There are several compelling reasons, including political, economic, social, technological, legal, and environmental factors, to consider when registering a company in Dubai:
Political Reasons: Dubai boasts a stable political climate with a business-friendly government that actively encourages business development.
Dubai is highly ranked in terms of global efficiency and tax system, as per the 2018 IMD Dubai Competitiveness Report, outperforming many countries including Singapore, Switzerland, and most European Union nations.
However, it’s worth noting that Dubai has also faced criticism for lax restrictions, earning a reputation as a “money laundering paradise,” according to Transparency International.
Economic Reasons: Companies registered in Dubai can benefit from favorable tax conditions, as they are not subject to income or corporate taxes when structured correctly. There are also no trade barrier quotas or foreign exchange controls, allowing for the repatriation of profits.
Dubai’s abundant oil resources provide access to government-subsidized low-cost energy, resulting in cost-effective production, particularly advantageous for energy-intensive businesses.
Social Reasons: Dubai is renowned for its low crime rate and robust security system, creating a safe environment for conducting business.
It ranks as the top country in the Middle East for the best quality of life, offering a high standard of living.
Registering a business in Dubai can also lead to a UAE Residency Visa, enabling expatriates to lease apartments, own properties, and travel freely within the UAE.
Technological Reasons: Dubai is ranked 27th in the Digital Competitiveness Ranking, offering access to a strong physical technological infrastructure.
Legal Reasons: The UAE is actively working on reforms to improve legislation and aims to top the World Bank’s annual ease of doing business ranking.
Dubai’s free zones are increasingly popular due to their tax-free and cost-effective benefits. However, each zone operates under different rules and regulations, requiring careful consideration when choosing the right zone for your business.
It’s essential to be aware that Dubai’s free zone laws can be intricate, and establishing a branch office in the free zone may not be permissible, impacting your plans for local business affiliation.
Environmental Reasons: Dubai, once heavily reliant on oil, has transitioned towards a more sustainable future with initiatives like the Sustainable City, which recycles and produces more energy than it consumes.
The introduction of driverless metro trains has also contributed to significant reductions in environmental impact.
Considering these factors can help you make informed decisions when registering your company in Dubai, aligning your business with the dynamic and evolving landscape of this thriving city.