How to setup a Company in Dubai from UK?
Dubai is a popular business destination and an investor favourite center for setting up a company. The City of Dubai offers a wide range of business benefits for entrepreneurs. The process of registering a company in Dubai from UK is fairly straightforward if you hire a business consultant. It will help in the easy coordination of Investors, Free Zones, and other Govt. Departments.
Setting up Company in Dubai from UK is always in high demand as foreign investors prefer UAE for their business. UK Citizens can setup a company in Dubai from being at the comfort of their home.
UK Citizens can register a company in Dubai via seeking assistance of experienced business consultants like AURION. The required documents can be sent online to them and they will coordinate the process of company setup in Dubai.
Can a UK resident obtain Personal Income Tax exemption in UK if he is a resident of UAE and earns income from Salary or Dividends from UAE Company?
A UK resident or Citizen with a UAE resident having a residence visa and Emirates ID can claim the UK personal income tax exemption. They will get an exemption from salary or dividend earned from UAE company. However, they must be a non-UK tax resident and must pass the Statutory Residence Test (SRT).
So, the UK resident must have a valid UAE residence visa and Emirates ID Card. They must spend limited time in the UK to avail the claim.
Key Steps to Achieve Tax Exemption:
Proof of Residence for Tax – Clear the SRT and spend less than 183 days in the UK and show no ties to home country.
Get UAE Tax Residence – For investors, employees, freelance visa holders in UAE can obtain the Tax Residence Certificate. They can prove the tax status in the UAE. AURION will support in obtaining TRC.
Manage UK Income – For non-residents of UK, their UAE earnings are mostly free from UK income tax. If there is a UK property, apply for the Non-Resident Landlord Scheme to receive rent without automatic tax deduction.
Note: Consult a Tax Advisor in UK to get the up-to-date information on Tax matters.
UK Shareholder of UAE Company – Tax Levied by UK on Dividend Received
UAE Company profit – AED 1 M
UAE Corp tax 9% – AED 56,250
Board declares 40% dividends – AED 377,500 to shareholders.
Retained in company – AED 566,250
If you’re a UK tax resident, that AED 377,500 divident is subject to UK dividend tax up to 39.35%, even though UAE tax was already paid.
UK-UAE treaty gives no credit because UAE personal tax as 0%
Why do UK Investors Prefer Dubai for Company Registration?
Dubai is the perfect choice for UK Citizens to start a company easily. There are numerous business benefits for an investor from UK in Dubai.
- The 100% foreign ownership,
- Low taxation rates (only 5% VAT charged)
- Enormous business infrastructure
- The strategic location of the city & global connectivity
- Geopolitical stability, and the growing business ecosystem
All of these benefits make Dubai a perfect choice for entrepreneurs from around the world to do business seamlessly. Dubai stands No.1 in the ‘Ease of Doing Business index’ in the Middle East region. The Free Zones play a significant role in bringing foreign entrepreneurs and easily establishing their businesses in UAE.
Company Formation Process in Free Zones of Dubai
The Company Formation process in most of the Free Zones in the UAE is remote and can be initiated online. However, it requires the expert assistance of a Business Consultants in choosing the right business activity, business license type, office space, additional approvals, etc.
AURION will assist foreign investors from UK with the right company formation package depending on the investor’s exact business requirements and budget constraints.
The company formation process in the UAE Free Zones is straightforward and follows a set procedure. UK Citizens can benefit from the online company incorporation with the help of Business setup consultants in the UAE.
Foreign investors from the UK can get in touch with AURION to remotely handle the request for company incorporation in UAE.
Steps in Setting Up a UAE Free Zone Company by UK Resident?
Setting up a company in UAE by a UK Resident follows certain procedures to ensure the smooth registration of the company in the Free Zones. Following are the steps in setting up a company in UAE Free Zones.
- The trade name is an important aspect of starting a new company in the UAE. It will be used in company assets such as trade license, company stamp, marketing, client communication and more.
- Choose the right business activity, company structure, and Free Zone facilities depending on the nature of the business. AURION will assist you in choosing the right Free Zone depending on the specific business requirements.
- Prepare the application form, fix the tradename, attach the shareholder details (passport copy, photographs), and make the required fee payment to the Free Zone.
- Prepare the tenancy contract for the office space. Aurion will assist in locating the exact office space for your business and coordinate with the Free Zone for the paperwork and issuing of the office keys.
- Once the documents are submitted for review and the business license fee is paid to the Free Zone, there will be a review process.
- The Business License will be issued by the Free Zone to the investor. It enables them to start doing their intended business activity specified in the trade license.
- After receiving the trade license, the investor can apply for a UAE residence visa and a corporate bank account for the company.
- Foreign investors must be physically present for the medical examination and process the Emirates ID application in case they want to apply for the UAE Residence Visa.
Also, for the UAE banks, there is a requirement that the investor must be physically present for opening the bank account as part of the compliance procedures. However, many banks conduct the verification online due to the prevailing pandemic around.
List of Free Zones in UAE that are ideal for Investors from the UK
Following is the List of Free Zones that are perfect for entrepreneurs from the UK to set up a company in the UAE. Free Zones in UAE offers the perfect Launchpad for foreign investors to easily start their dream venture in the country.
There are enormous business benefits for foreign investors when it comes to setting up a company in the UAE Free Zones. Foreign expatriates can benefit from the Double Taxation Avoidance Agreement (DTAA) and avoid paying double taxation and secure their revenue earned in UAE.
1. Dubai Airport Free Zone
Dubai Airport Free Zone is one of the top-rated Free Trade Zones in UAE that houses the world’s best companies and start-ups. It is the perfect choice for UK based Investors for setting up an office.
The Free Zone has a prestigious Dubai address for its investors and also offers a host of business activities across various sectors. The Free Zone has companies spread across consulting, aviation, logistics, engineering, heavy machinery, trading, aircraft maintenance, and many more.
The proximity to the Dubai International Airport makes it a popular choice for investors from UK. The accessibility, world-class infrastructure, warehousing facilities, customized office spaces, etc., are ideal for entrepreneurs to easily start operating their businesses.
Read more about DAFZA here.
2. Dubai Silicon Oasis – IFZA
Dubai Silicon Oasis -IFZA is a dynamic Free Zone that offers attractive business setup packages for investors from UK across trading, commercial, and service-related activities and more.
The cost of a business license in the IFZA Free Zone is AED 17,900. The investor will get one visa quota as part of the company setup package. The Free Zone offers various business license packages ranging from Zero Visa Quota to more than 6 Visa Quotas.
Also, the Free Zone offers a wide range of business activities for the investors to choose for their company. The robust infrastructure and business support services make the Free Zone a popular hub for the UK based entrepreneurs.
Read more about IFZA here.
3. Dubai World Trade Center
For UK residents to start a company in Dubai, the Dubai World Trade Center is one of the perfect choices. There are numerous international services, trading, and commercial companies operating across multiple floors and buildings in the Dubai World Trade Center.
The Free Zone provide a host of business licenses and ample office space facilities on lease contract to the investors. The Dubai World Trade Center is the heart of Dubai City and a growing business hub with companies across the various business sector.
The Dubai World Trade Center is a perfect place for UK Residents to launch their start-up as they have a wide range of Flexi-desk, Shard office, and shared desk facilities. Also, benefit from the low taxation regime.
Also, the business ecosystem provides ample opportunity for the collaboration of start-up teams to achieve collective success. The incubators and start-up accelerators in the Free Zone will support the start-up growth greatly.
4. Sharjah Airport Free Zone ( SAIF Zone)
Sharjah Airport Free Zone is a popular Free Trade Zone in the emirate of Sharjah. The Freezone offers a host of office and warehouse facilities. The proximity of the Free Zone to the Sharjah International Airport makes it a bustling hub of trade and commerce.
For UK residents opening a company in the Sharjah Airport Free Zone can be highly beneficial. SAIF Zone is a designated zone and the UK resident Investor can gain significant tax exemptions. There is no VAT levied on exports to other countries.
So, a UK resident can operate their international trading business from SAIF Zone and have significant tax advantage. They will have zero VAT payable for international exports.
SAIF Zone companies can also enjoy 0% Corporate Tax. They must be generating profits less than AED 375,000 yearly, maintain a permanent establishment, generate only qualifying income, maintain transfer pricing rules, maintain de-minimis requirements (must generate only 5% of total revenue or AED 5 million whichever is less from non-qualifying income), then they can have zero percent corporate tax.
5. Ajman Nuventures Free Zone
Ajman NuVentures is another fastest-growing Free Trade Zone in the Emirate of Ajman. It offers a host of attractive company formation packages for UK Residents. Especially those who wants to start small and explore the UAE market, this Free Zone is the right fit.
The Free Zone provides investors with numerous low cost packages and attractive all-inclusive offers. It is an ideal choice for UK based investors who want to keep the company setup cost low. For AED 4,888 only a UK resident can start a new company in the UAE.
For obtaining resident visa and start living in UAE its is advisable to opt for the AED 10,800 yearly package that will provide a UAE resident visa along with the trade license.
The Ajman NuVentures has a robust company formation process and investors can get their business license in less than 2 Working Days from the day of document submission and fee payment. Hence, in a nutshell, an investor from the UK can easily incorporate a company in Dubai with the assistance of an expert Business Consultant.
The Free Zones of UAE play a vital role in bringing in more foreign investment as well as the investors to the UAE for settling down and registering the company in the country.
To know more about the special business license packages and attractive offers from the Free Zones of UAE. Connect with our expert business consultants right away!