Yes, you read that right. Freezone companies in the UAE are exempt from corporate taxes, and individuals are not subject to taxation. With your new Dubai-based Freezone company, you can forget about terms like capital gains tax, trade tax, or income tax.
Please note that this tax exemption only applies to Freezone companies. As of 01.01.2023, mainland companies are subject to a 9% corporate income tax.
Aside from the significantly reduced workload, the elimination of bookkeeping also saves you the monthly costs of an accountant. With your Dubai-based company, you no longer have to worry about depreciation or keeping detailed financial records. You can simply use your company credit card to pay for personal expenses.
In the UAE, there are no public company registries, as is the case in most European countries. This means that the directors and shareholders of a company in Dubai can remain anonymous, and it is practically impossible to establish a connection between you and your Dubai-based company.
Dubai is highly regarded by both tourists and businesspeople alike. It is known for its sunny weather, luxurious amenities, and unique leisure activities. Additionally, the UAE has signed double taxation agreements with all developed industrial countries, including Germany. This means that you won’t have any problems invoicing European companies in high-tax countries.
The UAE has signed DTTs with 74 countries, including most developed and developing countries. These treaties aim to eliminate the double taxation of individuals and businesses in both the UAE and the other country, as well as to promote trade and investment. The specific terms and conditions of each treaty vary, but in general, they provide for reduced or exempted tax rates on certain types of income, such as dividends, interest, and royalties, and they establish procedures for resolving tax disputes between the two countries.
Are you looking to relocate to the UAE and need a residency visa? Setting up an offshore company in Dubai can be the perfect solution. Not only does it allow you to enjoy tax benefits and ease of doing business, but it also entitles you to apply for a residence visa and Emirates ID.
By setting up an offshore company in Dubai, you can apply for a residency visa through your company, which can sponsor your application. With the right support, you can enjoy the benefits of living and doing business in the UAE.
LTC Business Services provides comprehensive assistance in setting up a company, including Visa and bank account opening. Our services are structured as follows:
At LTC Business Services, we strive to provide our clients with seamless company setup solutions, and we are committed to delivering exceptional service.
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Have you ever considered setting up a holding company? Find out more about the benefits. Reduce taxes rates on dividends or capital gains significantly or in many cases even to an astonishing figure of 0%. Find out more about the benefits.
If you have any unanswered questions, please don’t hesitate to contact us.
Dubai offers several types of company structures, including Limited Liability Company (LLC), Freezone Company, Offshore Company, and Branch of Foreign Company. Each type of company has its unique features, benefits, and requirements, so it’s crucial to choose the right structure that aligns with your business needs and goals.
The minimum capital requirements vary depending on the type of company you want to form and the business activity you plan to undertake. For instance, the minimum share capital for an LLC in Dubai is AED 300,000, while for a Freezone company, it can range from AED 50,000 to AED 1 million. However, some Freezones do not require any minimum capital.
The documents needed to form a company in Dubai include a business plan, passport copy of all shareholders, a Memorandum of Association (MOA), and Articles of Association (AOA). Additionally, depending on the type of company and Freezone, additional documents may be required, such as a No-Objection Certificate (NOC) from your current sponsor or employer and a tenancy contract.
The company formation process in Dubai can take anywhere from a few days to several weeks, depending on the type of company, the Freezone, and the business activity. For instance, forming an LLC in Dubai can take up to 15 days, while forming a Freezone company can take as little as 1-2 days. However, it’s worth noting that delays may occur due to various factors, such as incomplete documentation, pending approvals, and peak business seasons.
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