Many reasons for starting a company in Dubai!


Many people like the idea of setting up a business abroad. Be it for excitement, a change of scene or for commercial purposes. But why should you start a company in Dubai and not some other place? In this article we would like to show you why this international business hub is also the place to be for you and your business!

Optimisation of your fiscal structure

Dubai is largely a tax-free country, which makes it an attractive place for business. The emirate has no corporation tax, no income tax and no dividend tax. Therefore, when you choose to execute a part of your business activities from Dubai, you will enjoy tax-exempt gains. This is when you have an office in Dubai, here decisions are made, risks are incurred and activities are undertaken.

There is an exception to the rule: companies trading in oil & gas as well as companies who have banking as their core business, pay corporate taxes. It must be noted that this only applies when those companies act on the local UAE market.

Another advantage is the double taxation treaties agreements which the UAE has with almost fifty countries. Due to those agreements, double taxation is avoided which makes business in the UAE very profitable.

In addition, it is possible to distribute tax-exempted divided to the foreign holding company.

Strategic location

Dubai’s strategic position between Europe, Asia and Africa benefits regional traders as well as global business entrepreneurs.

Two-thirds of the world population lives within eight-hour flight time from Dubai. For one-third of the world population it’s within four hours. The combination of its strategic location and excellent infrastructure, led to the International Air Transport Association (IATA)’s announcement that Dubai is the most connected country in the world.

Strong economy

Besides its strategic location, Dubai’s strong economy is another great advantage for doing business. The economy has grown substantially since 1988, and today Dubai has become a major business centre with a very dynamic economy.

Since the 1980’s, the United Arab Emirates’ goals were to diminish the dependence on oil and stimulate private investments. Today, Dubai is only directly dependent for approximately 4% of its GDP on oil revenue.  This diversification towards a more knowledge- and service-based economy in Dubai,  has secured its position as a leading tourism, financial and business hub, as well as real estate player. It is expected that the economic growth and liberalisation will continue to increase demand in the coming years.  

Lastly, Dubai enjoys financial and monetary stability. The emirate has a well managed and well-capitalised banking system and the capital markets are regulated and based on advanced technologies.

Interested in doing business in Dubai or in the UAE and are you looking for assistance with your business setup? Contact us today! [email protected]

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More information coming soon.