your plan for incorporating the company in Dubai is not complete when you don’t come up with an exit strategy. Your business plan is sloppy and ineffective should you not include an exit strategy within it. Business owners need to be aware of when and how to shut down their businesses to prevent any unplanned situations. Consider liquidation as the best option to close down your company.
Develop the Right Strategy using BSD Prime Service Dubai
With the ever-changing landscape of registration for companies in Dubai, Foreign entrepreneurs are advised to devise an efficient plan before applying for a trade permit in Dubai. You can seek out the help of business setup specialists in Dubai like BSD Prime Service Dubai to facilitate the process of forming a company within the UAE Mainland and free zones jurisdictions. They provide bespoke services for business creation all the way from beginning to end. Furthermore, BSD Prime Service, as a part of Prime Service Consultancy can strengthen your compliance with the law by providing services in the areas of UBO, ESR, AML, and Corporate Tax advice. With the one-stop solution offered through Prime Service, you can begin your dream business in Dubai with confidence.
BSD Prime Service is a respected vat service provider that employs vat experts who are certified and located in Dubai, UAE. If you need vat consultants in Dubai, contact us at +97155 971 6033
No comments yet