Dubai

To set up a company becomes more popular in Dubai. It is the most populous city and also an emirate within the United Arab Emirates. Dubai’s popularity is unbroken, but it is advisable to get to know more about the whole state and its various emirates. It is worth to know about the country that it is the second largest economy among the Arab countries and the GDP has increased 231 times since 1971. This country is an excellent entry into the Middle East and African markets; its advanced infrastructure is available for various trading companies.

There is a total exemption for the companies established in Dubai, but in addition there are several special offshore zones, with a total of 38 such in the Emirates.

The most important features of the establishment of a Dubai company:

  • The company’s share capital can be subscribed in any currency
  • Either a shareholder or a director is sufficient
  • The total value of the shares should be paid and the share for presentation is not allowed

However there is no regulation concerning the capital that should be kept in a bank

  • One can set up a wholly foreign-owned company
  • The Dubai offshore companies are entitled to full tax and duty exemption
  • The company’s ban account can be of course in the United Arab emirates
  • An agent should be included to set up a company which is included in the official offshore zone list
  • Officially the company’s headquarters will be in the offshore zone
  • There is no need to travel to the target country to set up a company

There is no income tax in the United Arab Emirates. All emirates can levy taxes themselves, but none of them do so. The local banks are not taxed. Companies in Dubai do not pay corporation tax, except for foreign banks and oil companies. Private individuals who live there do not pay income tax, property taxes and tax on income.

The United Arab Emirates has become a thriving financial and business centre in the last decades. Taking into consideration the international standards, including the OECD’s tax policy, it provides opportunities for settlements and tax planning for foreigners. In order to maintain tax-free status, the taxpayers should be presented in the country at least once in every six month.