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on October 17, 2024
Read Time: 7 Minutes
You might have heard more than a few positive things in recent years about the credentials of the United Arab Emirates (UAE) as a business destination. Indeed, Dubai – both the city and the wider Emirate – has been a key part of this conversation.
Dubai is just one of the seven emirates – or municipalities – that make up the UAE, with the others being Abu Dhabi, Sharjah, Ajman, Fujairah, Umm al-Quwain, and Ras al-Khaimah.
The Emirate and city of Dubai, though, have become ever-more alluring to entrepreneurs and businessowners from around the world for a number of reasons. At a time when the outlook for businesses in the UK is looking uncertain – a new Labour Government having recently come to power, and looking set to potentially increase capital gains tax and inheritance tax – you might be receptive as an entrepreneur to establishing a presence beyond British shores.
In this article, then, our specialists in immigration law have taken a closer look at the merits of Dubai as a place to expand a business. In the process, we have also set out why and how, here at Cranbrook Legal, we have been supporting people to make this transition.
When most people today think of Dubai, they are likely to be immediately put in mind of a gleaming metropolis, characterised by sun-drenched beaches, glass-fronted skyscrapers, and the various trappings of a luxury lifestyle.
This widely held perception of Dubai has been furthered by social media influencers and other digital entrepreneurs through the years. However, there is also so much more to the city than a glitzy image.
You might be tempted to put down foundations as a businessowner here, even if you continue to maintain a presence in the UK or elsewhere, for reasons like the following:
Long gone are the days when Dubai’s economy was principally oil-based; today, it is very much a modern, service-based one.
Underpinned by world-class infrastructure and a steadfast commitment to innovation, the Dubai economy has strength in a variety of sectors, encompassing the likes of finance, technology, healthcare, logistics, and real estate.
Dubai’s position in the southwestern corner of the Arabian Gulf places it at a global crossroads linking the East with the West.
Alongside this, Dubai boasts highly sophisticated transport infrastructure that has received considerable investment in recent years, including such sites as Dubai International Airport and Jebel Ali Port, which are among the world’s busiest airports and seaports respectively.
Clearly, then, as a businessperson with a presence in this part of the UAE, you will feel strongly connected to the broader corporate world.
In many other parts of the world such as the UK, worries have intensified about the crippling tax burden that many entrepreneurs and organisations now face.
By contrast, Dubai has some of the world’s lowest taxes, with no personal income tax, value-added tax (VAT), capital gains tax, or withholding tax to pay.
Although a corporate tax for companies was introduced – at a rate of 9% – in June 2023, free zone small and medium-sized enterprises (SMEs) are still able to qualify for a 100% tax exemption. So, as a business owner here, you will be able to keep more of your profits, some of which could be reinvested in your company.
Not only have recent reforms made the local visa regulations easier for overseas nationals to navigate, but Dubai also now permits 100% foreign ownership of businesses in various sectors.
Prior to this, it had been mandatory for investors from other countries to have Emirati partners. In fact, it was formerly necessary for an Emirati national to own 51% of a given foreign national’s company.
Today, it is an especially straightforward process to officially open a business in a Dubai free zone. However, depending on your needs and priorities, you might also consider starting a business anywhere on the mainland UAE or offshore.
21st-century Dubai is widely recognised for the dynamism of its business community, aided by the sheer variety of business events and conferences taking place right through the year.
Almost regardless of the industry or sector in which you have aspirations, you will struggle to find as many ambitious entrepreneurs and businesspeople in one place as you will encounter in Dubai.
Dubai is a city where many of the most exciting global corporate innovations and trends of recent years have been especially prominent. So, as a resident and business owner here, you will be well-placed to take advantage of these developments – especially given the skilled and multilingual workforce in this part of the globe, too.
So, you are now aware of how thrilling and rewarding a place to do business Dubai can truly be. But what are some of the specific ways our experts in immigration law are helping entrepreneurs like you relocate to the UAE?
Here are a few examples:
Our team well understands that when you are contemplating the expansion of your UK business to the UAE, there will be a lot for you to think about – and to plan for.
Fortunately, our well-qualified legal experts are available to hold your hand through the entire process. From the initial stages of determining whether Dubai would be a suitable location from which to run your business, and ensuring you can obtain a visa, right through to registering and launching your business, we will help make this transition smoother and less stressful.
Immigration laws and regulations in any given country or jurisdiction don’t tend to remain the same for very long, and we can extend this sentiment to the UAE.
Our established professionals in immigration law keep up to date with the latest legal changes that may have implications for the expansion of your business activities to Dubai. Furthermore, we know how to maintain a “big picture” perspective of the immigration system in this area of West Asia, and we have a finely attuned understanding of the nuances of the process.
All of this enables us to steer you away from any potential pitfalls or mistakes as you plot a path to business expansion in Dubai. Although it can be a relatively simple process to establish a business here and relocate to the UAE, you are sure to appreciate every bit of help you can get with such steps as applying for a visa and registering your company.
The main concerns that a given prospective business owner in Dubai has, might not be the same as your own principal worries when it comes to relocating to this part of the Middle East.
After all, you may have distinctive priorities with regard to such matters as gathering the necessary documents, whether you should start a free zone or mainland company, and/or societal and cultural aspects of conducting business here.
Our professionals at Cranbrook Legal can advise, guide, and help you through all these aspects of expanding an overseas business to Dubai, and many more. After all, we have already done this for so many other clients of ours.
Yes, it is possible for a UK citizen to relocate to Dubai, so that they can live and work there. As is the case when you are seeking to move to any other part of the world, you will need to comply with the government’s requirements for prospective migrants.
You might seek to move to Dubai by getting a job there, with your UAE employer sponsoring you for a residency visa. Alternatively, you could expand or transfer your UK business to Dubai, with this pathway enabling you to obtain a UAE residency visa under your company registered in the country.
If you are interested in relocating to Dubai as a business owner, you will be able to start the formal process of securing a UAE residency visa once you have set up your company there. After you have been approved for a visa as the company owner, it will normally be possible to apply for any further visas that may be needed – such as for your family, domestic workers, and/or any employees you intend to recruit for your company.
The length of time a UK citizen can remain in the UAE, will depend on the specific visa type they have. Entrepreneurs and investors, for example, can obtain a UAE residence visa valid for five to 10 years with a business investment of AED 500,000 (approximately £102,000).
The possibilities for an enthralling new life in Dubai – on a both personal and professional level – are considerable. However, it is also of critical importance that you are well-informed and suitably prepared to navigate the immigration system in this enterprising part of the Middle East.
To learn more about how the Cranbrook Legal team can assist with your business expansion or relocation from the UK to the UAE, please give us a call on 0208 215 0053 today. You are also welcome to complete and submit our online contact form to arrange a free consultation.
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