How Could You Start Your German Business in Dubai? After last year’s survey, Dubai came out to have the friendliest environment for foreign entrepreneurs and investors. Its government offers a number of different incentives and perks to foreign investors.
This not only helps the city uplift its overall GDP but also provides opportunities for new business owners. For instance, UAE has a 0% tax rate on both personal and corporate income. This increases profit rates drastically for a lot of business owners. Other perks include a long-term UAE visa.
With the right guidance and knowledge, getting your company set up in Dubai from Germany can be a fruitful decision. If you have been contemplating the idea, this blog has all the information you need to make a suitable decision.
Can You Start A Business In Dubai As A Non-Resident?
To start with the basics, the first question that arises is if you are allowed to trade in Dubai if you are a non-resident. Fortunately, this is quite possible. However, you still have to abide by certain specific conditions. The conditions take into factor your nationality, the type of business you run, your country of tax residence, etc.
In certain cases, for instance, investing in a mainland business setup, you might have to find a local sponsor. The sponsor should have a 51% stake in the company. Despite the ownership, they will not have a say in business operations and will get a pre-agreed fee for the service.
What Are Some Types Of Business Licenses?
In Dubai, you have to decide between two types of business licenses. More common for non-resident business owners, free zone licenses are a great way to start your business here. To promote foreign investments, the government offers several perks for free zone companies. Some common ones include zero restrictions on currency, 0% corporate tax, 100% customs tax exemption, etc.
Steps to Starting Your Business as a Non-Resident in Dubai
The entire process of shifting your business from Germany to Dubai is not easy. Without knowing the right steps to successfully do so, you might find it confusing. To help with that, here mentioned are the five steps you should follow to start your business in Dubai.
Work With a Professional
When setting up in Dubai, there are a few admin tasks one needs to take care of, especially for a non-resident. For a layman, this might be unclear or hard to understand. This is when a local expert can help you. They will ensure you have all the required documents before entering your application.
Carefully Select the Business Activities
What kind of business activities you will take part in can significantly impact your license type? For instance, if it is under manufacturing or the industrial sector, you will need an industrial license. On the other hand, for commercial sector companies, you need a commercial license. Knowing what your business entails is important.
Mainland or Free Zone
It is best you consult with a professional to understand which zone will be most profitable for your company. Both the mainland and the free zone have their respective advantages. What suits your business solely depends on the type of business you run and other individual circumstances.
Name Your Company
Naming your company in Dubai is a bit trickier. There are certain naming conventions you have to adhere to. For starters, avoid offensive language, well-known names of other organisations, and abbreviations, especially if it is after your name. Once done, register it before you put in your business application.
Apply For the License
The final step is to submit your trade license application. An important thing to keep in mind here is ensuring you submit your application to the relevant body. For instance, if you are setting your business up on the mainland, the Dubai Department of Economic Development is your relevant body. For a free zone company, you can apply to the managing authority directly.
What Documents Do You Need For Your Application?
Dubai is very strict with the documents you submit for any procedure. This is why it is best to recheck every piece of documentation before submitting your application. For both the mainland and free zone, you are required to provide the following:
- Articles of incorporation
- A finished application form
- Description of intended business activities
- Shareholder’s passport copies
Now that you know what you have to do to shift your business from Germany and start your trade in Dubai don’t delay. Get hold of a reputable and reliable agency like Business Setup Dubai and grow your business. They are well-experienced and can surely assist and guide you in the right direction.