Company registration in Dubai in 2021
Registering a company in Dubai in 2021 has many advantages - the state has a favorable tax climate and high level of confidentiality; the political situation is stable as well. The economy is growing rapidly, and the jurisdiction is favorably located.
Taxation in Dubai
The state has signed over 100 agreements to avoid double taxation. No levies are required on personal income and capital. The rate of tax on rent in Dubai is 5%. When disposing of real estate, the tax is 2%.
In this emirate, there is no income tax. Charges are levied on the profits of international banks.
The rate of VAT is 5%. This fee does not apply to the sector of health and education, petroleum products, and social services. Residential real estate sectors are also exempt from fees with some exceptions. For more details on what taxes will be required when opening a company in Dubai in 2021, please contact our experts at IT-OFFSHORE.
The main advantages of opening a company
It is beneficial to open a company in Dubai because the jurisdiction is geographically advantageous. The country is financially stable, and the economy tends to grow. The level of security is high; the legal system is among the most developed ones in the world.
Another important advantage is the infrastructure. There are numerous road networks and ports, as well as airports for international business activities. The climate for working with investments is favorable, as the government supports such activities.
The registration process is relatively quick. There are a large number of free trade zones. When creating a firm, you can get a residence permit and exemption from paying a corporate fee.
Types of companies and peculiarities of registration
Foreign entrepreneurs can choose one of several common legal forms for conducting business. It is possible to create an LLC, an offshore company or business in a free zone, a joint-stock company, a branch, and a joint company.
Before establishment, it is required to draw up a unique name, as well as execute and notarize Memorandum and Articles of Association. It is necessary to get a VAT number, to submit the form for the registration of the license.
What documents to prepare:
- Application for license;
- Information about the applicant;
- Data on the business development plan;
- Information from passport of partners;
- Extracts from the bank.
Documents need to be translated into Arabic. To open an account for a company in Dubai, license information, certificate of incorporation, passports of shareholders, information on prospective customers and suppliers, proof of address, corporate documentation, and bank statements are required. Other documents and additional information may be requested by the financial institution.