Business Models in Dubai

If you are thinking to form your Company formation in Dubai, here are a few models, which a foreign investor can choose while setting their company abroad:

1.      Direct Sale: This involves selling products direct to consumers through emails and telephones. It is further classified into single level and multi level marketing.

2.     Offshore Company: Under this the company can set up its manufacturing business in Dubai

3.      Branch representative: This has the same function as those of its parent company. But is however liable to the laws in Dubai.

4.      Limited Liability Company: An LLC is similar to how any listed company functions. The only difference is that 100% ownership of the company is not permitted as per the Commercial Companies Law or CCL. A foreign investor can only hold 49% of the equity; the remaining 51% is to be held by a UAE national.

5.     Special Free zone Investment: This involves setting your business in the Free Trade Zones in Dubai.

 Each of these business models has their own characteristics and benefits. The most suitable and beneficial model for an entrepreneur is to set up their business in the Free Trade Zones in Dubai. This gives you the advantages of:

·         Complete ownership of the enterprise

·         Import and export tax exemptions

·         Complete Return of capital and profits

·         No currency restrictions

·         Corporate tax exemption for 15 years, renewable for an additional 15 years

·         No personal income taxes

There are a total of 35 Free Zones in UAE of which 20 are located in Dubai, which is considered to be a business hub.  It is however recommended that you contact a consultant beforehand as it makes thing a lot simpler. One of the renowned consultants you can refer to is GISUAE, which provides free consultancy and aids you in establishing your companyin the UAE free zones in the easiest way possible.