Buying real estate in Dubai has become a more attractive option now that the Dubai government has taken steps to simplify the process of buying and selling property. Company owners can also benefit from these regulations if they buy property through a company formed in Dubai.
Property prices have been increasing throughout the world, and Dubai is no exception. The currency of the UAE is the dirham, which has appreciated considerably in value since the introduction of the Euro. Although Dubai real estate can be very expensive, for investors who hold large amounts of cash or are looking to diversify their portfolio by acquiring property in another country, a company formed in Dubai may provide an attractive option.
The total population of Dubai is approximately 1.4 million and the second-largest city in the UAE, after Abu Dhabi. Property prices are buoyed by strong demand from new residents who come to Dubai to work in government offices or for multinational corporations based there. Many properties for sale have been designed especially for expats; they have large kitchens, freehold ownership rights, and English-speaking support staff to help with day-to-day arrangements.
- The UAE has a low tax rate
The UAE has a federal tax rate of 5% – and many companies don’t need to pay this because they are exempted. Company profits taxes in the UAE are levied at: 5% on personal income tax for residents
- 5% on corporate profits tax (CIT) paid by entities incorporated in the UAE, except banks licensed in accordance with the Central Bank of the UAE Law No. (1) of 2005 and insurance companies licensed in accordance with the Insurance Company Law – as amended
0% for REITs that are entitled to corporate tax exemptions and 0% for financial institutions licensed by the CBE
- Company law is straightforward and clear
The Company Law spells out clearly which companies are allowed to operate in the UAE and what they need to do to stay in operation. Company law issues are decided by courts, lawyers or government regulators with decades of experience. Company documents must be translated into Arabic but few other languages are needed because the Company Law is clear enough. Company managers or directors need not know Arabic
- Company compliance procedures are straightforward and clear
Companies in the UAE must submit quarterly reports to the local Federal Tax Authority. Company auditors must be registered with the Board of Auditors, an independent body licensed by the Ministry of Finance. Company directors should be resident in Dubai or hold a power of attorney from a director who is a UAE resident. Company managers do not need to be resident unless the Company Law requires them to be. Company managers should check with their bank before opening an account that they are not obliged to hold a license as a financial services entity or investment firm
- Company owners can be from any nationality and reside anywhere in the world
There is no requirement for Company owners to have UAE residence or nationality. Company owners must have a UAE bank account in order to pay Company annual fees and file Company returns, but there is no requirement for Company owners to be resident or hold an iqama (residency permit)
- Company ownership need not be disclosed
The Registrar does not require the names of Company owners to be disclosed when filing Company returns. Company owners can choose to have their Company ownership details remain confidential, unless they are directors of the Company
Incorporating a UAE mainland Company offers the benefits of:
1. Company profitability grows faster than with an offshore Company because there is no need to pay for expensive annual audit fees every year
2. A Company registered in the UAE mainland has the advantage of being able to obtain a FZ-NIC Company name registration (the Company name will be used as the Company’s trading name)
In summary, a Company registered in the UAE mainland offers all the benefits of an offshore Company whilst having extra flexibility and confidentiality too.
3. Company owners are not required to be UAE nationals. Foreigners and expatriates can be Company owners.
4 Company Owners will not need a license from the Ministry of Labor [unless they will carry out Employment business]
Summary: Companies registered in the UAE mainland are entitled to enjoy all the benefits of offshore Company registration with additional flexibility, freedom and confidentiality they offer their Company owners.
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Registration of a Company in Dubai is simple and affordable, especially when compared to other major global financial centres such as London and New York. The process takes only one day so it saves business people both time and money. Company formation companies in Dubai Company registration Company name Company incorporation. Company type Company structure Company registry Company structure
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For example, many people decide to open a bearer share company which means that the owner of the shares is not known. This can have major tax benefits in some circumstances.
Dubai has made it easier and more affordable for people to buy real estate. The government’s new regulations have simplified the process of buying property, making it a more attractive option than before. Company owners can also benefit from these regulations if they buy a property through their company formed in Dubai as this will help them avoid paying taxes on capital gains elsewhere in the world by exempting any profit originating within UAE borders from taxation. With so many benefits and advantages available, there is no better time than now to take advantage of Dubai’s latest investment opportunity!