In the United Arab Emirates, entrepreneurship is well regarded. For this reason, everything is done to facilitate the establishment of companies in the Persian Gulf:
- The procedures are fast and accessible to foreigners / expatriates
- There is no corporate tax and no VAT
- In the United Arab Emirates, there are no social charges or income tax
It is therefore possible and wise for a foreigner to create his company in Dubai. For this, there are 3 solutions:
- The offshore company: it gives the possibility to the managers to create an activity of import-export, consulting or investment without having recourse to an Emirati. However, it is not possible for the manager to open offices, hire employees and work with local suppliers. No tax is due in case of offshore Dubai, but the latter can not operate directly in the country. It is thus mainly a question here of benefiting from the tax advantages of the country.
- The local/mainland company: it is accessible to foreigners provided that 51% minimum of the capital belongs to an Emirati. This type of company allows to set up any activity in the United Arab Emirates and gives the possibility to deal directly with individuals. Beware, if no tax is due, a customs duty of 5% is still retained in case of import. With this solution, it is possible to hire employees, but the local labor law prevails.
The free-zone company: this last solution is a good compromise between the offshore company and the local company. It is optimal for foreigners wishing to live and work in Dubai. It consists in opening and setting up a company in a free zone, and thus benefiting from all the tax advantages of the country.
