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Holding company in Dubai

Author: Izrar Ulhaq
by Izrar Ulhaq
Posted: Sep 13, 2017

Incorporation of an organization in Dubai is feasible for a spread of objectives - for international business also as for business directly within the country. These are completely different tasks and business areas. One among the tasks, that an organization in Dubai matches alright - is to create a holding company in Dubai.

Advantages of Dubai, UAE, for the incorporation of a company square measure obvious - absence of taxes on every kind of financial gain of the company. At constant time, that is incredibly vital, an organization might have the standing of a tax resident of the United Arab Emirates, to open a true workplace, rent staff, i.e., if necessary, run a true activity on plus management overseas, and stay within the standing of the corporate exempt from tax payments within the United Arab Emirates. During this case, such company will use variety of treaties for shunning of double taxation, signed by the United Arab Emirates.

This issue basically distinguishes holding firms in Dubai from holding firms which can be incorporated in different jurisdictions, which conjointly offer useful taxation for holdings.

Company in Dubai will, with none complications, make sure its residential standing within the country of incorporation. Compared with offshore firms, that cannot receive such confirmation, may be a vital parameter once selecting UAE because the country for incorporation.

In addition to taxation exemptions on profits obtained by the holding, such company in Dubai conjointly obtains all the advantages once hiring staff in its workplace within the UAE – there are not any taxes or different payments on earnings, and it's not tough to urge employment visas for foreign specialists.

A company in Dubai conjointly effectively protects international assets since any legal proceeding is thought of, as an example, within the court of the Dubai International money Centre beneath the principles of British law.

It is conjointly price noting a chance for an organization incorporated within the UAE to urge access to finance its comes provided by banks within the UAE also as a chance to be listed at the native stock market.

And, certainly, since Dubai may be a prestigious world center for doing business, the corporate receives necessary level of image and extra opportunities for business growth within the region and different countries.

Many people love the idea of being their own boss and making their own schedule, but many are too afraid of taking this route because of ambiguities in the requirements. While becoming a "freelancer" has been a growing trend in the the UAE, many still don’t know where to start this process. Also, and even more importantly, how to do this legally.

What must first be emphasized is what a "freelancer" is. A "freelancer" is an individual that works for themselves and has obtained their own license. Essentially, the freelancer must create his or her own business and fulfill the legal requirements of doing so. In order to become a legally compliant freelancer, the following requirements must be met:

Obtain a license

Freelancers must establish themselves as their own legal identity, meaning they must obtain a license to work in their respective fields. Obtaining a license within the UAE can be done through one of two licensing agents: through the Department of Economic Development (DED) or through a free zone. Both options have its own pros and cons. For example, registering through the DED would widen the (geographic) area of operations where a freelancer can work, while applying through a free zone will allow the non-national freelancer to have 100% ownership of the business.

Rental space

For most of the licensing agents, a Freelance License in Dubai must have some sort of office space within the licensing agent’s jurisdiction. Some of these agents have developed packages for freelancers where the total cost of obtaining a license may include the cost and location of an office space. This requirement is not necessary for all licensing agents and must be verified by each agent.

Timelines and costs

Depending upon where a freelancer chooses to apply for its license, costs and timelines could vary and would need to be considered. In general, the process of obtaining a license could be anywhere between 10 – 20 days. As for the cost, this factor also changes as per the licensing agent but one should expect to pay around AED 15000 – AED 20000. But note this figure is only for getting a license; there are other costs to consider such as visa costs, emirates ID, establishment card and medical expenses. These are annual costs, so the freelancer would need to budget for renewal every year.

About the Author

We are Corporate Advisory firm with a broad range of expertise in business setup in Dubai Offshore company formation, LLC company setup, professional Company Formation and PRO Services.

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Author: Izrar Ulhaq

Izrar Ulhaq

Member since: Apr 07, 2017
Published articles: 24

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