Questions You Should Ask before Moving Your UK Business to Dubai. The United Kingdom is home to a number of new businesses. However, the market there is quickly getting saturated, leading to entrepreneurs looking for new places to shift their businesses. One common choice among the top industry players is often Dubai.
Most commonly, the amenities offered by Dubai’s government are the main reason for such a decision. If you are not well-versed in the shifting process, this blog is a great guide to follow. Here you will find a checklist that you can keep in mind to ensure a more effective and organised shift.
Which Company Structures Should You Choose?
The first thing you need to decide before even considering a business setup in Dubai is what structure you should follow. Dubai mainly offers two kinds of company structures you can choose from free zone and Mainland Company. Here are a few details you should know about both.
Free Zone Company
If you are a start-up or want to maximise perks and incentives, the free zone company structure makes more sense. The government incentivises free zone companies to increase entrepreneurism among the masses. You can enjoy benefits like zero tax, limitless trading licenses, and more. All these incentives are designed in a way to accentuate your company’s growth.
Mainland Company
A mainland company structure is a better choice if you want to trade locally in Dubai. However, there are some limitations to such a formation. A mainland company is always an LLC and requires a local sponsor who has at least 51% of company shares. This can significantly impact your personal profitability. In addition, you also miss out on a few incentives from the government.
What Documentation Do You Need?
Setting up a company in Dubai always requires some rigorous paperwork. Failing to comply with the required documents can deteriorate your chances of actually getting a license to trade. Similarly, the documentation you should provide as a part of company formation from UK usually includes the following:
- Company Setup Application
- Detailed Business Plan
- Direction, general manager, and ultimate beneficial ownership passports
- Attested legal company of UK company (where needed)
Visa to Acquire
If you are planning on living in Dubai and running your business, you need a UAE Residency Visa. You can only start applying for a residency visa once your company is all set and ready. With appropriate documentation, getting a UAE Visa is not too complicated. Once the owner has their visa, only then can they start applying for their family and employees.
Can You Open A Bank Account In Dubai?
Running a business in Dubai but having your bank account in the U.K. can be a serious issue. For efficient functioning and workflow, you need to have a bank account in Dubai, and once you have transferred your company successfully, the Dubai government allows you to create one. To open your corporate bank account, you will also need a residency visa.
There are certain forms all shareholders, authorised signatories, and general managers will have to sign as well. You will always have to adhere to a minimum balance in your account and pay a nominal banking fee. To successfully open a bank account in Dubai, you need to submit the following:
- Documentation like the Company’s house details, certificate of incorporation, Articles of Association
- Your UAE business documents like the certificate of incorporation, Articles of association, trade license, and Memorandum.
- ALL Ultimate Business Owner and shareholder details, along with copies of their visas, passports, bank account statements, and utility bills.
Can Your UK Business Run Locally In Dubai?
Another question business owners have if their business is allowed to trade locally in Dubai. This depends solely on the type of business you are running and where it gets registered.
For instance, if you are set up within a free zone, you can operate internationally as well as in the jurisdiction of the free zone. Nevertheless, if you are looking to trade inside Dubai’s local market, it is best you set up your company or at least one of its branches on the mainland.
With the information present in this blog, you can now make a much more well-informed decision. If it’s still a bit confusing for you, you can always seek help from professional companies like Business setup Dubai. They have been a part of this industry for several years and have helped hundreds of companies shifted their business to Dubai Successfully.
With their expertise and experience, you will have no problem building your business from the ground up in Dubai. Rest assured, building your company in Dubai can have a lot of positive implications to it when done correctly.