Factors That Encourage Dubai Company Formation

By Author: Edmund Brunetti
Total Articles: 733
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Dubai can be a very viable business destination for International entrepreneurs who are looking to expand their Business operations in the Middle East. In order to tap new markets in other countries it is crucial for all companies to gain to good understanding of the economic climate and the policies of regulation adopted by that particular country.

This is very important because companies need to devised business strategies based on the existing laws and policies framed by the country. This will provide vital information that would help the company to assess and speculate on the chances of success before setting up operations. In that regard, Dubai presents its investors with attractive options to set up business operations in the country.

As per government policies, companies are presented with seven options to enable business set-ups in Dubai

* Joint Liability Company (general partnership)

* Private unlimited company

* Private joint-stock company

* Public joint-stock company

* Simple commandite/liability company

* Limited liability company

* Share commandite ...
... company

Investor friendly climate of the country

In order to enable Dubai company formation, the government has taken several steps to encourage investors to set up business units on their soil. These include business incentives for investors, which is available along with low cost energy to encourage company formation in Dubai. Companies also have access to quality communications infrastructure and the availability of cheap labor further helps to conduct a successful business setup in Dubai.

Following a decree adopted by the UAE, it has become possible for investors to invest in Dubai company formation with no specific minimum capital requirements. These are very beneficial to medium and small companies as it negates the need to have access to huge pool of capital.

Advantages to carrying out business operations in Dubai

Apart from those businesses that function entirely on the free trading zone, other corporate entities need to include local participation in their businesses. This makes it possible for local executives to claim for equity in foreign enterprises that is interested in a company formation in Dubai.

As a result, many foreign investors tend to start their business operations in Dubai free trade zone. At the same time, companies that deal in the free trade zone in Dubai have obligations that they need to fulfill with the government.These companies need to bring in foreign currency for the government.

These companies also need to adhere to the business laws laid down by the government. In fact, each industry has its own sets of laws that the enterprises need to abide by. For instance, a real estate promoter has to be familiar with the laws laid down by Dubai Land Department and Dubai Real Estate Regulatory Authority if he is interested in a company formation in Dubai. Apart from this, there are some rules foreign investors must adhere to while plying their trade on the free zone in Dubai. They cannot not make investments as a third party and cannot do businesses like insurance or banking.

Some of other advantages that foreign investors can enjoy while carrying out business operations include low import duties, no restriction on capital repatriation, cheap labor, and secure conversion of UAE currency, booming business market and lack of personal or corporate taxes.

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