How long does it take to get a Dubai Trade License?
Once you have decided on which Free Zone to register with, you need to gather and supply all your documents – there are a lot of them! However, it’s a fairly efficient and quick process and company formation can take as little as two weeks or even less.
Also, it’s important to remember that you don’t need to be in Dubai for company formation – it can all be done remotely. However, you can’t open up a business bank account without a personal Emirates ID – and for that, you must be in Dubai.
Now you can book your flight to Dubai (preferably Emirates Business Class – it’s a business expense after all! 😉)
Step 2 – Apply for Dubai Residency Visa
Once your company is formed, you will be granted an e-visa. When you book your trip to Dubai to complete the rest of the process, you will enter the UAE using this e-visa. Upon completion of your medical examination and the issue of your medical certificate, your e-visa will be converted into a Residence Visa.
Book a Medical
On arrival in Dubai, the first thing you need to do is to book a medical. Here, they will take an X-ray and do a blood test (to test for HIV). A valid medical certificate is required to apply for your Emirates ID.
You can book your examination at a medical centre like Smart Salem Centre. I would recommend booking an appointment, but it’s possible to walk in and get it done. I visited the centre in the City Walk area, but there is also one near DIFC, close to the typing centre (see next section).
There are two options for your medical examination: normal and VIP.
It takes 24 hours to get a medical certificate using the normal service, but only 30 minutes using the VIP service. The normal service costs around AED 400 and the VIP service is around AED 750. I went for the VIP option so I could get everything done the same day and speed up the process of getting my Emirates ID during my short stay.
Once you have your certificate (it will be emailed to you), you must send it to the free zone authority to complete the application for your residency visa. Then, you must attend a ‘typing centre’ to apply for your Emirates ID.
Step 3 – Apply for Emirates ID
An Emirates ID is required to do anything in Dubai – from opening up a bank account to getting a local SIM to renting an apartment. You won’t get far without it!
Once you have your medical certificate, go to a typing centre to complete this application. The typing centre I used is called ATI Solutions in the DIFC. This one is convenient if you are also having your biometrics done close by.
At the typing centre, they will ask for the following:
- Medical certificate
- E-visa
- Digital passport photo (studio quality)
- Local address and number for the delivery of the Emirates ID
If you don’t have a good enough passport photo of you on your phone, then you can head to a place called DESCO to get a good quality photo within minutes. There are many of these around, and lucky for me there was one in the same mall I was in to do the application!
When completing your application, they will ask for a local phone number (they won’t accept international). As such, make sure you take a free tourist SIM which is normally given out at the airport and take a spare phone with you that you can put it in. If you don’t get one at the airport, then head to the Du phone shop in Dubai Mall where you can get one (other Du shops don’t offer it).
The application process takes around 20 mins and costs around AED 400. Once your application is submitted, you will get a paper copy and can head off to have your biometrics done to complete the process.
Step 4 – Get your Biometrics done
The next step of the process is to have your biometrics done i.e. finger and thumbprints – of each finger and thumb you have! I did this in Dubai Mall at a company called DIFC Services.
When you arrive there, you take a ticket and join the waiting queue.
If you want to get it done faster, arrive early morning and avoid lunch times, as the officials normally go for a full hour-long lunch break. I arrived just before lunch, so I had to wait an hour. However, it wasn’t too bad as the mall has lots of places to go and grab a bite or coffee.
Once your fingerprints are submitted, you will receive an email update as the application is going through the motions from the government department known as the Federal Authority for Identity, Citizenship, Customs and Port Security. The email will come from ICP Smart Services.
The steps are normally:
- Application in process
- Application approved
- Card being printed
- Card being dispatched
Once you get to the last stage, you’ll hear from a courier by text or WhatsApp to arrange delivery to your local address. You need ID to take delivery of your Emirates ID, so you need to be there in person.
How long does it take to get an Emirates ID?
You should receive your Emirates ID in 5-8 working days (remember, Friday is not a working day in Dubai). I was lucky as mine took six days, from the day of application to the day I received it. But ideally, allow eight working days if you are just coming to Dubai to complete the process and then heading back home.
Step 5 – Open up a Business Bank Account in Dubai
You now have your Emirates ID – hurrah! Once you have this in hand, you can set up a personal and business bank account. There are many banks in Dubai, from local ones like Emirates NCBD and RakBank to international banks like HSBC. Usually, to open a bank account, you have to go into a branch to complete the bank’s KYC checks.
I went for an online bank called Wio Business. The set up is done via their app available on the App Store or Google Play store. I had all my documents to hand on my phone and found the process quite painless.
You’ll need the following documents:
- Your trade license
- Memorandum of Association
- Emirates ID
- Passport copy
- Shareholder resolutions (to show you have authority if more than one shareholder)
- Official ‘stamp’ on license
Tax Benefits of Setting Up in a Dubai Free Zone
One of the primary attractions of setting up a business in a Dubai Free Zone is the significant tax advantages:
- 0% Income Tax for individuals
- 0-9% Corporation Tax (0% for qualifying businesses below AED 375,000 profit threshold)
- 5% VAT
Cost of Setting Up in Dubai
Based on our experience helping clients set up in Dubai, here’s a breakdown of costs you can expect when setting up a company in Dubai:
- Trade license: From AED 15,000-30,000 annually
- Visa costs: From AED 4,200 per person plus additional fees for visa allocation
- Emirates ID application: From AED 400
- Medical examination: From AED 400-750
- Office space: Usually included in license fee for shared facilities
- Compliance costs: Annual audit requirements fee
The total amount will depend on the requirements of your business and the visas associated with it.
Summary
I was lucky and was able to register my company in Dubai in 10 days. However, I was well-prepared and opted for the VIP fast-track options available. To leave room for error, it’s wise to allow at least 14 days in case there are any unexpected delays in the process.
If you’re serious about moving to and running your business in Dubai, then book a call with Capture Accounting. We can talk you through the benefits and give you advice based on your goals and personal circumstances. Brendan, our expert Dubai consultant, will happily answer all your questions and save you research time!
While it’s not quite the tax-free haven it once was, Dubai still presents a lot of opportunities for influencers to save money and gain more exposure.
But before you pack your bags, it’s essential to understand your tax position to see if your new life in the sun is financially viable. One of the key taxes to get your head around is VAT.
The VAT threshold in Dubai is AED 375,000, and it is charged 5% for most goods and services throughout the UAE. Cross-border transactions are exempt from UAE VAT, but it’s vital to comply with the VAT rules of your customer’s country.
That is very much the short story! UAE VAT legislation is a complex area. Let’s take a look at the facts in a bit more detail to help you understand your VAT obligations and make a more informed decision about a potential move to Dubai.
To apply for a personalised consultation, drop us a message at Capture Accounting. Whether you’re a social media influencer, a YouTube content creator, or an online entrepreneur, we can offer specific tax advice and accounting services to help you establish your business in Dubai.
Is there Value Added Tax (VAT) in Dubai?
Dubai is one of more than 160 countries worldwide that have embraced the concept of VAT. The standard VAT rate in the UAE is 5%. This means that when you buy goods or services at any point in the supply chain, there’s an extra 5% added to the price, and this 5% goes to the government as tax.
Dubai introduced VAT in 2018, marking a significant shift in the financial landscape. It forms part of the UAE’s wider vision of building a more sustainable and economic future. By contributing to public funds, tax-registered businesses play a crucial role in supporting the development of essential services and infrastructure.
So, while nobody enjoys the hassle of VAT, there are significant savings to be made when compared to the UK, and it’s all for the greater good!
Who has to pay VAT in Dubai?
As an influencer, you are required to register for VAT if your annual earnings meet the minimum annual turnover requirement of AED 375,000.
There is also a voluntary registration threshold set at AED 187,500. Voluntarily registering for VAT allows you to benefit from input tax, i.e. claim back the VAT you pay on taxable supplies for your business.
How does VAT work in Dubai?
Value Added Tax (VAT) is a general consumption tax added to goods and services. It’s a type of indirect tax that essentially puts the business owner in the position of tax collector. In Dubai, consumers pay 5% VAT, which VAT-registered businesses collect and pay to the government.
As an influencer doing business in Dubai, it’s essential to understand a few key points about VAT in the UAE:
Collecting VAT – VAT-registered businesses need to charge domestic customers (that is, customers within the UAE) an extra 5% on top of their product/service prices.
VAT refunds – The good news is you can also reclaim the VAT you paid when you purchased goods and services for your business, known as ‘input tax’. For example, if you spent AED 500 on video equipment, you could potentially get AED 25 (5% of AED 500) back as a VAT refund.
Filing VAT Returns – As a registered business, you’ll need to file regular VAT returns to the Federal Tax Authority (FTA). This involves summarising your sales and purchases, calculating the VAT you’ve collected and paid, and settling the difference.
What types of goods and services are subject to VAT in Dubai?
VAT in Dubai is applicable to a wide range of goods and services. From digital products like e-books and online courses to physical goods like electronics and clothing, almost everything is subject to VAT.
Additionally, services such as consulting, advertising, and entertainment are also included.
What are the VAT exemptions?
Some goods and services in the UAE are VAT exempt, like certain healthcare and financial services. As an influencer in Dubai, however, all of your services and products supplied to customers within the UAE are likely to be subject to domestic VAT.
And here is a crucial thing to understand – the concept of domestic VAT, i.e. VAT added to the value of goods and services within the country you are operating.
If operating outside Dubai/UAE, for example, selling training plans or apps to customers in Europe, these services/goods are exempt from domestic VAT.
However, there is a common misconception that cross-border transactions are exempt from VAT full stop – not true! Just because they’re not liable for UAE VAT, you must still comply with the other country’s VAT laws.
When it comes to e-commerce, countries that employ VAT usually have distance selling thresholds. These thresholds determine when a business needs to register for VAT in the customer’s country instead of applying their own country’s VAT.
So, when trading outside of the UAE, once your business’s total sales to customers in a particular country exceed the distance selling threshold of that country, you need to register for VAT in that country and comply with its VAT rules.
Since 2021, the threshold across the EU is set at €10,000, but it varies in other countries. In the UK, for example, it’s £90,000. So it’s essential to get professional advice if you are unsure what those thresholds are, to avoid falling foul of VAT laws.
At Capture, we heartily recommend using Stripe when trading globally from Dubai. The Stripe Tax tool automatically calculates and applies the appropriate VAT rate based on the type of product/service, the location of the business and the customer.
How do you become a VAT-registered business in Dubai?
If your annual earnings exceed the threshold of AED 375,000, you’ll need to register for VAT.
First, hit the FTA website, fill out the VAT registration form, and attach the necessary docs like your trade license visa and accounts records.
From there, just await the green light. Once you’re approved, you’ll get a certificate with a tax registration number. Then it’s a case of tweaking your pricing and issuing tax invoices for each taxable supply.
You must keep accurate records, including the VAT you pay on taxable supplies for your business, and file regular VAT returns.
Do I need an accountant to do business in Dubai?
Not technically, but you’d need to be a total financial guru and prepared to spend a LOT of time on accounting! Given the complexity of VAT and the new Corporation Tax in Dubai, not to mention the legalities of leaving the country, it’s a no-brainer to hire a professional accountant in both the UK and Dubai.
Better still, get the advice of a specialist influencer accountant, like Capture Accounting. We understand the nuances of your business and are experts when it comes to UAE tax law. We can help you to understand your tax position, set up accounting procedures and ensure you stay on the right side of the Federal Tax Authority.
Is setting up a digital business in Dubai right for me?
When considering moving your influencer business to Dubai, a cost vs. benefit analysis is crucial. That’s why it’s essential to talk to a specialist accountant, who can help you weigh up the associated costs, e.g. trade visas, accountancy costs, and cost of living, against the potential tax benefits.
As a rule of thumb, we advise that it’s only worth making the move to Dubai when you start earning more than £200,000 a year.
Talk VAT and Dubai with Capture Accounting
We hope you’ve found this article helpful, but no doubt you have a million questions about your own situation. If so, fill out our form, and we’ll be in touch to arrange a callback.
FAQs about VAT in Dubai
What are the VAT penalties in Dubai?
Dubai has some pretty steep penalties when it comes to adhering to VAT rules. You must make sure you register for VAT if your income exceeds the threshold, or else face an AED 10,000 fine. Late and incorrect VAT returns are also punishable by incremental amounts, starting at AED 1,000.
Always ensure you adhere to the VAT regulations of the country your customer is based in, or else you will be subject to that country’s VAT penalties.
Is Dubai tax-free for Brits?
Operating in Dubai is not as tax efficient as it once was, with the introduction of VAT in 2018 and the imminent introduction of Corporation Tax.
However, there is no personal income tax in the UAE, meaning that there are significant savings to be made by moving your influencer business there (if the benefits outweigh the costs, of course).
What does ‘mandatory registration threshold’ mean?
The mandatory registration threshold in Dubai is AED 375,000. That means when your earnings exceed this amount within the 12-month tax period, you must register for VAT or face a hefty fine.
What does ‘voluntary registration threshold’ mean?
Businesses in Dubai can opt to register for tax voluntarily before they hit the mandatory threshold.
The voluntary VAT threshold is AED 187,500, so you can register as soon as your income exceeds that amount. Voluntarily registering for VAT allows you to claim back the VAT you pay on taxable supplies, so it can present valuable cost savings for some businesses.
Dubai, with its towering skyscrapers, sun-soaked beaches and luxurious lifestyle, has emerged as a sought-after destination for influencers and digital entrepreneurs. In addition to the city’s exotic appeal, there are compelling business and tax benefits.
The advantages of starting an influencer company in Dubai include:
- Strategic location
- No income tax
- Competitive rates of Corporation Tax and Small Business Rate Relief
- A business-friendly environment and excellent infrastructure
- Networking opportunities and entrepreneurial culture
- A hub for influencers
These are just some of the reasons that setting up a UK company in Dubai is such an enticing choice. In this blog post, we will delve into these benefits and weigh up the cons to help you make an informed choice about a future in Dubai.
For specialist advice on influencer accounting, drop a message to us at Capture Accounting. We’re here to help social media influencers, YouTubers and all kinds of digital entrepreneurs to establish a bright future in the UAE.
Is Dubai a good place to start a social media influencer business?
Undoubtedly. Dubai is an excellent place to start a business due to its strategic location, business-friendly environment, world-class infrastructure, tax benefits, diverse market opportunities, government support, and strong networking community.
Dubai’s position as a global hub, coupled with a supportive ecosystem, makes it an attractive destination for entrepreneurs seeking to establish and grow their influencer businesses.
How can a UK business benefit by setting up in Dubai?
#1 Tax savings
Dubai is a very tax-efficient location for UK businesses, despite the introduction of Corporation Tax and VAT (link to Dubai VAT article when published) in recent years. For one, there is no personal tax, allowing you to keep hold of more of your profits. For UK citizens paying the higher rate of income tax at 40%, this is obviously very appealing!
The rate of Corporation Tax in Dubai is just 9% compared to 25% in the UK, and there are generous exemptions in the form of Small Business Rate Relief (if your turnover is less than AED 3,000,000). This can provide a significant financial advantage, allowing you to reinvest your earnings and grow your business.
#2 Business-friendly ‘free zones’
UAE free zones are designated areas, often near ports or airports, where businesses can operate with unique benefits, such as tax exemptions and simplified regulations. This initiative is aimed at encouraging business activity, international trade and investment.
Dubai has several free zones strategically located across the city, including popular ones like Dubai Airport Free Zone (DAFZA), Dubai Media City and Dubai Internet City.
Compared to establishing a mainland company, setting up a free zone company in Dubai provides distinct advantages. Perhaps the most significant benefit is the ability to have 100% foreign ownership, which offers greater control and decision-making authority.
Free zone companies enjoy tax incentives, including exemptions from corporate and personal income taxes for a specified period, providing substantial cost savings.
Free zones also offer access to state-of-the-art infrastructure, advanced facilities, and networking opportunities within a diverse business community.
Additionally, the company setup process in a Dubai free zone is typically faster and more streamlined compared to the mainland, enabling foreign entrepreneurs to start operating more quickly.
#3 Strategic location
Dubai is at the crossroads of Europe, Asia, and Africa providing a golden opportunity for a UK business to broaden its reach and impact. The city’s accessibility as a major international travel hub allows you to easily collaborate, network, and engage with followers and potential partners from across the world.
Dubai’s growing influencer community is a melting pot of creativity and innovation. Whether you’re in sport, fashion, lifestyle, technology, or any niche, Dubai’s location can empower you to connect with customers, followers and partners on a global scale and grow your revenue streams.
#4 Entrepreneurial culture and infrastructure
Dubai’s pro-business policies and dynamic business ecosystem create a welcoming and nurturing environment for UK entrepreneurs.
Government initiatives such as free zones, start-up support, instant licenses, and specialist licenses (such as the e-commerce license) are designed to attract foreign investment, making it easier and more efficient to establish a company.
Disadvantages of setting up a business in Dubai
#1 Unfamiliar regulations
Navigating unfamiliar regulations in Dubai can be challenging for UK business owners. There are strict tax penalties that could land you with a significant fine or even see your trade license revoked. However, with professional advice, preparation and understanding, you can navigate your way through it.
Here are Capture’s key tips for success:
- Research and seek professional advice from a specialist influencer accountant.
- Understand the legal business structure options available to you and carefully evaluate which structure best aligns with your goals.
- Get on-the-ground accounting support in Dubai as well as in the UK and engage with the UAE authorities to build positive relationships.
- Communicate with locals and learn from the community around you. Dubai is a hub of influencers like you, so use their experience to learn.
#2 Cost of living
The cost of living in Dubai is generally considered high, reflecting its status as a luxurious city with a vibrant economy. Accommodation tends to be the largest expense, and dining out can be expensive.
Utilities, transport and services are generally affordable, but healthcare costs, especially for expatriates without comprehensive insurance, can be substantial.
However, it’s worth noting that Dubai offers a range of options to suit different budgets, and with careful planning and budgeting, it is possible to manage the cost of living and find affordable rent.
How do you set up a business in Dubai?
You’ve done your market research and have a strong business plan, so what’s next in your journey to starting a business in Dubai? Here are just some of the steps you need to complete before you can begin trading.
Legal structure – choose the appropriate legal structure for your business, e.g. sole proprietorship, partnership, LLC (Limited Liability Company), or a free zone entity.
Trade name reservation – reserve your business name through the relevant authorities to ensure it’s available for registration.
Trade license application – apply for the appropriate business license based on your business activities and chosen legal structure.
Location – determine your business location – whether in a free zone, mainland, or another suitable area.
Submit documents – prepare and submit the required documents, including your business plan, legal documents, and business license application forms. If you’re setting up an LLC, then you’ll be required to submit a Memorandum of Association (MOA) and Articles of Association (AOA) to include details of the company’s Ultimate Beneficial Ownership (UBO).
The ultimate beneficial owner is the individual(s) that controls the company assets and benefits from the company’s income.
Register with the Federal Tax Authority (FTA) – if your income is likely to exceed AED 375,000, you must register for VAT (Value Added Tax) and comply with tax regulations. Read more about the VAT rules in Dubai.
Open a corporate bank account – to run a business in Dubai, you must open a business bank account to manage all of your transactions. It may be more efficient to have separate bank accounts for AED and £ sterling.
Get help with setting up your business in Dubai with Capture Accounting
Capture Accounting deals with many social media influencers thinking of moving to the United Arab Emirates. Our experience allows you to navigate the challenges of the move from setting up your business in Dubai to Corporate Tax and VAT. For advice on your particular situation, book a short consultation, or start a live chat.
Conclusion
In conclusion, setting up a business in Dubai as a UK national offers numerous advantages. Most significant are the tax advantages – there is no income tax, and there is generous Small Business Rate Relief on corporate tax.
Dubai’s strategic location provides access to global markets, and the business-friendly environment of free zones have superb infrastructure to nurture new businesses. For influencers, there is a vibrant business community offering networking and collaboration opportunities.
Overall, establishing a social media influencing business in Dubai as a UK national opens doors to international exposure and the potential for long-term success and growth.
Dubai attracts many foreign investors due to its tax regime and vibrant economy. It is known as the business hub of the Middle East, with an increasing number of entrepreneurs and startups setting up shop in the city. As a UK business owner, you may be wondering if it’s a viable opportunity to start a new business in the UAE or relocate your existing company.
The UAE government is supportive of foreign investment, making it an attractive option for many UK company owners. In order to set up a business in Dubai as a UK citizen, you will need to obtain a residence visa and a trade license, as well as register with the relevant government authorities in line with your business activities.
In this article, we’ll explore the process of setting up a business in Dubai as a UK citizen, what you need to know before taking the leap, and how Capture Accounting can help you navigate the process.
Dubai is particularly popular with influencers right now due to its high-end lifestyle and Insta-friendly locations. UK influencers are starting to take advantage of the city’s vibrant social media culture and global popularity to gain exposure and followers.
If you are an ambitious digital entrepreneur interested in setting up in the UAE, then Capture Accounting can help. Fill in our enquiry form for a quick response.
What should you do before setting up a business in Dubai?
Before you decide to set up a business in Dubai, there are several things you need to consider. It’s important to research the market to identify the demand for your product or service. Dubai has a diverse economy with a range of sectors, from tourism and hospitality to finance and technology. Understanding the market demand will help you identify the best business activity and sector to invest in.
You also need to decide upon the legal structure of your business. There are several options, including a partnership or limited liability company (LLC). Each structure has its advantages and disadvantages, depending on your business objectives.
It’s then essential to identify the cost of setting up a business in Dubai, including the cost of rent, utilities, and salaries. It’s important to budget for these expenses to ensure that your business can operate smoothly.
What is a free zone?
Its important to select the right business location when setting up in Dubai. There are several “free zones”, which are set up to promote specific economic activities, such as technology, media, or logistics.
Free zone companies can take advantage of benefits such as 100% foreign ownership, tax exemptions, and simplified registration processes.
So if you want to benefit from reduced bureaucracy, streamlined procedures, and access to a skilled workforce, then it’s important to research which free zone is suitable for your business activities.
Do you need a visa?
As a UK business owner and citizen, you will need a residence visa to set up a business in Dubai. There are several visa options, including a business visa, investor visa, or employment visa.
Each visa has its requirements and advantages, depending on your circumstances. It’s important to consult with a legal advisor to identify the best visa option for your business.
Capture Accounting works closely with a specialist in Dubai who can help you with the visa process. To get in touch, please fill in our contact form.
How do I register a company in Dubai from the UK?
Dubai offers several advantages for businesses, including a strategic location, world-class infrastructure, and a supportive government. By following the steps below, you can successfully set up a business in Dubai and take advantage of the opportunities available.
Setting up a business in Dubai requires obtaining a trade license, registering with the Department of Economic Development (DED), and obtaining a residency visa.
The process can be complex, especially if you’re unfamiliar with the local laws and regulations. However, with the right support from Capture Accounting, the process is far less daunting.
To register a company in Dubai from the UK, you need to follow these steps:
- Decide on the legal structure of your business
- Choose a company name and obtain approval from the relevant authorities
- Submit the required documents to the DED, including a business plan, passport copies, and proof of residency
- Obtain a trade license from the DED
- Apply for a residency visa from the General Directorate of Residency and Foreigners Affairs (GDRFA)
- Open a corporate bank account
How can Capture Accounting help you set up your influencer business in Dubai?
Capture Accounting is an accounting firm based in the UK that specialises in helping social media influencers and content creation businesses set up in Dubai.
As your expert business consultant, we can guide you through the process, from deciding upon the right legal structure for your business to obtaining the necessary licenses and permits.
Our services include:
- Review of your residence position to see how much tax you could save by becoming non-resident
- Advice around the formation of a company in Dubai together with a comparison of costs between Mainland and Free zone companies.
- Assisting you with company formation and obtaining a visa and holding your hand throughout the process.
- Tax and accounting services covering both your UK and UAE requirements.
To see if we’d be the right fit for you as you start your new venture in Dubai, please get in touch to apply for a callback.
Watch our exact process of getting a company set up and obtaining a VISA, we documented our own journey of setting up Capture Accounting Dubai:
Conclusion
UK businesses, including social media influencers, can set up a business in Dubai, but it requires careful planning and execution. It’s essential to identify the legal structure of your business, research the market, and budget for the expenses involved.
Working with a trusted advisor, such as Capture Accounting, can make the process easier and ensure that you comply with local laws and regulations.
FAQs about setting up a business in Dubai
To learn more about setting up a business in Dubai check out our frequently asked questions below or contact us today:
Should your business bank account be registered in Dubai?
Yes, it’s advisable for UK citizens to open corporate bank accounts in Dubai as part of the business setup process. Having a local business bank account for your new company makes it easier to manage your finances and pay suppliers and employees.
It’s important to note that some banks require you to have a trade license before opening a company bank account, while others require a minimum deposit.
If your business operates as a free zone company, it is essential to understand that each free zone has a different relationship with banks. You must also ensure you comply with central banking regulations.
Depending on which bank you choose, it could take anywhere between 2 days and 2 weeks to set up – again we can help you decide which bank would be best for you depending on your business activities and requirements.
What is the difference between a trade license, business license and commercial licence?
A trade license is a permit that allows you to conduct business within a specific trade, such as construction, retail, or tourism. It’s issued by the Department of Economic Development and is valid for one year.
A business license, on the other hand, allows you to operate a business in a specific location. It’s issued by the Dubai Municipality and is valid for three years. Depending on the nature of your business, you may need both a trade license and a business license.
A commercial license grants permission for companies to conduct various activities that involve manufacturing, wholesaling, managing, importing and exporting goods across the UAE.
Do I need to reside in Dubai to manage my business?
You don’t need to reside in Dubai to manage your business but if you remain UK resident, then you would not benefit from any of the tax advantages that being Dubai resident has. This is because you are taxed where you are resident for tax purposes. That said, if you are planning on being resident in another country which is also a lower tax jurisdiction or does not tax foreign income such as Bali, then you can still take advantage of the tax breaks that Dubai offers.
This is a complex area and requires consideration of other countries’ tax laws together with double tax treaties that exist between countries which govern which country has ‘taxing rights’ over any individual. At Capture we have UK national clients that reside in countries all over the world including Bali, Malaysia, Portugal, Singapore, Cayman Islands and others. As such, we are aware of the issues involved and have accountant contacts worldwide that allow us to provide a full holistic service to our clients who wish to operate in different countries or as digital nomads.