Dubai welcomes foreigners from all over the world to start a new business or expand their current operational business. There are all the positive things about moving a business from a country like Australia to Dubai, UAE. But the process can be a complex and challenging one. That is why you need to do careful planning, execution, and a solid understanding of the local market and regulations of the country. Doing so will make this relocation of business a rewarding and profitable experience for many years to come. In this article, we will provide a comprehensive guide on how to move an AU business to Dubai, UAE. Read on.
Reasons to Move AU Business to Dubai, UAE
The government will need to respond with ways to recover some of the economic stimulus money that has been spent over the past 12 months given how fragile the Australian economy is right now. There are rumors of potential tax increases in Australia. As a result, moving operations to Dubai and the UAE and paying no corporate or personal taxes is a desirable alternative for Australian businesses.
Other solid reasons to move your Australian business to Dubai, UAE are:
1. High Costs of Operating Business
Due to the high cost of living in Australia, it can be challenging for companies to maintain minimal operational costs. This covers rent, material, utility, and labor expenditures.
Australia has an extremely competitive business environment with several well-established and well-funded businesses operating across a wide range of business sectors. Because of this, it could be challenging for new companies to compete and establish themselves in the market.
3. Regulation and Compliance
Businesses operating in Australia must abide by a complex regulatory environment that includes several laws and rules. Businesses may find this to be time-consuming and costly, especially if they are not familiar with the regional regulatory environment.
4. Labor Laws and Workplace Relations
Businesses may find it hard to recruit and retain employees in Australia due to the country’s stringent labor laws and workplace restrictions. Businesses may also incur higher expenditures as a result of having to meet numerous employment, working conditions, and regulations.
5. Access to Finance
Due to Australia’s heavily regulated financial industry, it may be challenging for companies to obtain finance. Small businesses and startups may find this to be especially difficult as they might not have the necessary assets or credit history to qualify for a loan.
6. Geographical Isolation
Due to its size and isolation, Australia can make it challenging for businesses to reach out to clients and markets abroad. Due to the need for long-distance transportation of goods and services, this may also raise the cost of doing business.
7. Skills Shortage
Australia may experience a skilled worker shortage in some sectors, which can make it challenging for companies to attract and keep the people they require to flourish.
8. Government Procurement Policies
Due to the Australian government’s strict procurement regulations, it may be hard for businesses to win government contracts. This may reduce the opportunities open to companies looking to develop and grow.
9. Environmental Regulations
Due to Australia’s strict environmental laws and regulations, businesses may find it hard to operate in certain sectors, such as resource extraction and mining.
10. Climate and Natural Disasters
Natural disasters like bushfires, floods, and droughts are common in Australia. These can disrupt corporate operations and result in large financial losses. It can be quite difficult for businesses to conduct operations and maintain infrastructure and facilities due to the severe and unpredictable environment of the country.
Types of Visas for Australians Moving Their Business to Dubai, UAE
You should be aware that there are various types of visas available for Australian expats if you intend to move to Dubai.
A visa on arrival is valid for 30 days and can be obtained on arrival if you want to visit Dubai as a tourist. Here are several visas that will let you stay and work in the UAE, presuming you intend to stay a long time and move your business to Dubai. Except for student and property owner visas, all of the types of visas are quite important for you to know.
If you’re investing in a business or starting or moving your own business in Dubai, you need to obtain an investment visa. The conditions of this visa are based on your financial investment or total capital. Investors in the UAE are eligible for a 10-year residency visa with financial assets up to AED 10 million.
You will be given a work/employment visa if you have a contract for employment with a business registered in Dubai.
It is possible to apply for a freelancing visa in Dubai to work independently. Freelancer visas are available in a variety of free zone communities, including Dubai Knowledge Park, Dubai Media City, and Dubai Internet City.
The spouse, parents, or children of someone who already has a resident visa in Dubai are eligible for this additional type of visa.
- Male sponsors who want to bring their wives to Dubai must earn at least AED 4,000 per month, or AED 3,000 per month with accommodation when lodging is included.
- Residents who wish to sponsor their parents must either make AED 20,000 per year or earn AED 19,500 per month while living in a two-bedroom accommodation.
- Women who have a UAE residence visa can also sponsor their families If THEY receive special approval from the Department of Naturalization and Residency Dubai (DNRD) and earn a monthly salary of more than AED 10,000.
Those who want to enroll in Dubai’s colleges are the only ones who can obtain this type of visa. Outstanding students may apply for a five-year resident visa in Dubai if they achieved a minimum percentile of 95% on their school-leaving examinations or were enrolled in college with a minimum GPA of 3.75.
Property Owner Visa
Exclusively in Dubai, this type of visa is available to property owners. Depending on the cost of the property, certain requirements must be met to apply for this type of visa. To learn if your real estate investment qualifies you for this kind of visa, it’s a good idea to get in touch with a reliable real estate professional in Dubai. To qualify for a 5-year residence visa in the UAE, buyers must invest in a home worth at least AED 5 million, under the new procedure the UAE government established in 2019.
Benefits of Moving AU Business to the UAE
If you’re an Australian entrepreneur seeking to launch your own firm, Dubai can provide you with the boost you need to start your business. Following are some of the benefits that Australian businessmen and investors can enjoy in the UAE:
Ease of Doing Business
UAE’s government is friendly and its technology is developing quickly. Its score for business accessibility is 80.9 out of 100. As a result, establishing a business in the UAE is simple and requires little paperwork and documentation.
Extremely Talented Workforce
There is nothing better than having a huge line of qualified talent waiting to be hired when running your own business. The UAE tops the charts all over the world for its workforce’s business abilities in management, leadership, operations, etc., according to a study by Coursera. Plus, the country maintains enacting reforms to draw and keep a growing pool of talent. As a result, you can hire a qualified team to give you the assurance that you will continue making progress.
Due to the conducive environment that serves as a template for a prosperous future, the UAE levies almost no taxes on Australian business owners. One of the biggest advantages of conducting business in the UAE is tax exemption. But some companies may be required to pay a 5% VAT on specific commercial activity.
Dubai is home to various free zones, which are specialized free economic zones. Entrepreneurs in the UAE are permitted to own 100% of their businesses. As a result, if you move your own business to Dubai, you can work when and how you choose.
Profitable Geographical Location
Dubai makes the most of its strategic location, a natural advantage. The city is situated where East, West, North, and South converge. As a result, it connects suppliers, producers, and manufacturers across the globe. A significant portion of trade and tourism operations are facilitated by the airport and seaport of Dubai. This encourages the expansion of the tourism, re-export, and import-export industries in the UAE.
Over the past years, Dubai’s infrastructure has gone through enormous changes. This has drawn a tonne of entrepreneurs from all around the world. Dubai also has a reliable public transportation system. Outstanding telecommunications and other amenities are also present in the city. Dubai features various technology developments and has the most latest digital infrastructure. In fact, the UAE Digital Economy Strategy highlights a greater emphasis on digital changes going forward. As a result, Dubai now offers more business options.
100% Repatriation of Profits
Australian companies are not required to pay taxes to the UAE government on all of their invested capital and profits. On the UAE’s mainland and in its free zones, any type of business is allowed to totally repatriate its funds and revenues.
Easy Visa Procedure
Obtaining a Dubai visa is simple if the necessary paperwork is available during the time of submitting it. The UAE has updated its visa policies. With these new regulations, the market for employment, which is dominated by foreigners, will be more flexible.
High Quality of Life
In the UAE, 4 out of 5 residents are foreigners. This makes Dubai a multicultural community. People become conscious of other cultures when they live in such a diversified environment. They are able to keep peace and cultivate healthy connections as a result. In addition to that, people in Dubai favor high-end goods and services. Thus, Australian businesses will benefit from such a high quality of life in Dubai.
Business Supportive Government
The Dubai government consistently offers safety and benefits to Australian business owners. To ensure that there are more chances for business, it continuously modifies the rules for doing business. Additionally, the government occasionally plans a variety of foreign events. Additionally, it provides a simple set of rules for doing commercial business operations. When ideas for businesses receive support and traction from their surroundings, they are more likely to become successful. Additionally, Dubai can turn out to be a profitable place for your company.
Before moving on to the main process, let’s see which documents are required but not limited to:
- Certificate of reference from a personal bank of every shareholder (depending on business structure type)
- A business plan
- Ultimate Beneficial Ownership (UBO) General Manager, Director, and shareholder passport and utility bill copies
- Filled new business setup application
- Copies of your Australian company documents (if required)
Process to Move AU Business to Dubai, UAE
Follow these steps to move your Australian business to the UAE:
1. Choose a Jurisdiction
Firstly, choose a jurisdiction suitable for your business. It is because many places in Dubai and the UAE only accept particular types of business operations. Be careful not to launch a company in Dubai only to discover that you can’t operate there!
Decide whether you want to move to the mainland or to a free zone. Following are some of the benefits of establishing a business in the free zone:
- 100% tax exemption on import and export
- No personal or corporate taxes.
- 100% of profits and capital will be given to you.
- full corporate ownership.
- No limits on currencies.
However, if you want to conduct business with the UAE’s local market directly, you’ll need to go for the mainland option and work with a company there that will demand a fee. if you decide to establish a business on the mainland, you are free to conduct direct business with both domestic and foreign markets. You will need to collaborate with a local partner who will own 51% of the shares in your company unless your line of business operations comes under the category of professional services.
2. Choose a Location
Next up, you have to choose a location for your business. The free zone and the mainland are the two economic zones where you can run your business. You need to find the location in your selected jurisdiction. Specific sectors or activities, including those in the media, finance, or technology, are permissible to be conducted at some free zone locations. For example, Dubai Media City, as its name implies, is a free zone reserved for media companies or companies engaged in the media-related industry. Internationally known media firms like BBC, CNN, and Thomson Reuters have their headquarters in Dubai Media City. Another example is the Dubai International Financial Centre (DIFC), which houses the offices of significant international financial services firms like Morgan Stanley, Goldman Sachs International, and Credit Suisse AG.
However, over time, a number of industry-specific free zones have begun to accept all types of commercial operations, not just the ones they are designed for.
In addition to restrictions, there are multiple reasons you might wish to set up your company near companies in your industry. Take a look at the transportation options as well. One of the free zones located close to an airport or seaport should be taken into consideration if your company is largely dependent on imports and exports.
In the UAE, a wide range of industries is thriving. New firms that support this vision will be viewed favorably in 2023 and beyond thanks to the commitment to diversification beyond the oil economy.
3. Choose a New Business Name
Make sure your company name is suitable legally before committing to it because the UAE has certain rigorous naming conventions. If your current business name is as per the rules, you can keep it. If not, you must change it and then register it.
Any names that contain objectionable language or make reference to Allah, Him, or other religious, sectarian, or political organizations like the FBI or Mafia are prohibited. The person must be a partner or owner of the business if you decide to name your company after them, and their complete name must be used—no initials or abbreviations are permitted.
4. Complete the Incorporation Paperwork
Post that, you need to deal with the necessary documentation. You will need to fill out an application for your chosen business name and activity, which you will submit to the appropriate government officials along with copies of shareholders’ passports. A business plan or Non-Objection Certificate (NOC) is needed in some free zones. It is a letter from your present sponsor certifying that you are permitted to open a new company in the UAE.
You must fill out an application to register your selected business name and activity and submit provide copies of shareholders’ passports at the time of registering your business in the UAE.
A Memorandum of Association must specify the capital requirements that mainland businesses must meet.
5. Checking and submitting your paperwork
To register your business activity and trade name, get in touch with the Department of Economic Development of your preferred Emirate. After that, provide the necessary paperwork. On the website of the UAE government, under Information and Services, you can find links to the relevant offices. You will receive your business license once your application has been reviewed and approved.
6. Apply for a License
The government will issue you a company license after processing your application. No matter where the setup takes place, you’ll typically only need a few common documents, such as a completed application form and copies of shareholder passports for the license. You might also be asked to submit a business plan in some free zones.
7. Open a Bank Account
After your paperwork has been returned to you, you will receive all the necessary papers to open your business’s bank account. Before you can start trading in the UAE, you must have a bank account. Numerous banks, both domestic and foreign, are functional in the UAE. Selecting the one that’s right for you depends on your business’s specific requirements. The bank choices include:
- Commercial Bank of Dubai
- Emirates NBD
- Abu Dhabi Commercial Bank
- Noor Bank
- Ajman Bank
- Emirates Islamic
How to Open a Business Bank Account in the UAE
In the United Arab Emirates, opening a bank account typically takes two to four weeks. The bank will inquire about:
- Your primary clients and vendors
- Your main areas of business
- Sum of deposits
- Your estimated currency amount
- Levels of revenue
Documents Required for opening a bank account are:
- Complete set of business documents for UAE including business lease and business Ejari, trade license, Memorandum & Articles of Association, share certificate, Chamber of Commerce registration, Certificate of Incorporation, etc.
- Australian company full set of company documents including Articles of Association, full register details, Certificate of Incorporation, etc.
- Shareholder and Ultimate Beneficial Ownership (UBO) details including utility bill and bank account copies, passport copies, visa copies, etc.
8. Apply for a Visa
The last step in the process of moving an AU business to Dubai is applying for a visa. Many free zones allow you to submit applications for staff and dependents in addition to your own visa. Which free zone you decide to establish will determine the exact number of visas you can get.
If you want to get visas for a spouse, child, maid, or driver, it is essential to seek professional guidance to make sure that you and anyone you want to sponsor for a visa both fit all entrance requirements and that it is possible to do so in the free zone you have chosen.
Assuming everything is in order, the procedure of visa application consists of four straightforward steps:
- Entry permit
- Status adjustment
- Medical fitness test
- Emirates ID registration and visa stamping
A mainland corporation owner can apply for as many visas as necessary, but enterprises operating in free zones may be subject to restrictions that differ from one free zone to the next.
FAQs – Frequently Asked Questions
Can I transfer my business to Dubai?
Yes, anyone can transfer their business to Dubai. Remember to follow the rules, regulations, laws, and the process before taking any step.
Can I move my business to UAE?
It is possible to move your business to the UAE.
Can I move my AU business to Dubai?
Yes, you can move your AU business to Dubai. You just have to follow the defined process in order.
Can a foreign company do business in Dubai?
A foreign company can do business in Dubai. Just follow the steps given in the process and you will be able to expand your company in Dubai.
Move AU Business to Dubai, UAE with RIZ & MONA CONSULTANCY
So, we can clearly see that moving a well-established business from Australia to Dubai, UAE is not that challenging. All it takes is a pre-defined process to follow along with professional guidance. Seeking help from experts will make sure you don’t do any mistakes in the process. If you are also looking to move your business, you should get in touch with RIZ & MONA CONSULTANCY, professional business setup experts in the UAE. Contact us now and we will handle your case on your behalf and ensure the process is completed smoothly.