Doing business in Dubai
Dubai is one of the seven emirates of the United Arab Emirates (UAE). The UAE can be considered as a safe haven in the Middle East and attracts businesspeople and wealthy individuals from all over the world.
The United Arab Emirates is famous for its free zones: foreigners can own a company in such a free zone for the full 100% and do not need a local Emirati partner. There are more than 30 free zones available and the largest and fastest growing free zone is the Dubai Multi Commodities Centre (DMCC).
Dubai Multi Commodities Centre (DMCC)
Dubai Multi Commodities Centre is located in the centre of New Dubai and is close to the new International Airport, which will be one of the largest airports in the world. Dubai is a leading business destination and continues to attract international business.
Tax system DMCC Free Zone
Personal income tax rate: 0%;
Corporate income tax rate: 0%;
Withholding tax rate: 0%;
No currency restrictions and 100% full capital repatriation.
Additional features DMCC Free Zone
100% foreign business ownership is possible;
A Free Zone company can have one or multiple shareholders;
Strategic location on Sheikh Zayed Road, which is connecting Abu Dhabi and Dubai;
Close proximity to the airports of Dubai and Abu Dhabi;
Independent free zone authority;
Unique infrastructure;
Secure and regulated environment.
Requirements to do business in the DMCC Free Zone
Free zone companies need to have a physical presence in the free zone. In other words, it’s impossible to work from home without renting an office in the free trade zone. The company license is only issued after the authorities have inspected the premise in the free zones. The minimum requirement is to rent a flexi desk, which reduces the rent expense drastically. It’s not necessary to rent a complete office, a flexi desk solution is sufficient to start with.
Setting up a Free Zone Company is equal to obtaining UAE residence
The DMCC has become the ideal location to obtain residence as a shareholder of a DMCC company. UAE residence is issued after going through the application process and it is valid for a period of three years.
As a UAE resident, you’re not allowed to stay outside the UAE for more than six months. In other words, you have to be in the UAE at least twice a year. Otherwise you have to repeat the residence application process again.
Conclusion
The UAE has become a hub for international businesses which want to market and sell their products and services in the region. It has also become the ideal place for wealthy individuals who are looking for a suitable place with an international lifestyle, excellent flight connections and good employees available.