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Incorporating in Dubai - The Benefits of a Dubai Company

By Lawrence Smith

Summary: If properly structured, a Dubai incorporated company can legitimately enjoy a wide variety of benefits, which is the main reason why it has attracted almost 200 of the global Fortune 500 companies. Lawrence Smith explains.

Incorporating in Dubai - The Benefits of a Dubai Company

Dubai is the 3rd largest re-export centre in the world, and the largest state of the seven United Arab Emirates. Located on the Arabian Peninsula between Europe, Asia and Africa, its strategic location attracts roughly 5 million investors and tourists per year.

Dubai's economy is comparatively flourishing in the wake of the global recession, making it an opportune time for investors and entrepreneurs to buy into its rebounding economy. Incorporating a company in Dubai is a reliable way to invest abroad and conduct international business because of the emirates excellent international reputation as an investment and trading jurisdiction.

If properly structured, a Dubai incorporated company can legitimately enjoy a wide variety of benefits, which is the main reason why it has attracted almost 200 of the global Fortune 500 companies.

Advantages of Dubai company formation include:

  • 100% foreign ownership
  • Cost-efficiency
  • Modern infrastructure
  • World-class privileges
  • 100% foreign ownership
International investors are capable of owning 100% of their Dubai company, if incorporating in a UAE free zone. Free zones give business owners and investors access to ready-made offices, factories and warehouses with simple start-up and licensing procedures. It is recommended to procure the services of a reputable consultancy for the incorporation of a Dubai company, to ensure 100% ownership under Dubai's complex company law.

Cost-efficiency

A properly structured Dubai Company is not liable for paying income or corporate tax. There are no trade barrier quotas or foreign exchange controls. All profits may be repatriated. Moreover, investors have access to government-subsidized low cost energy sources, allowing this form of offshore company formation to be even more affordable. While Dubai company formation still involves a minimum capital requirement, depending on the size, nature and goals of the business, with oil companies being the mostly costly capital investment. Thus, it is often advantageous for small and medium enterprises to incorporate in Dubai, when it would be costlier in jurisdictions requiring a minimum capital investment to incorporate.

Modern infrastructure

Incorporation in Dubai enjoys access to some of the most advanced infrastructure in the world. Investors will find critical support in the form of government-invested infrastructure, such as in telecommunications, airports, roads and ports. The excellent communication infrastructure can be very advantageous when pursuing international trade through Dubai.

World-class benefits

Dubai is also a safe city with a low crime-rate. It has a fair and stable judicial system. There are more than 200 nationalities in Dubai, and it is constantly growing more cosmopolitan every year.

Due to unique and efficient facilities, entrepreneurs and investors are able to operate and conduct their businesses with confidence. Each free zone is conveniently facilitated with centers, buildings, expertise and practices that will meet the nature of your business needs. With such economic, social and political benefits, Dubai is the fastest growing city in the world and is known as a "gateway for regional opportunity". Consider incorporating your company in Dubai and experience the benefits it offers.

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About the Author

Lawrence is a copywriter / contributor at Healy Consultants. Healy Consultants assists international clients with offshore company formation, corporate bank account opening and other corporate advisory services. Headquartered in Singapore, our firm has a comprehensive understanding of legitimate, tax efficient financial structures. Our consultants have extensive knowledge and experience of company registration in Asia and other international jurisdictions.

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First Published: Sep 01, 2011

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