ClevverBlog

Highlights
19th Oct 2021

Taxation Documents to File if You Own a Small Business in the USA

15th Oct 2021

THE BRAND NEW CLEVVER COMPLIANCE CENTER

11th Oct 2021

Tokenization of Real Estate

05th Jul 2021

Fully Remote Company Formation in Dubai, the UAE

Overview: 

  • Dubai is an international trade "hub" and a recognized logistics center. It has a supreme geographical location at the crossroads of Europe, Africa, and Asia; 
  • Dubai has a dynamically growing economy and advanced technology; 
  • In the emirate, there is one of the most developed legal systems in the world;
  • There are first-class road networks, advanced telecommunications, ports, and airports in Dubai; 
  • The emirate has a favorable investment climate and state support for foreign investors; 
  • The UAE's market provides opportunities for duty-free transactions under free trade agreements with the Persian Gulf countries (GCC); 
  • There are no currency controls in the UAE; 
  • The jurisdiction has signed double taxation agreements with almost 90 countries.  
  • Clevver offers assistance in the registration of companies in Dubai remotely, providing customers with comprehensive remote support. 

Dubai, the United Arab Emirates, is a large business and financial center. It has created favorable conditions for business development, including for companies founded by foreign entrepreneurs.  

There are many free zones in the emirate, which allow you to easily and quickly establish a company and successfully conduct business around the world. Also, company registration in Dubai is suitable for entrepreneurs who are looking for a profitable and promising option for investment. 

Starting a company in the UAE will help expand business in the territory of the Asian continent and have a successful interaction with the countries of the Persian Gulf. Clevver supports the fully remote opening of business in the United Arab Emirates, Dubai. Find out more details by clicking here

Taxation in Dubai 

The tax system in Dubai, a major business center in the Middle East, is extremely favorable to entrepreneurs and investors. The corporate tax applies, by and large, only to companies operating in the oil and banking sectors of the emirate. 

Features: 

  1. Oil companies in Dubai pay the income tax on profits gained in the UAE. The tax rate differs but must not exceed 55%. 
  2. Branches of foreign banks are taxed at 20% on income obtained in Dubai. 
  3. Free Trade Zones (FTZs) of the jurisdiction have their own rules and regulations. There is no corporate tax in them. 
  4. VAT was introduced in the UAE in 2018. The UAE authorities imposed a 5% VAT rate on jewelry, tobacco, luxury cars, alcohol, etc. Some goods and services are subject to zero VAT charge. 

Obligatory VAT registration for companies in Dubai: 

  • If the taxable supplies and imports of the company exceed 375,000 UAE dirhams per year. 
  • Expected business turnover in the next 30 days will be more than 375,000 UAE dirhams. 

Business Establishment in Dubai   

Dubai has long been attracting entrepreneurs with excellent conditions for creating and running a business. The absence of currency controls and crippling tax obligations make the process of establishing and using a company in the UAE as simple and convenient as possible. Clevver specialists will readily lend a hand to start your Dubai company formation procedure once you’ve applied to us and all is clear on both sides. 

WHY CHOOSE CLEVVER: 

  • The assistance of the highly qualified experts;     
  • The online process of cooperation with Clevver;     
  • A complete package of documentation on the company registration in a digital format;
  • Opportunity to obtain numerous extra to business incorporation services in Dubai (a registered address, mail-handling service, and a local phone number);   
  • Constant customer support and individual approach to each client.  

Summary 

Dubai is one of the largest commercial, financial, and tourist centers in the Middle East. It is the third most important re-export center in the world (after Hong Kong and Singapore). In Dubai, some of the significant types of taxes are absent: corporate income tax, capital gains tax, personal income tax, as well as withholding tax. At the same time, this jurisdiction is not considered a tax haven, in its classic sense. The United Arab Emirates has double taxation agreements with more than 80 countries.

We will be happy to help you form an Ltd. company in Dubai, to start the incorporation process in this jurisdiction right now click here

DISCLOSURE NOTICE: Any legal or tax information in this communication (including any attachments) is for information purposes only and not intended to be used as tax or legal advice. The author is neither an Accountant nor a Lawyer and cannot be made liable. Please, contact your tax accountant or ClevverLegalServices LLP for individual consultation.