Dubai

The Location:

Dubai is located on the southeast coast of the Persian Gulf, and is the capital of the Emirate of Dubai, which is one of the seven emirates within the United Arab Emirates (UAE). The official language is Arabic, although English is the most commonly spoken language in Dubai, and the currency is the Arab Emirates Dirham (AED). Dubai is a member of: the World Trade Organization (WTO); the General Agreement on Tariffs and Trade (GATT); the United Nations (UN), and the Arab League, among others. Dubai will begin implementing the standards of joint disclosures and the exchange of information for tax purposes set out by the G20 and the OECD in accordance with the Foreign Account Tax Compliance Act (FATCA) in 2018.

 

Key Benefits & Features of Company Formation:

  • There are two options for company formation in Dubai; Offshore Dubai LLC, and non-offshore companies (Resident Company).
  • Offshore Dubai LLCs are able to maintain offshore status through ‘Free Zones’ (FZ), which are business development areas that are completely tax free.
  • FZs have purpose-built business facilities specifically created for companies to hold an office in Dubai and carry out their business.
  • Some FZs are for specific types of businesses, all in one area.
  • Company does not need to have a physical presence in Dubai to be Offshore Dubai LLC.
  • Offshore Dubai LLC company can be fully foreign-owned.
  • Offshore Dubai LLC company can trade as normal.

 

Additional Information:

  • Offshore Dubai LLC cannot trade within the UAE.
  • Non-offshore companies can trade freely both within and outside of Dubai.
  • Some FZs do not permit business to be conducted outside of the FZ.
  • Some FZs will only permit companies to trade outside of Dubai.
  • Resident Companies require a minimum of 51% of company shares to be held by an UAE national.
  • Audited financial statements for Resident Companies need to be submitted to the Dubai Government annually.
  • Director and Shareholder details are made public.
  • Procedures must be followed diligently and correctly, including adherence to a specific set of strict guidelines and checks.