Over the last ten years, the nation of Dubai has emerged as one of the top places in the world to open a new business. Dubai is one of the seven United Arab Emirates, and the country has long been open to foreign business and investment. The global economic slowdown has negatively impacted many of the world's markets, but Dubai continues to be a top pick for investors the world over, due to its liberal economic policy. Here, you will learn some of the benefits of doing business in Dubai.
Perhaps the single biggest advantage in Dubai business is the country's very liberal tax system, which makes it a good place for a foreign company to set up a business. Dubai is located where East meets West, so its business environment, like its society, is a mixture of the two cultures. Dubai's strategic location has been a determining factor in its financial success.
Dubai is among the fastest-growing and cosmopolitan cities worldwide, and it offers opportunities similar to what is available in the United States and Europe, with the requirements of setting up a business are dependent on the field chosen. Despite the economic downturn, Dubai has continued to enjoy progress.
Foreign companies wishing to enter Dubai business are given a lot of choices. For instance, a foreign entity can have an LLC, or limited liability company, which will allow them to hold shares in a company and incorporate in the UAE. To have an LLC, the foreign entity needs a local agent, who needs a 51% or higher stake in the business.
Another option is to set up a licensed branch office. Dubai and the rest of the UAE requires that branch offices register through a local agent, who is responsible for licensing and registration, work permits, and all legal matters. Branch offices cannot import goods without their agent's assistance. Once a branch office has been set up, your company can sponsor staff, rent office space, and enter into contracts.
By far, the best option for a foreign company setting up business in Dubai is the use of the free zones. The UAE's free zones allow local and international companies to fully own their business, as well as to have a sole director and/or shareholder. Dubai's free zones are tax exempt, and once a company is part of the free zone, they can sponsor employees, offer work permits, and set up licensing. As of the time of this writing, there are more than ten thousand companies registered in the Emirates' free zones.
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