Saving tax is one of the biggest concerns and a significant factor that has helped Dubai grow. Why are people opening businesses in Dubai? Apart from being a global business hub with an important flight radius, this guide will walk you through how to set up a business in Dubai step-by-step, detailing how easy it is. We’ll cover the necessary licenses, costs, and how to secure office space in prime locations. Let’s dive into commercial real estate in Dubai.
The Appeal of Dubai for Business
Dubai is a phenomenal location for business. When you step outside your office, you might see the Burj Khalifa or Address Downtown Dubai. This community is very close to downtown, just a five-minute drive from the Emaar Sales Center. It’s a fantastic location with amenities right downstairs, including Tim Hortons, Starbucks, and various restaurants. It’s a business hub without the hassle of elevators, as it’s on a podium level.
Understanding the License Costs
Step-by-Step License Costs
- Basic Consultancy License: Around AED 10,000.
- Office Space: Costs range from AED 55,000 annually, payable in 2 to 4 installments. Fewer installments mean a lower price.
- Larger Office Spaces: About 250 square feet can cost around AED 150,000.
- For Those Outside Dubai: Starting costs are about $115,000, rising to $155,000. This includes services such as electricity, internet, admin services, meeting rooms, and common areas.
Business Models in Dubai
Several business models make sense in Dubai, such as business centers, which are viable for foreign investors, and podcast studios, another promising model. Today, we’ll focus on tax savings.
Mainland vs. Free Zone License
- Free Zones: JLT Free Zone (DMCC), Jebel Ali Free Zone, Dubai Airport Free Zone, and International Free Zone Authority (IFZA) offer cost-effective options like flexi desks but might not be seen as serious business setups. Main office spaces in Free Zones are more expensive.
- Mainland License: Generally recommended for clients looking to save taxes.
Building a Business Model
A key advantage for foreign investors is leveraging bank statements. Here’s how:
- Secure a License and Office Space: First steps in setting up.
- Build Your Bank Statements: Take 3 to 6 months to establish your financial presence.
- Combine with Off-Plan Property Model: Invest with a 50/50 payment plan, appreciate the property value, and use the rest as leverage to build your portfolio. Initial investment and capital expenditure are minimal with options like these business centers.
Moving to Dubai
If you’re considering moving to Dubai, it’s a great place with minimal initial costs. To summarize:
- Beautiful Locations: 20 offices available.
- License Costs: Around AED 10,000.
- Office Costs: Start at AED 55,000 annually for basic offices, rising to AED 46,000 for larger ones.
- Fully Inclusive: Everything included – fully fitted office, electricity, internet, and furniture.
For those needing an unmanned office primarily for tax purposes, we can discuss this via a Zoom call. We also assist with bank account opening, which is challenging post-Dubai’s removal from the grey list due to stricter AML and KYC regulations.
Main vs. Free Zone Licenses
We can discuss this in detail on a Zoom call. I generally recommend a Mainland license for clients looking to save taxes. Our in-house tax auditor will guide you on moving funds and minimizing taxes, depending on your country of origin.
Corporate Tax and Real Estate Investment
- Corporate Tax: In Dubai, it is 9% for profits above AED 375,000 per annum.
- Real Estate Investment: Tax-free. We’ll explain how to move funds from your country to Dubai for real estate investments to potentially achieve zero taxes.
Final Thoughts
Dubai is a global business hub with over 200 nationalities. In the past 2 to 3 years, we’ve opened over 400 licenses. Dubai offers a vibrant business environment, making it a great place to start a business. Every business I’ve set up here has succeeded, and investors are happy with the fast-paced life and networking opportunities.
If you’re interested, we have 20 offices left in downtown Dubai at unbeatable prices. Contact me to set up your business in Dubai. I love Dubai—save tax and thrive here. Thank you for reading.
FAQs
- What are the main benefits of setting up a business in Dubai?
- Tax savings, strategic location, vibrant business environment, and excellent infrastructure.
- What is the cost of a basic consultancy license in Dubai?
- Around AED 10,000.
- Are there tax benefits for real estate investments in Dubai?
- Yes, real estate investment is tax-free in Dubai.
- What is the corporate tax rate in Dubai?
- The corporate tax rate is 9% for profits above AED 375,000 per annum.
- Can foreign investors easily set up a business in Dubai?
- Yes, Dubai offers various business models and support for foreign investors.
