The tax incentives for doing business in Dubai are legendary, namely an attractive 0% tax rate for enterprising business owners, and no personal tax for individuals either.  That’s right, tax free earnings.
Paying taxes on capital gains is also restricted in Dubai and there are no legal regulations on paying property tax or wealth tax there.

Dubai and the United Kingdom have historical friendly ties and the Dubai government has a proactive approach to foreign investment. The United Arab Emirates is the only country in the Middle East where investors can reap the benefits from a large number of free trade zones and free industrial zones. The first to be formed was Jebel Ali, Dubai in 1985. It experienced a huge growth in the following years due to the number of investors attracted to it. Many invested millions and made huge returns from the UAE free zones.

Around 12,000 companies nowadays operate under the UAE Free Zones Authority. Dubai is the seventh emirate and expands along the Arabian Gulf coast for 45 miles with an area of 2,400 square miles.

With a population of around one million, Dubai is now the undisputed business hub of the Middle East. With exception of banks and companies involved in the oil industry, all Dubai companies are free from corporation tax, income tax, capital gains tax and inheritance tax.

There is also no public record of a company’s directors’ or shareholders in Dubai, no tax department and so personal information and details of a company’s activities remain private in Dubai.

Dubai’s Jebel Ali Free Zone offers an offshore company vehicle for foreign investors. Trading inside the Free Zone can be carried out under several different types of license.

Setting up a business in Dubai Free Zone

Depending on the type of business an investor chooses, in general the following are the main options:

•    Free zone establishment (FZE). One individual shareholder
•    Free zone company (FZCO). More than one member
•    Branch office

As all the above may not be available to every free zone, it is highly advisable to seek the advice of a consultant, experienced in setting up businesses in Dubai. They will know all the fine detail of what is available and not in any given zone. They’ll also guide you through all the legal paperwork.

Listed below are the common documents for the three zones mentioned:

Free Zone Establishment
1. Application form
2. Business profile of the owner
3. Copy of the owner’s passport
4. Original bankers reference

Free Zone Company
1. Application form
2. Business profile of individual
3. Copy of owner’s passport
4. Original bankers reference
5. Board resolution
6. Copy of manager’s passport
7. Manager’s signature

1. Certificate of Registration
2. Memorandum and Articles of Association
3. Board resolution
4. Copy of Manager’s passport
5. Managers signature
6. Parent company’s profile