For many Germans, becoming self-employed and setting up their own company is just a dream. And rightly so, because setting up a company involves immense costs right from the start, which are difficult to cover. Taxes in particular, which account for almost half of the profit generated, have to be paid to the state, so that after deducting fixed costs, there is not much left over for an entrepreneur at the end of the month. The solution to this problem is obvious: setting up a company in Dubai.
Dubai is one of the seven emirates of the United Arab Emirates (UAE) on the Persian Gulf. The rapid growth of the city of Dubai in recent decades is mainly due to the countless construction projects financed by private investors. As there have been grounds for criticism regarding building regulations in the past, Dubai has reacted swiftly and massively tightened the requirements for building projects to be approved. The idea behind this was to improve the protection and security of investors as well as the quality of construction projects. The result is architectural masterpieces that cannot be found anywhere else in the world and which ensure that almost 17 million tourists come to Dubai every year to be inspired by the city.
Dubai is known for its very liberal economic policy. The restrictions on economic and business transactions are hardly noticeable and environmental protection requirements only play a minor role. Even more attractive than this, however, is the tax relief that comes with emigrating to Dubai: Neither income tax nor corporation tax is levied in Dubai. A perfect basis for setting up a company abroad, among other things.
The UAE has a total of 7 emirates, and it doesn't matter in which of them you set up your company. For example, you can have a company in Dubai but live in Ras al Khaimah or vice versa. Both are possible. However, you should bear in mind that real estate in Dubai is somewhat more expensive than in other emirates.
Irrespective of this, you should make your company formation dependent on the sector in which you operate and, above all, where your business transactions will take place. Based on these criteria, you can also choose the right legal form for you. Here you can roughly distinguish between 3 types of company: Mainland, Freezone and Offshore.
A mainland company is comparable to a German GmbH. Setting up such a company is particularly advantageous if you want to sell both products and services inside and outside the UAE.
The Mainland company can be founded in two different ways: Through a license and/or through a limited liability company where you are the sole owner. There used to be a third option, where you needed an Emirati to set up the company. However, this regulation has been abolished and is now only used in the rarest of cases, such as in the oil industry.
There are a total of 45 free zones in the UAE. Therefore, if your primary business activity or customers are located abroad and therefore outside the UAE, setting up a free zone company is the right choice for you. Of course, in certain cases you are allowed to produce, store or deliver goods within the UAE as a free zone company. However, you are subject to certain restrictions that you must adhere to.
The offshore company is similar to the free zone company, but differs from it in the criterion that you only have to register the company itself in the UAE or Dubai, but you do not have to be on site, as is the case with the free zone company.
More and more influencers have recognized the huge potential behind Dubai and are increasingly migrating to the emirate to produce their content there. As this content production can be considered both a product and a service, a license must be applied for from the NMC (National Media Council).
Dubai is one of the countries in the world that explicitly promotes entrepreneurship. For this reason, the emirate has established numerous support programs to make it easier for entrepreneurs to gain a foothold in business in the UAE. One example of this is the Dubai Startup Hub. This is a cloud platform that supports the national startup ecosystem.
The Dubai Future Accelerator, on the other hand, gives young entrepreneurs the opportunity to try their hand at business and use the city of Dubai as a test run.
Contact us to discuss your individual case. We offer you detailed solutions that are perfectly tailored to your needs.
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