A Comprehensive Guide to Company Formation in Dubai: Benefits for UK Investors

Businesses in the UK are struggling to squeeze out profits from their net earnings, because of this one thing. That’s the high corporate and personal tax rates in the UK. And if we think they can get rid of this problem by increasing their clientele or selling more products, then the issue arises around managing a bigger team for offering products and services to more people. 

In both conditions, the situation remains the same. 

That’s when the idea of relocating your business comes. But where can we relocate? Well, there are a lot of options to form your business, however, Dubai is the right option for you. 

Dubai free zone business setup?

Why & how can we do it? If these questions revolve around your head, then you are at the right place. As here we are going to discuss everything about company formation in Dubai mainland along with its benefits for UK investors. 

Why Choose Dubai for Company Formation? 

High corporate and personal tax rates is not the only headache of business owners in the UK, but there are many more such reasons for them to set up their business in Dubai. Some of those reasons to choose Dubai for company formation are as follows: 

• Regulatory system burden: 

In the UK the business owners have to face the burden of regulatory systems for their businesses, as there are a lot of complex compliance requirements. However, on the other hand with Dubai in its free zones, business owners from the UK can take advantage of a more streamlined regulatory framework. 

• Business operation & living expenses: 

If we look at the cost of living and doing a business in different cities of the UK such as London and more are high. It’s not like a single factor is on the higher side, but every aspect such as rent, food, and operational costs everything is on the higher side. And it becomes another reason to set up your business in the Dubai free zone, as Dubai offers you comparatively lesser expenses. 

• Labor challenges: 

There are a lot of labor and skills shortage issues in the UK market, which makes it challenging for UK business owners to run their business efficiently. While Dubai has a more versatile and filled international labor market, where you can find the right people for your business easily. 

Overall, these are the challenges in the UK and advantages in Dubai for business owners. Right now, Dubai wants to attract more businesses to their place, because of which the government of Dubai, UAE is offering amazing advantages to them. 

Step by Step Guide to Company Formation in Dubai

Forming a company in Dubai comprises several steps for the UK investors. Let’s looks at the detailed guide for UK business owners looking forward to establish their business in Dubai:

 Step 1 – Figuring out the business activity 

In the first step of the Dubai free zone business setup you need to figure out your business activity. Dubai offers various business activities such as consulting, trading, manufacturing and many more. So you need to understand what type of business activity you want to invest in. 

Step 2 – Selecting the Right Jurisdiction

There are different jurisdictions setup for different type of businesses and to target a variety of customers. The first jurisdiction is Mainland and if you want to go for company formation in Dubai mainland, then you would be able to trade easily with the local markets of Dubai and globally as well. However, the requirement is a local sponsor owning 51% of the business. 

The next jurisdiction is Free zone, which is the perfect option for you if you want to get 100% foreign ownership and easier business setup processes. However, the only issue would be, you won’t be able to trade directly in the local UAE market without a local distributor. 

The last option is offshore jurisdiction which is specifically developed for international business activities who don’t want to have a physical office in the UAE. 

Step 3 – Other processes 

In the final step you need to reserve a trade name for your business, and send for application for the initial approval to know if your business activity is permissible in Dubai or not. Once that is done, you need to develop a Memorandum of Association (MOA) and local sponsor agreement based upon your business structure. At last lease an office space, submit your documents such as Visa, Passport, NOC, Business plan, and Lease agreement, on the basis of which you will be getting your business license. 

Now is your time to get a corporate bank account, apply for residency visa for shareholders, employees and more and done. 

Conclusion

Setting up a business is not that easy as it sounds like and you would never want any mistake in setting up your business and that too in Dubai. So to never get in any such hassle, you can get in touch with company formation consultants in Dubai who can help you with each and every step of business setup in Dubai without you facing the headache.