Simplify Your Dubai Company Formation
Company formation in Dubai provides the perfect environment to build and expand your business. With The Arabian Dream by your side, you’ll benefit from our expertise and complete service, guiding you smoothly and efficiently through every step of the setup process. Discover the advantages of Dubai company formation and start with a trusted partner today.
Fair & Transparent Pricing
Our offerings are highly transparent. We clearly outline all costs, specifying which are government fees and which are our service fees.
Fast Company Formation
We are likely the most digital business formation agency in the UAE, with 97% of our internal processes fully digitalized. This enables fast and efficient company setups.
Company Formation Process
Thanks to the Foundster.com platform, which is exclusively available to our agency, we have achieved an automation level of 97%.
Why a Company Formation in Dubai?
Discover the top reasons why Dubai is an ideal location for your business. With its strategic global position, favorable tax structure, and thriving economy, Dubai offers exceptional opportunities for growth. Find out how this dynamic city can support and elevate your business success.
01.
Advantageous Tax System
In Dubai, a nominal corporate tax of 9% is levied on profits exceeding 375,000 AED. However, salaries and operating expenses can be deducted before reaching this threshold. As a result, many small businesses and sole proprietors often pay no corporate tax at all.
02.
Rapid Wealth Building
As a director in Dubai, your salary is completely tax-free, as there is no income tax, unlike the high tax rates of up to 50% in many other countries. Investing your tax savings, for example in real estate, can significantly accelerate the growth of your wealth.
03.
Minimal Bureaucracy
For entrepreneurs, it is essential to focus on their business. Although bookkeeping is required in Dubai, the complexity of managing a company is significantly lower compared to many other countries. This allows you to dedicate your energy to what truly matters.
Which Business Structure Suits My Needs?
The cost of company formation in Dubai depends on whether you choose to establish a Mainland or Freezone company. Freezone companies generally have lower setup fees and offer tax advantages, while Mainland companies provide more flexibility for business operations within the UAE market. Each option has distinct benefits and costs, tailored to different business needs.
Freezone Company
Setting up a Freezone company in Dubai is an excellent option for businesses that primarily generate revenue outside the UAE, such as e-commerce, consulting, or international trading firms. Freezone companies benefit from a simplified setup process, tax incentives, and the flexibility to operate without the need for a local sponsor. This structure allows 100% foreign ownership and offers ease of operation within the Freezone, making it ideal for businesses that do not require direct access to the UAE mainland market. However, Freezone companies are restricted from directly trading within the local UAE market unless they work through a distributor.
Advantages of Freezone Company Formation:
- 100% foreign ownership with no need for a local sponsor
- Attractive tax incentives, often including a 0% corporate tax rate
- Streamlined setup process with fewer regulatory requirements
Disadvantages of Freezone Company Formation:
- Restricted from direct trade within the UAE mainland without a distributor
- Limited to operating within designated Freezone areas
- Requires a local distributor for direct access to the UAE consumer market
Mainland Company
Starting a Mainland company in Dubai is ideal for businesses that work directly with local clients on the mainland, such as restaurants, retail stores, or service providers that require direct market access. Mainland companies are allowed to operate freely across Dubai and the UAE, offering greater flexibility for businesses aiming to reach local consumers without restrictions. This setup is beneficial for companies needing a physical presence or planning to secure government contracts, as only Mainland companies have unrestricted access to the local market. However, Mainland businesses must also adhere to UAE regulations and may have additional setup requirements.
Advantages of Mainland Company Formation:
- Full access to the local UAE market, including government contracts
- Ability to open offices and retail spaces anywhere in Dubai and the UAE
- No restrictions on working directly with UAE-based clients
Disadvantages of Mainland Company Formation:
- Potential need for a local sponsor, depending on the business structure
- More regulatory requirements and compliance compared to Freezone companies
- Higher operational costs due to rental and licensing requirements
What Are the Costs of a Company Formation?
Book our comprehensive service package for your company formation in Dubai. As a licensed corporate service provider, we are fully authorized to conduct legally valid company formations in Dubai. Our package encompasses the entire setup process, ensuring a seamless experience where every detail is handled professionally on your behalf.
Our Company Formation Service Package
8,900 AED
We manage the entire process of establishing your company in Dubai. With our service package, you can relax while we handle all the bureaucratic details.
This package includes:
- Comprehensive consultation on your company setup
- Preparation of all necessary documents
- Application for your company license
- Drafting of a Memorandum of Association
- Opening of a business bank account
- Registration of the company for corporate tax
- Personal delivery of the incorporation documents
- Official, legally binding company stamp
Book Your Consultation
In your complimentary initial consultation with me, we’ll thoroughly discuss your plans for Dubai. Together, we’ll analyze your current situation, explore potential exit strategies, and address all of your questions.
- Analysis of Your Current Situation
- Professional Consultation on Company Formation in Dubai
- Initial Review of Exit Tax Implications
- Guidance on the Relocation Process
- Guidance on Schools & Daycare Options in Dubai
- Health Insurance Consultation
- Real Estate Purchase Consultation
Top 5 Information About Company Formation in Dubai
Here you will find all the important information about company formation in Dubai, compiled by our experts.
Topics
1. Advantages of a Company Formation in Dubai
Dubai is the city of entrepreneurs. The entrepreneurial spirit permeates all areas, and the people here strive for success and prosperity. The dynamic atmosphere and continuous drive to develop and implement new business ideas make Dubai an inspiring place for entrepreneurs. A strong network of successful businesspeople and numerous opportunities for interaction with like-minded individuals foster innovation and growth. Dubai offers a supportive community that embodies and promotes the entrepreneurial spirit.
Another significant advantage of starting a business in Dubai is the tax attractiveness. There is no income tax in Dubai, and the capital gains tax is only 9% on profits exceeding 375,000 AED. These favorable tax conditions allow entrepreneurs to reinvest a larger portion of their profits and expand their businesses more rapidly. The low tax burden also creates financial flexibility that can be utilized for strategic investments and long-term business planning.
In Dubai, entrepreneurs benefit from a supportive and relaxed business environment. Authorities are committed to making bureaucratic processes as simple as possible, reducing administrative burdens. This business-friendly attitude results in less stress and allows for greater focus on core business activities. The combination of an entrepreneurial environment, tax advantages, and a relaxed administrative atmosphere makes Dubai an ideal location for German entrepreneurs.
2. Review of the Conditions of Your Dubai Company Formation
Before you take concrete steps toward your company formation and relocation to Dubai, thorough consultation is essential. The legal and bureaucratic requirements can be complex, and without the right support, mistakes can easily occur. Careful planning and professional advice will help you understand the specifics of the business formation process in Dubai.
Many individuals who hastily jump into company formation without sufficient consultation often unknowingly fall into traps such as tax evasion. Such missteps can lead to serious legal consequences and jeopardize the success of your business. Through comprehensive consultation, you can ensure that all legal requirements are met and that you avoid common pitfalls.
Our company formation service package ensures that you receive informed and reliable advice even during the planning phase of your company formation, allowing you to approach your company formation in a compliant and structured manner. We offer you tailored solutions and support in all aspects of starting your company in Dubai. This way, you can fully focus on building your business while we take care of the administrative and legal details.
3. Exit Taxation
A critical factor in starting a business in Dubai is existing holdings in corporations. If you are subject to tax in Germany and own at least 1% of the shares in a corporation, regardless of its location, this generally triggers exit taxation. These tax regulations can have significant financial implications and must be carefully examined before you take the step to move to Dubai.
It is therefore essential to thoroughly review this matter and be aware of the possible tax consequences. An unprepared relocation could lead to unexpected tax liabilities that could severely restrict your financial flexibility. To avoid such issues, it is advisable to seek professional advice early on and conduct a comprehensive analysis of your current holdings and tax obligations.
Based on our analysis, we will work together with experts in international tax law to develop a tailored strategy for your successful relocation and company formation in Dubai. Our customized solutions take into account your individual circumstances and help you navigate the tax challenges. This way, you can be confident that your company formation in Dubai is legally compliant and tax-optimized, allowing you to fully focus on building and growing your business.
If exit taxation applies to you, our goal is to develop strategies to prevent it from being triggered upon your departure. Exit taxation can impose significant financial burdens, so it is crucial to take measures early to avoid it.
To achieve this, we collaborate with a leading German firm specializing in international tax law that has extensive experience with the specific circumstances in Dubai. These experts can provide you with tailored solutions that are precisely aligned with your situation. This includes options such as converting your company holdings into a limited silent partnership, transferring your GmbH into a GmbH & Co. KG while maintaining substance in Germany, or tax-optimizing your GmbH into a foundation.
Our aim is to find a legal, smart, and substantial solution for your case. Through close collaboration with experienced tax experts, we ensure that you receive optimal advice and that your company formation in Dubai can proceed without undesirable tax consequences. This way, you can strategically plan your relocation and the establishment of your business in Dubai.
4. The Process of Dubai Company Formation
Starting a business in Dubai is a bureaucratic process, but as a client of “The Arabian Dream,” you don’t have to worry about anything. We handle the entire formation process for you, from the initial planning to the final implementation. We ensure that all necessary documents and formalities are submitted correctly and on time to guarantee a smooth company formation.
We personally accompany you to all required appointments here in Dubai. Whether it’s government offices, notary appointments, or other important meetings — you can rely on our support. Our comprehensive on-site assistance ensures that you can focus entirely on your business while we take care of the bureaucratic details.
You benefit from our professional support and advice at every stage — not just until your arrival, but also beyond. After the successful establishment of your business, we continue to assist you to ensure that your venture in Dubai starts and grows successfully. Our commitment does not end with the company formation; we offer ongoing support to help you succeed in the long term.
5. How You, as an Entrepreneur, Can Obtain a Visa
When starting a business in Dubai, you also have the opportunity to apply for a visa through your own company, with your business acting as a sponsor for your visa. This option significantly simplifies the process and ensures that you, as the owner, can operate locally. Your company acts as the sponsor, reducing bureaucratic effort and giving you more time to focus on what truly matters: building and managing your business.
Our All-in-One Relocation Package already includes a visa valid for two years. This visa allows you to reside in Dubai without additional complications while managing your business. After this period, renewal costs will apply, which we will communicate to you transparently and in advance. This way, you are always well-informed and can adjust your long-term planning accordingly.
As part of the company formation, you will receive an employment contract as the “General Manager” of your company, which serves as the basis for your visa. This contract legitimizes your residency status and ensures that all legal requirements are met. Through this structured approach, we ensure that you have all the necessary permits and documents from the very beginning to operate and live successfully in Dubai.
6. Become Business-Ready Quickly and Securely
After the successful completion of your company formation in Dubai, our experts conduct a final review to ensure that you are fully business-capable and that there are no risks regarding potential tax evasion. This comprehensive assessment provides you with the confidence that all legal and tax requirements are met, allowing you to focus entirely on building and expanding your business.
Especially if you remain registered in Germany and relocate significant business activities of your German company to Dubai, there is a very likely possibility that the earnings of your Dubai company will be subject to German taxation through the exit tax. Our experts thoroughly analyze these aspects to ensure that you are informed about all tax obligations and potential consequences. This analysis is crucial to avoid financial surprises and to create a solid foundation for your international business activities.
It is therefore essential to reevaluate your situation after the company formation to clarify what you need to pay attention to. We offer you detailed post-formation support and inform you about all relevant tax and legal aspects. This way, you can ensure that your company is not only successfully established but also operates long-term on a solid and compliant basis.
7. Registration for Corporate Tax
According to legal regulations, your newly established company must register for corporate tax within 2 months, even if the projected annual profit is below the exemption threshold of 375,000 AED. This registration is mandatory to comply with the legal requirements in Dubai and to ensure that your company operates in compliance from the outset.
Failure to comply with this requirement may result in a fine of 10,000 AED. To avoid unnecessary costs and legal issues, it is important to adhere to deadlines and carry out the registration in a timely manner. Early and correct registration protects your business from potential penalties and allows you to focus entirely on building and growing your business.
Our All-in-One Relocation Package already includes the registration of your company for corporate tax. We take care of the entire process for you and ensure that all necessary formalities are completed correctly and on time. With our support, you can be confident that your business meets all legal requirements from the very beginning, allowing you to concentrate on what truly matters: the success of your business in Dubai.
1. What Are the Benefits of Starting a Business in Dubai?
Starting a business in Dubai can be very attractive for entrepreneurs for a variety of reasons, especially due to the tax benefits. One of the standout advantages is the relatively low corporate tax rate of only 9% on profits that exceed 375,000 AED. This comparatively low tax burden can significantly contribute to maximizing your company’s profits.
Dubai also boasts a very entrepreneur-friendly atmosphere. The bureaucratic effort involved in establishing and managing a business is considerably lower compared to many other locations. This not only simplifies the company formation process but also fosters dynamic entrepreneurship and innovation.
Although bookkeeping is required, the tax system and requirements for entrepreneurs in Dubai are manageable and less complex than in many other countries. These factors combined make Dubai an attractive location for business formations and provide a solid foundation for growth and success.
2. Review of the Conditions of Your Dubai Company Formation
We must answer this question with a clear “Yes.” Another significant advantage of living and working in Dubai is the absence of income tax. This means that a salary, for example, 60,000 AED per month, that you withdraw from your company remains completely tax-free. Rental income in Dubai is also tax-free. These conditions allow for personal wealth to be built significantly faster than in many other countries.
In contrast, the tax burden in countries like Germany can be substantial. In addition to income tax or payroll tax, there are other taxes that can reduce your disposable income. These include vehicle tax, 19% VAT on personal consumption, property tax, tobacco tax, and more. This cumulative tax burden makes up a significant portion of your income and substantially slows down your wealth growth. In Dubai, however, you benefit from a system that imposes far fewer tax obligations. This allows more of your earned money to be available for personal growth, investments, and building personal wealth.
The comparison clearly shows: in Dubai, you can build your wealth at least twice as fast simply because you pay less tax and can make your money work more effectively for you.
3. What Requirements Must Be Met to Benefit from the Tax Advantages?
To fully take advantage of the tax benefits in Dubai, certain requirements must be met. Firstly, it is essential that you completely relinquish your residence in Germany. This means you should neither own an apartment nor have access to an apartment in Germany — including having the keys.
Additionally, a solid level of English is essential, as English is primarily spoken alongside Arabic in Dubai. The ability to communicate in English is therefore crucial for daily life and business management.
A critical aspect that is often overlooked is the need for comprehensive consultation before starting a business in Dubai. This is particularly relevant for individuals who are already shareholders of a GmbH or a foreign corporation with at least a 1% stake. In these cases, relocation will trigger what is known as exit taxation, which can potentially lead to significant tax liabilities. Fortunately, there are strategies and planning opportunities to avoid or minimize such financial disadvantages. Thorough preparation and consultation are essential to optimally utilize the tax advantages of Dubai while avoiding potential pitfalls.