Was starting a new business in Dubai your dream at any point of time?
It’s never too late to begin something great.
It’s true that the world economy is facing a major setback due to the recent pandemic. Every business is trying hard to survive the effects of the lockdown.
But, being a nation that has risen from the desert land and has overcome major economic crisis like the recession of last decade, there is no doubt that UAE will not just survive but thrive in the days to come.
Apart from that Dubai also offers myriad opportunities like offshore business setup, onshore business setup and free zone setup, making it the perfect business destination for all.
Offshore business setup in Dubai
An offshore business setup would be the most beneficial way to begin or expand your business in 2020 because it offers many benefits compared to other options. It is a company that is operated outside of the country in which it is registered or in a different nation in which the owners or shareholders have residence.
The Dubai offshore company policy got incorporated under Jebel Ali Free Zone Authority (JAFZA) in the year 2003 and since then it became a business hub for MNCs and SMEs alike. Offshore companies are duly recognized not only in Dubai, but the entire UAE and the government offers many tax concessions and financial benefits for these enterprises.
Benefits of an offshore business formation in Dubai
In the entire Middle East, Dubai is the most preferred location to start an offshore business setup because of its global status as a business hub and the numerous possibilities that it presents to a new enterprise. Listed are a few benefits of an offshore business setup.
- An offshore company could enjoy complete foreign ownership
- Through offshore setup, companies could enjoy a certain degree of privacy
- Permission to own real estate properties in sanctioned areas with prior authorization
- No need to set up an office in Dubai
- Flexibility to maintain multi-currency bank accounts
- An offshore business in Dubai doesn’t need a UAE citizen as its sponsor or shareholder
- Exemption from all corporate and income taxes
- Total repatriation of the profits are allowed
- Feasible for startups as the setting-up costs are low
- Offshore company in Dubai could be set up with just one director or shareholder
How will the pandemic affect offshore business formation in Dubai?
As in every other domain, offshore company formation has also undergone its share of setbacks due to the unprecedented turn of events. Even the Expo 2020 which was supposed to bring a business boom in Dubai was postponed to 2021 as a part of safety precautions.
But, there are also many positive signs for businesses and budding entrepreneurs to retain their hope for a better tomorrow. Governments are providing all support for businesses by providing relaxation in registration charges and other official parameters.
As part of our social responsibility, we at Axiom Mark have also reduced our fees and other charges to promote business during these tough times.
With the Expo next year, it is obvious that many crucial decisions will be taken and the present policies will be revived attracting even more startups and MNCs to this business arena.
As, offshore business is the most lucrative option for startups, it is sure to flourish with 2020 and it would greatly help novel enterprises if they could prepare in advance for the business season.