Dubai Business Registration: Starting Points
As anyone who has set up a business from scratch would know, the process is tiring and tedious to say the least.
Beyond the ordinary concerns of being unfamiliar with the legal and regulatory requirements, not having a semblance of an understanding regarding customs and traditions, and the way the social fabric of the country functions puts one at a disadvantage from the get-go, especially if the entity in question is a small organization or foreign individual.
The Mixed Bag
Of course, this by no means implies that these interests should be disposed off. As with any other locality, where the intention is to set up a business, there are unique pros and cons.
One can even argue that the many benefits and credits the government provides are well worth the hassle of placing a foot in the country, and enduring the entire process, no matter how much effort it takes.
The foremost advantage that puts Dubai on the map of foreigners is the tax facilities, which are one of the most attractive in the region.
Most of the laws and regulatory aspects implemented in the country have western origins, which means they enable the formation of a number of common business structures, with added options regarding the location, tied benefits and limitations, and shareholding composure.
Being Situated In The Free Zone
For Dubai offshore business registration in the free zone itself, most people will chose to set up either a company, or an offshore institution.
A free zone company is a business that is situated in one of the many designated areas across the outskirts of the city, usually meant to encourage activity in a certain industry or field.
Advantages posed by this kind of structure number in the several, including full foreign ownership (this means a local sponsor is not required), the ability to open a bank account in the country, no tax obligations, and the ability to use the set up to carry out international trade as well.
The offshore company on the other hand is meant to be transitory set up, for organizations and businesses that are not targeting the Dubai populace as customers or audience.
This type of structure has its own set of benefits, and usually employed by companies or individuals that need a tax relief mechanism. Offshore companies require no minimum share capital or a physical facility in the city.
Owing to the potential for abuse, regulations have been added to include the addition of a director, the maintenance of accounting records, an annual audit of the financial report published by the company, and general meetings.