Dubai Company Formation – 0% Tax Rate Drives 2011 Dubai Company Formation Increase
Dubai company formation has long been desirous on many levels, and even with the global banking slap that affected them due to the housing and mortgage scandal that started in the U.S., Dubai still remains the financial center of the United Arab Emirates (UAE), and one of the most powerful financial cities of the eastern world. With tax rates as low as 0% guaranteed over a fixed term, favorable Dubai company formation features have led to a surge in business corporation filings.
An amazing 33% increase in commercial business registrations from Quarter 4 2010 to Q1 2011 has resulted in 14,503 new businesses licensed in Dubai. More importantly, “Trade Name Reservations” reached 12,211 business titles. What this illustrates is the number of new license applications, and the combination of these two numbers really hits home when you see so many other countries, at home and abroad, struggling to attract overseas investors. This huge increase of DED licenses issued is a sure sign of investor confidence, and is a direct result of the strength of the Dubai economy and the attractive, liberal business structures put in place to attract foreign investors.
And weather you intend to seek Dubai company formation in name only, or intend to work in International Trade, real estate, or operate a global holding firm, opening an International Business Company (IBC) can be employed as long as you don’t plan on conducting any business operations inside the UAE.
And with incredible benefits such as 0% tax over a pre-determined time, 100% repatriation of capital funds and profits, and 100% foreign ownership, Dubai company formation is certainly something you can’t overlook if desiring an overseas business presence. There are many company types available.
Dubai Company Formation
Opening a company in the Free Trade Zone means licensing by the Free Zone Authority (FZA), and access to the geographically important benefits Dubai has to offer. But filing is intricate, and must be handled by a trained, Dubai company formation specialist who knows what cultural and professional hurdles await.
You can also open business as a Limited Liability Company (LLC) when you consider Dubai company formation. This is the most attractive and most popular choice for non-UAE professionals who wish to practice business in Dubai, and offers non-listed business class protection, and a slew of favorable tax and legal features.
Opening a Public Stock Company (PJSC) is the opposite of an LLC, and requires 10 founding members, and a capital share fiduciary commitment of at least AED 10,000,000 ($2,722,570 US), obviously for larger companies.
Dubai company formation can also occur in the form of a Private Joint Stock Company or Private Company. This entity requires a minimum of AED 2,000,000 ($544,514 US ) capital initially, and shares can be offered for public sale. In all other ways, this is a PJSC-liable company.
A Branch Office is available for companies looking to benefit from a Dubai local physical presence, but many activities are restricted. Finally, there is the Representative Office, where a foreign business can seek business and customers, but all business activities must be handled by the parent company, and not in the Representative Office in Dubai.
If 0% tax rates, a burgeoning economy, massive business growth and free repatriation of funds and profits is attractive to your business, contact a seasoned Dubai company formation specialist today, and reap the rewards offered by the powerful UAE for your company .
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