Are you an Irish Business Owners Looking for Company Formation in Dubai?
Dubai has developed into a vibrant international commercial centre that offers a variety of opportunities in a variety of fields and sectors. Dubai has a lot to offer Irish business owners, including total foreign ownership, no taxes, and freedom from customs fees. All these are researched every year by thousands of Irish entrepreneurs looking for company formation in Dubai.
Over 10,000 Irish citizens are currently officially residing in the Emirates as a result of the recent significant growth of the Irish community there. In total, there are 150 additional Irish companies that export and another 60 that have physical locations in the UAE.
The vibrancy of the Irish community in the UAE is reflected in the very active Irish societies, GAA clubs, and business networks in the UAE.
Types of Trade/Business Licences in Dubai and Location Options
Securing a business licence is imperative when establishing a business in the UAE. Dubai offers a diverse array of licence types, encompassing industrial, commercial, crafts, tourism, agricultural, and professional licences. In this discussion, we will place our focus on the three most commonly sought-after licences: industrial, commercial, and professional licences.
Furthermore, enterprises operating in Dubai have the flexibility to choose between two primary locations: the Mainland or a Free Zone. Each option presents its own set of advantages and drawbacks. Mainland businesses enjoy the freedom to conduct trade both within and beyond Dubai’s borders. However, they necessitate a local sponsor who holds a 51% ownership stake in the company. Conversely, free zones offer the advantage of 100% foreign ownership. Still, companies operating within free zones are restricted to trading exclusively within the zone’s confines and outside the country’s borders.
Requirements for Company Formation in Dubai for Irish Nationals:
Starting a business in Dubai as an Irish national is a straightforward process. The initial steps involve:
- Selecting your business activity from the vast array of options available in the UAE.
- Determining the legal structure for your business, whether it’s an LLC, FZE, or PJSC. This choice dictates the regulatory authority responsible for issuing your trade licence. If you opt for a free zone, you’ll directly apply to the specific free zone authority.
- Securing a distinctive and available trade name for your business.
- Compiling the necessary documents, which include passport copies, a business plan, and a Memorandum or Articles of Association (MoA or LSA),
Once your application is approved, you’ll receive your trade licence, enabling you to open a corporate bank account and initiate the visa application process for both yourself and your employees.
Relocating an Existing Irish Company to Dubai:
Given that a significant portion of the UAE’s population comprises expatriates, launching a business as a foreign entity in the country is a common practice. Moving an existing Irish company to Dubai entails specific documentation requirements, including:
- A standard company setup application.
- Passports of Ultimate Beneficial Ownership (UBO) shareholders, directors, and general managers
- Legalised and attested copies of Irish company documents.
- A comprehensive business plan.
- Two years’ audited financial reports or a certificate of reference from a personal bank.
In some cases, you may also require a No Objection Certificate (NOC) from your current sponsor. Once the entire process is successfully completed, you can leverage your business licence to establish a corporate bank account by furnishing the requisite Irish and UAE company documents.
Are there any tax considerations for Irish nationals conducting business in Dubai?
One of the primary advantages of engaging in business activities in Dubai for Irish nationals is the favourable tax environment. Dubai offers a tax-efficient framework that can be advantageous for Irish businesses. Here are some key points to understand regarding tax considerations:
Corporate Tax: Irish nationals operating businesses in Dubai can take advantage of a low or zero corporate tax rate. This provides a significant benefit compared to many other jurisdictions.
Personal Income Tax: Individuals working in Dubai and earning income from their business activities are generally not subject to personal income tax. This allows for greater retention of personal income and financial flexibility.
Value Added Tax (VAT): While Dubai has implemented a Value Added Tax (VAT) system, it’s important to note that the standard VAT rate is relatively low at 5%. Most goods and services are subject to this VAT rate. However, there are specific exemptions and zero-rated supplies in place, which can help mitigate the impact of VAT on businesses.
Double Taxation Agreements (DTAs): The United Arab Emirates has established Double Taxation Agreements with various countries, including Ireland. These agreements are designed to prevent double taxation and provide mechanisms for businesses and individuals to claim tax relief or exemptions in their home countries.
Engage Our Services for Your Business Setup Requirements:
Start Business Advisory LLC, located in Dubai, comprises a team of professionals who provide legal counsel and business services for enterprises in Dubai and the UAE. We specialise in aiding Irish businesses aiming to establish a foothold in Dubai. With our extensive expertise and experience, we are fully equipped to lead you through the entire process. From assisting in the selection of the appropriate free zone to organising the requisite documentation, we offer comprehensive guidance every step of the way. Our customised services are crafted to cater to your unique business needs, ensuring a smooth and stress-free experience when relocating your company to Dubai.
Get in touch with our team today at firstname.lastname@example.org to access support for your business setup prerequisites.