Why choose the UAE for relocation
The geopolitical and economic situation on the European continent is constantly deteriorating. Pressure on businesses from authorities, constant tax increases, complicated reporting requirements, and capital movement restrictions force entrepreneurs to seek jurisdictions that allow them to navigate difficult periods, preserve assets, and capture a share of the rapidly growing global market.
Many entrepreneurs are attracted to the following aspects of starting business in Dubai and the UAE:
Economic stability
The UAE’s economy is growing rapidly due to the influx of foreign capital. As a result, the exchange rates for the dollar and euro remain stable. The national currency, the dirham, has not changed in value for 20 years. Thanks to the reliable banking system, transactions with foreign counterparties are hassle-free.
Business safety
The UAE government provides rights and guarantees to companies that decide to relocate within the legal framework. It is a free trade zone where corruption is not tolerated. The state prioritizes business interests, protecting investments through a series of agreements and UAE’s membership in major international unions.
Payment-friendly market
Doing business in the UAE is easy and profitable. Tourist money flows in from Europe, Asia, and Africa. The minimum salary for locals without a diploma is $4,000, and increases to $10,000 after obtaining one. Celebrities from around the world come here to enjoy unique entertainment, expensive restaurants, and shopping in malls.
Tax benefits
In the UAE, there are no taxes on dividends, salaries, gifts, inheritance, or luxury items. This means that businesses can earn profits with a zero tax rate. Corporate profit tax and VAT here have the lowest rates in the world. Companies must pay taxes only after reaching an annual turnover of 375,000 AED (about $100,000). Freezone companies can operate at a 0% tax rate.
Geographical location
From the UAE, you can reach any point in the world thanks to six international airports. The largest of them is in Dubai, handling about 100 flights a day. The airport embodies the best modern technologies, unique design, functionality, and comfort. Citizens of 30 countries receive visas upon arrival here.
Effective visa system
Relocating a business to the UAE offers the opportunity to obtain tax residency status. The process of maintaining this status is simplified, allowing businesses to avoid additional charges, confirm income sources, register property without declaration, and freely manage assets domestically and abroad.
Other benefits of relocating a business to the UAE include:
- Tax benefits for small businesses with turnover under 3 million dirhams, including for foreign residents.
- Favorable conditions for cryptocurrency market development.
- Special opportunities in free economic zones (FEZ).
Main requirements and conditions for relocation
To successfully relocate a business to the UAE, you need to follow these steps:
- register a company and obtain a residency visa;
- acquire necessary licenses and permits;
- open a bank account;
- rent an office and housing.
Company registration
Foreigners can establish two types of companies in the UAE: a local (mainland) company or a freezone company. Let’s explore their advantages:
Mainland company
- Opening an office on any territory in the UAE.
- Loyal bank relationships, making it easy to open a bank account.
- Unlimited visas for employees.
- Ability to purchase real estate in the company’s name.
- Participation in large government tenders.
- Opportunity for business expansion: activity is allowed anywhere in the Emirates and other countries.
- Choice of one of 10 legal forms of companies.
Freezone company
- Minimal office requirements: virtual office or shared office space is sufficient.
- Tax benefits.
- Simplified customs procedures.
- Discounts on licenses for opening companies.
- No annual financial audit requirement.
- Ability for 100% ownership without local investors.
- No restrictions on capital repatriation.
- Choice of one of 3 legal forms of companies.
It may seem that if you decide to open a small beauty salon, it is easier to register the company in a free zone, while for scalable businesses, the mainland might be the better option. However, Free Economic Zones (FEZ) differ in their focus areas and there are also incentives available on the mainland for startups.
Due to various nuances when choosing your type of company, it’s best to consult with our specialists at Dynasty Business Adviser. They will assess your enterprise and advise which option would be more beneficial for you in the long run. Additionally, they can help select an appropriate free zone based on your business direction.
Licenses and permits
A license is a permit for engaging in commercial activities or providing services. It defines the legal status of a company, its area of operation, and provides guarantees that the enterprise is responsible for its actions. Conducting business in the Emirates without licenses and permits is illegal. Once licensed, a company has the right to engage only in those types of activities listed in it.
Types of licenses and permits in the Emirates:
- commercial (trading);
- professional;
- freelance;
- industrial;
- tourism-related;
- agricultural;
- craftsmanship.
To get a mainland license, approval from the Department of Economic Development is required. In freezones, managing authorities handle licensing.
To license a company in the UAE, you need to go through the following steps:
- Collect the documentation package: founding documents, passports and their copies, office lease contract, documents confirming qualifications (diplomas, certificates of education), business plan.
- Submit the license application, that should include: your license category, information about your activities, contact details, a list of attached documents, and information about the structure of the enterprise.
- Wait for the decision and notification of the physical license, which you will receive via email. In some cases, you may be asked to clarify information or provide additional documents after the initial review. Therefore, the procedure may take several weeks.
- Obtain the license after meeting all conditions: paying fees, signing a contract with the licensing authority, etc.
Experienced specialists at Dynasty Business Adviser will assist you in obtaining a license on the first try. On average, our clients successfully complete this stage within just two weeks:
Opening a bank account
For relocation to the UAE, a bank account is necessary. It allows transactions in various currencies, including the local one, without conversion. The Central Bank of the Emirates ensures that client financial operations information is not shared, even under international automatic data exchange frameworks. Banks in this country offer two types of accounts: for residents and non-residents.
Opening a bank account is simpler and easier for residents: they need to gather a package of documents and undergo procedures to verify their residential address and ensure they have no connections to criminal activities. Non-residents will have to take additional steps: place a large deposit in the bank account, provide information about business turnover exceeding $1 million, purchase real estate, obtain a guarantee from local partners, acquire insurance or invest a significant amount in a local business.
Opening a bank account in the UAE should be entrusted to professionals: if the procedure fails on the first attempt, forget about trying again. All subsequent attempts will be rejected.
Office rental
For company registration in the mainland zone, office rental is mandatory: the lease agreement is required when opening a bank account and obtaining a business license. However, when choosing a location in Free Economic Zones (FEZ), you can opt for Flexi desk, Smart office or Premium office.
For this reason, moving to Dubai for work is particularly popular among startups and freelancers, where this service is provided in several jurisdictions. This is similar to renting a post office box in a business center, where mail is received, a local phone is linked, and a conference room can be periodically booked for meetings.
What do you need to know for moving to the Emirates?
Legal Specifics
The Emirates is an Islamic state. Its legal system is based on Sharia law, a set of rules derived from the Holy Quran.Recently, the legal framework has been gradually supplemented with European legal norms, but it is still advisable to adapt your business model to local cultural specifics. Observing business etiquette is mandatory: Europeans should wear conservative, closed business attire, business cards should be translated into English/Arabic, and meetings should be scheduled by phone rather than email. Additionally, there are several restrictions to be aware of, such as:
- establishing businesses that involve interest;
- advertising alcohol and other harmful products;
- producing and selling pork products;
- investing money in gambling;
- importing narcotics;
- engaging in unfair competition.
Taxation in the UAE
The sources of tax law in the UAE are regulations approved in each emirate. However, it is important to know that the country does not have taxes on capital gains, dividends, or luxury. Nevertheless, certain rates do exist:
- VAT — from 0 to 5 %;
- corporate income tax from 0 to 9%;
- excise tax — from 50 to 100%.
In Free Economic Zones (FEZ), the above-mentioned taxes are at a 0% rate, but companies registered there can only operate within the FEZ and in other countries.
For more detailed information on local taxes, refer to our article: «“VAT in Dubai: What is it and what does it apply to?”»
Free Economic Zones (FEZ) – what they are and how to choose
Free Economic Zones, or FEZs, are regions within the country where business regulations and tax rates differ from those in the mainland. FEZs were specifically created to attract investments into the country. There are currently over 45 FEZs, most of which are in Dubai.Each FEZ has its list of permitted activities, for example:
- Dubai Multi Commodities Center (DMCC) — specializes in trade and providing services in energy, healthcare, education, and finance sectors.
- Sharjah Airport International Free Zone (SAIF) — ideal for trading jewelry.
- Hamriyah Free Zone (HAFZ) — intended for industry.
- Dubai Knowledge Park (DKP) — a hub for technology and educational services.
- Meydan — a zone for IT specialists.
We have detailed information on our services page about FEZs and how to choose the right one for your business.
How much does it cost to relocate a business to the UAE?
Since no two businesses are alike, it’s impossible to immediately answer how much it costs relocating to Dubai, Abu Dhabi, or Sharjah. The list of services and their costs can depend on factors such as:
- registration of a Mainland company or a Free Zone company;
- opening a personal or corporate bank account;
- the necessity of document legalization for obtaining licenses, etc.
However, we can guarantee responsible work for results, complete confidentiality, and the most affordable rates for services. These may include comprehensive tasks related to business relocation as well as individual ones such as notarizing documents or opening a bank account. To find out the cost, schedule a consultation, and we will discuss your situation and clarify the list of necessary steps for a successful relocation.
How do we assist with business relocation to the UAE?
We are a licensed agent and have successfully been opening and accompanying businesses in the UAE for 8 years, providing assistance in the following areas:
- Comprehensive services for relocating a company or family/employees: preparing and processing documents, obtaining a legal address, opening a bank account, obtaining visas, legal consultations for obtaining a residence permit.
- Choosing a Free Zone: choosing the best option for your business development.
- Business support: accounting and legal assistance.
Thanks to our high expertise in international and tax law, we cater to the individual needs of our clients, taking into account their preferences and financial constraints. If you wonder how to open a business in Dubai and seek business relocation companies with a qualified team that will fully meet your request and provide competent ongoing support, contact Dynasty Business Adviser.
Still wondering, “Can I move my company to Dubai?” With our help, you can relocate your business to one of the most promising countries for growth and development quickly and effortlessly.
