Expanding UK Business in Dubai
UAE is maintaining its position ensuring opportunities to the enterprises of all sizes. The city has become home to many international companies.
With great Success in recognizing as world’s renowned development from sheer desert to a beautiful landscape and Eco friendly environment for businesses, UAE flamboyant and exotic profile is catching attention of new investors and tourists.
Divided under 7 emirates as Abudhabi, Dubai, Sharjah, Ajman, Umm al Quwain, Ras Al.Khaimah and Fujairah, Country manage well to balance the traditional value and welcoming diverse economic culture and trends.
Move Business UK to Dubai
UK companies looking to expand internationally have been considering the UAE as key destination. Having ranked third after china UAE topped high in MENA region scoring remarkable potential in the compatibility and connectivity escalating in the ease of doing business. First time in history Middle East is rewarded with great honor to host world expo. Popular as expo 2020 in UAE, platform will bring significance to industries that topped UK export to the UAE in 2017 such as:
- Electrical Machinery and Mechanical appliances.
- Precious Stones
- Motor Vehicles
- Optical/Cinematographic
- Medical equipment
In UK, UAE is considered as 13th largest export market with over 5000 UK Companies having their business in UAE. Though UAE is being recognized as nation of expats catering 195 nationalities but country is becoming extremely popular with BRITS. With British goods and services UAE is becoming a destination for keeping UK’s reputation in as valuable asset in the areas like healthcare and education.
Benefits of Moving Business /Expanding Business in UAE:
There are plenty of reasons why one should initiate in expanding UK business in Dubai.
1.Ease of Business Incorporation: Under federal legislation Investors & Startups can choose move their business in UAE under three business models. Entrepreneurs may decide to opt for any of these three models depending on their business plan and targeted market.
Mainland Incorporation: Mainland Company or a DED company is onshore companies licensed by Department of Economic Development of related emirate and are free allowed to do business in local market and anywhere in UAE. Under Mainland companies’ foreign ownership is generally limited to 49% where the remaining 51% will be held by UAE nationals. Governed by commercial companies law there are five types commercial entity:
•General Partnership
•Civil Company
•Limited Liability Company
•Public joint Stock Company
•Private Joint Stock Company
Free zone Incorporation: Free zone setups offer flexible structure and incorporated within designated jurisdiction of the emirate where the company is allowed to do business. Free Zones in UAE cater to four types of business entities i.e.
•Free Zone Establishment (FZE) which is formed with one shareholder (Individual or Company)
•Free Zone Company (FZCO) which is formed with minimum of two shareholders (Individual , company or both)
•Branch office of Local Company which allows UAE licensed company to open a representative office within the free zone.
•Branch office of a foreign company which allows an established foreign company to open representative office within free zone.
• 100% foreign ownership rights to the investors along with full repatriation of capital & profits under tax and customs benefits are covered under free zones.
Offshore Incorporation: Offshore companies in UAE offer unlimited possibilities for international entrepreneurs and investors.
•Tax Free Establishment (Exempted from all taxes)
•No Auditing and accounting requirements
•Strict Confidentiality where shareholders directors and secretaries cannot be seen in public register.
•Allows Asset Protection and Business Succession
•Can own assets, share, bonds etc
•Can do any trading or services business outside UAE
•100% foreign Ownerships
•Can Own Real estate Properties duly approved by UAE Authority.
•Can enjoy relaxed regulations with a Bank account.
2.Strong & Supportive Legal Frame Work: Any Commercial activities in UAE, One needs to comply with the federal laws including the :
•Commercial Companies Law
•Commercial Register Law
•Commercial Agencies Law
•Civil and commercial Codes
Each emirate follows their customized set of rules and regulation within its Jurisdiction.
3.Tax and Customs Benefits: From January 1, 2018 Government implemented value added tax (VAT) in the country at standard rate of 5%. There is no other direct personal or Income Tax in UAE. Goods destined for United Arab Emirates are subject to duty under GCC’s Common Customs law whereas goods destined for free trade zones are exempt from duty given that the goods are exported to other country. Goods can only be imported into UAE through a UAE registered company where goods must be relevant to the licensed business activity. There are no duties on exports.
4.UAE Visa Entry & Residency Benefits:
Smooth exposure to International Business Hub:
UAE being dynamic hub for worldwide businesses is an international gateway to introduce your business globally.
Visas/Entry in UAE:
Though the visas are easily available for business, tourists, transits and residency but being UK citizen you can get 30 Days Visa on arrival. You can secure your residency in UAE either through an employment or by establishing your own business through valid trade license.
Education & training centers:
There are Plenty of British schools already in UAE and further looking on to the continuous demand of British curriculum UAE government continues to up bring further more opportunities in collaboration with KHDA, ADEC and Ministry of Education (MOE) to develop:
• More British schools and universities in UAE.
• Skilled and qualified faculties
• Advanced and innovative educational resources and centers
• World-class Academic Platform
• High Standard and potential curriculum.
Not limited to above UK universities in Dubai have the highest proportions of postgraduate students.
Gateway to safeguard your assets:
UAE offers endless possibilities to foreign investors to safeguard their hard-earned assets and wealth under closely knitted formations under offshore which not only will maintain the complete confidentiality of the shareholder but also strongly backed by international banking to get financial legal and taxation benefits.
International Standards Healthcare:
Before securing a residency, it is mandatory for an expat to obtain an Insurance Card which allows you to have International Standards of Medical Facilities inside country. You can choose the plan which is best suited to you among varieties of insurance options available in market.
Considering Recent announcement in UK for the declaration of foreign assets before October 2018, it is in the best interest of UK Nationals to expand or move British Business in Dubai – UAE. British nationals especially will feel more like home in multicultural nation who benefits from world recognized infrastructure and tax free income.
At last it is always advisable to consult a professional advisory to understand all legalities and procedures to expand or move UK base business to Dubai. Complete Guide to open a branch office in uae of your business. Flyingcolour Business Setup Services is one of the leading consultants in the region with an exposure and expertise in segmenting complex business structures successfully.
This blog post is written by Ms. Shweta. Feel free to call our Business Adviser today for a quality consultation relating your queries. Please send inquiry to info[at]flyingcolour[dot]com or call +971 4 4542366.
