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Look at foreign shores for better dividends

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  • Look at foreign shores for better dividends
  • Sat 21 Jun 2014 | By : admin

There is a serious threat of tight markets when it comes to smaller industries in Asia. There are many companies that cover the entire market and hence make it very crowded for survival. The more crowded the market, the tougher it is for the players to survive. In such a scenario, it is ideal to look at better pastures for growth and better profits equally. One of the best places to head to for a new business formation is Dubai. The present market is growing with every passing day and gives you the opportunity to set up a good platform here. There are different business models and forms you need to understand first though.

The Free Zone Advantage

The first and obvious business platform is a free zone company formation. Here, you would have a give number of advantages in comparison to any other place around the globe. There are a number of businesses that start on this basis and grow into huge companies. The simplest advantage here is that you are allowed foreign investment without the need of a local support. In such a scenario, you would not need to have the influence or dependence on a local national for licensing and approval needs. This would reduce the costs that inflict your company in more than one way. Normally, when you plan on investing in a foreign country or industry, you are bound to have the need of a local sponsor for any enterprise here. This will obviously mean you having to give a share of your profits to the sponsor and also involving him the operations of the business. While the decision to involve him the operations can be negotiated upon, there is the obvious percentage share that would be recorded.

So, when you are in a free zone, you are not required to have a local national as a sponsor. You have 100% rights over the company enabling you to have zero risk in the proceedings. You can pick up stakes in other companies too and even purchase property or land. So, in a nutshell – you are given 100% rights into your business here.

What about the tax benefits?

If there is one thing that is widely famous across every business circle in the world, it is the benefit of taxation that Dubai free zones provide. Hence, you would not have to provide a dime as tax to the Government. Unlike the way other countries take up income tax and other, you would never have to pay anything here. This obviously gives you an instant profitability push. You save a good 30% on your business profits. At the same time, this benefit is given to every person working in your company too. So, there is an obvious advantage that people would want to work for you in comparison to a company located elsewhere. Forget about a shortage of talent in this case.

Licensing issues?

Getting the right license for your business is no easy task. There are different business models and service to choose from and most of them have different licensing requirements. For example, if you are part of a business that revolves around oil and petroleum – you would require a different license. If you are part of a company that involves with trading or selling, you would have to apply for a different license. Hence, understanding the licensing requirements of your company is a must. You can hire a certified and experienced consultant for this. They would give you deep insight on factors affecting your business from the licensing perspective as well as the marketing needs your company would have. This will reduce the set up time of your company. There are many clearances required from the Government in terms of approvals and bank details. All of this has to be done by the consultant and they would know the best way to do this.

Marketing your company

Apart from a Free zone company formation, understanding current market scenario and the way you need to market your company is a must. You can research about the current trends and how to get the most out of it. Never before has there been so much freedom in setting up a company in Dubai. Would you be able take all of the procedural requirements? Not that easily, hiring a consultant would be the best idea. You can decide on timing deadlines on each of the requirements and target weekly goals on every front.

With the boom in tourism and influx of investments in Dubai, the timing could not be better to invest in Dubai. That too with the huge need of tying up industries between Europe, Africa, North America and Asia! Dubai has the huge advantage of being placed perfectly as a connect between these four continents.

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