UAE has become a well-established hub for company formation among entrepreneurs from around the world. The cosmopolitan environment and thriving economy, coupled with simple and transparent business setup procedures, make UAE an optimal destination for ambitious businesspeople.
In recent years, UAE has become the golden child for company setup among business-savvy residents of Saudi Arabia. As a result, many KSA residents are interested in learning about how they can start their business in Dubai.
Why KSA Residents Should Consider Company Formation in UAE
There are plenty of reasons why KSA residents should consider company setup in Dubai. Not only does UAE offer a wide range of business opportunities and economic growth prospects, but recent operational changes have made it a more suitable option for business setup. Here are the top reasons why:
- Lower Taxation in Business Setup in UAEThe income tax and corporate tax rate in UAE is 0%, while value-added tax (VAT) is at a mere 5%. On the other hand, recent changes have increased the VAT rate in Saudi Arabia from 5% to 15%. This triple increase in KSA has made UAE a more viable option for the company formation of Saudi entrepreneurs.
- More Company Formation Options in UAEDubai offers a considerable amount of flexibility in its business setup options. KSA residents can opt for the mainland, offshore, or free zone company formation in UAE, each of which provides its own unique features and benefits. The setup procedures for each type of company setup is straightforward and transparent, making it extremely easy for foreigners to start their own firms.
How KSA Residents can Form a Company in UAE
The steps for the business setup for KSA residents is simple. If you are a resident of the Kingdom of Saudi Arabia and are interested in putting your brains towards a brand new company set up in Dubai, then the steps are simple:
- Decide on a Business Activity for SetupThe first step is to determine the nature of your company. Dubai offers comprehensive business setup benefits in different free zones. Therefore, research thoroughly into the feasibility of each type of business, and the best type of business formation for each type.
- Choose a Type of Business for Company SetupUAE offers three opportunities for company formation; mainland, offshore, and free zone.
- Mainland companies allow business activities to take place without any territorial restrictions but require a UAE national to act as a local partner with at least 51% shares, or as a local service agent.
- Offshore companies are a type of business setup in UAE that allows business activities to take place outside of the jurisdiction. It is a separate legal entity with limited liability.
- Free Zone companies are a unique type of company that provides complete ownership to foreigners and a tax-free environment. However, businesses operating in a free zone cannot business activities in the mainland.
Therefore, weigh the features of each type of business carefully and determine which one is best, according to your nature of business and personal requirements.
Consult a Company Formation Firm
For the easiest business setup experience, consult with a specialized company formation firm. A company set up agency can walk you through the entire business setup processes and legal procedures, and provide expert businesses to ensure that your business runs smoothly. In addition, a specialist agency will be up-to-date with the latest information for KSA residents, to ensure that your business setup is in accordance with the latest laws and regulations.
Start Your Business in Dubai Today!
Therefore, UAE is an incredible destination for the company set up for residents of KSA. The benefits and opportunities are numerous. Therefore, it is definitely worth considering starting your own business in the UAE, the land of opportunities.
IBG Consulting is the leading agency for company formation in UAE. We will take care of all the legal procedures and requirements, so that you can easily start running your business in no time, with minimal stress. Contact us now for more information!