Doing business in Canada is good but doing business in a global business hub, Dubai, is far better. Plus, the business-friendly benefits, facilities, and atmosphere that you get in Dubai are not available in Canada. So, it all makes to move CA business to Dubai. But it requires some process, documentation, and other related things that you must know in order to make the relocation process easy for you.
Read on to find out how you can move the Canadian business to Dubai, UAE in the right way.
Table of Contents
Reasons to Move CA Business to Dubai
Businesses may encounter a number of difficulties when operating their activities in Canada, including:
1. High Taxes
Canadian businesses may find it challenging to maintain their competitiveness and profitability due to the country’s high tax rate in comparison to other countries.
2. Regulatory Burden
Businesses in Canada must go through a complicated regulatory framework that can be burdensome and full of rules and regulations.
3. Labour Laws
As Canadian labor regulations prioritize protecting workers, it can be challenging for companies to successfully manage employee expenses and levels.
4. Geographical Barriers
The size and demographic distribution of Canada might make it challenging for companies to grow profit-wise and reach their target market.
5. Shortage of Skilled Labor
It might be difficult for businesses to find the talent they require to expand and prosper in Canada due to a shortage of competent people in some fields.
6. Currency Fluctuations
Currency fluctuation is another issue when doing business in Canada. Businesses that trade internationally can suffer from fluctuations in the Canadian dollar against other major currencies.
There is huge competition in Canada in different business sectors. It can be difficult for smaller businesses to compete in certain industries due to the presence of many large multinational corporations in the country.
Canada has harsh weather in some areas, which can have an effect on companies that rely on transportation or outdoor work.
Some Canadian regions may lack adequate infrastructure and road networks, which can make it challenging for businesses to transport goods and reach important markets.
10. Government Policies
Businesses operating in Canada may be significantly impacted by changes to regulations, tax laws, and trade policies, among other government policies.
11. Access to Capital
Some businesses, especially startups and small businesses, may have limited access to initial capital, which can make it difficult for them to secure the funding they need to expand and succeed in the country.
12. Cybersecurity Threats
Threats related to cybersecurity are on the rise and can have a big effect on Canadian businesses, especially in sectors like technology and finance.
13. Cultural Differences
Given Canada’s sizeable indigenous population and diverse cultural landscape, businesses that are unfamiliar with the distinctive cultural practices and norms of these communities may encounter difficulties.
Things to Consider When Moving CA Business to Dubai, UAE
Before you move your Canadian business to the UAE, here are some important things to consider:
Determine Your Business Needs and Goals
It’s crucial to evaluate your business needs and objectives before you begin the process of transferring your business operation to Dubai. Think about things like the size of your company, the sector you work in, and your target market. You should also take into account the possible language and communication barriers between Canada and Dubai, as well as the cultural and economic differences between the two regions.
Do Market Research
When moving a business to a new location, market research is essential. Although Dubai is a market with a strong economy, a wide range of industries, and an expanding market, it is crucial to comprehend the unique opportunities and challenges present in your target market. This will assist you in deciding whether Dubai is the ideal place for your company as well as in finding potential customers and main rivals.
Register Your Business in Dubai
You must register your business with the Dubai Department of Economic Development (DED) once you have decided that Dubai is the best location for it. The registration process is quite simple, but it’s crucial to understand the requirements and to make sure that all required paperwork is available.
Obtain the Necessary Licenses and Permits
To conduct business in Dubai after registering your company with the DED, you must secure the required licenses, permits, and permissions. A trade license, a residency permit for you and your staff, and other licenses relevant to your business sector are usually included in it. It is advised that you contact a qualified consultant to help you because the process of getting these licenses can be time-consuming and difficult.
Establish a Business Structure
Establishing an appropriate business structure in Dubai, such as a Limited Liability Corporation (LLC), is crucial to guarantee that your businesses are in complete compliance with all applicable rules and regulations. It is crucial to pick the best structure for your purposes because your choice of business structure will also affect the taxes you pay and the degree of control you have over your business activities.
Find a Suitable Business Location
A crucial step in relocating your company to Dubai is to choose a suitable business location. Take into account elements like closeness and accessibility to your target market, and the presence of appropriate facilities and infrastructure. Due to the high cost of commercial real estate in Dubai, you may additionally need to factor in the cost of the rent.
Hire Local People
A crucial element of successfully relocating your business to Dubai is hiring local employees. To support your business operations and assist you in navigating the cultural and language variances present in Dubai, you must make sure the appropriate staff is in place. Your staff could also require support and training to help them adapt to the new business and even environment.
Establish a Local Network
Any business operating in a new place needs to establish a local network, and Dubai is no exception. You may develop your business in the local market and find new prospects by establishing connections with neighborhood businesses and groups, and participating in networking opportunities and community events.
Navigate Cultural and Linguistic Differences
Dubai is a multicultural city with citizens from many different countries living there both permanently and temporarily. Understanding and respecting the cultural variances present in Dubai is crucial, as is being aware of any potential communication difficulties. There could be variations in etiquette, social conventions, and business methods. Given that many of your staff or clients may not speak English as their first language, you may also need to take language obstacles into account. To assist close any communication gaps, it is advised that you invest in language training for both yourself and your team.
Develop a Comprehensive Marketing Strategy
In order to advertise your company and bring in new clients for your business in Dubai, you must have a thorough marketing plan. Print advertising, social media marketing, and email marketing are examples of traditional and digital marketing strategies that could be used for this purpose. Understanding your target market can help you to better target your marketing efforts to appeal to their particular demands and needs.
Look for Professional Consultation
At last, it is advised that you get expert legal or consulting assistance to guide you through the difficult regulatory and legal requirements involved in relocating your company to Dubai. They can help you with everything from business registration to securing visas and licenses. They can also offer insightful pieces of advice and guidance on navigating the regional business environment.
Required Documents to Move Canada Business to the UAE
Depending on your company’s nature, its organizational structure, and the particular criteria of the Dubai Department of Economic Development (DED), there are different documentation requirements when relocating a business from Canada to Dubai. However, some of the typical paperwork needed for the process is as follows:
1. Business Plan
A thorough business plan outlining your business objectives, target audience, financial projections, and marketing approach.
2. Proof of Identity and Residency
Documentation proving the identification and residency of the business owners and any employees who will be working in Dubai, including passports, residency visas, and other legal documents.
3. Trade License Application
An application for a trade license that has details on the company, its owners, and the kind of business activity that will be carried out in Dubai.
4. Legal Documents of the Parent Company
The company’s articles of incorporation, memorandum of association, and other corporate documents are legal documents that you need to submit.
5. Proof of Financial Stability
Financial records showing the company’s financial stability include balance sheets, tax reports, and bank statements.
6. No Objection Certificate (NOC)
A no objection certificate (NOC) from the Canadian business owners stating that they have no issues with moving the company to Dubai, UAE.
7. Commercial Lease Agreement
A commercial lease agreement that specifies the rent, the length of the lease, and any conditions or restrictions for a commercial space in Dubai.
It’s crucial to keep in mind that these are some of the documents that could be needed in order to relocate your company to Dubai. You should obtain professional guidance to make sure you have all the required documentation in order because the particular requirements will vary depending on the type of your business and your unique circumstances.
Process to Move CA Business to Dubai, UAE
Moving a business from Canada to Dubai, United Arab Emirates can be a difficult and time-consuming process. But with careful planning and execution, it can be a worthwhile and lucrative endeavor and make the transfer as easy as possible.
To move a CA business to Dubai, you need to follow these steps:
- Do some research on and familiarise yourself with Dubai’s business laws and regulations, particularly those pertaining to specialized services. Observe and obey all local rules and laws, especially those pertaining to taxes, reporting specifications, and data security.
- Obtain all required permits, approvals, licenses, and authorizations, including those for foreign-owned companies.
- Register your business with the Dubai Economic Department (DED) and the Dubai Chamber of Commerce and Industry.
- Open a local bank account and make sure you and your staff have the appropriate visas.
- Your company’s infrastructure, including any physical offices, furnishings, things, and personnel, should be relocated to Dubai.
- Establish business networks, ties, and relationships with local clients, suppliers, and regulatory organizations in Dubai.
Depending on your company’s size, type of services given, and business structure, there may be different criteria for transferring a CA business to Dubai. It is therefore advisable to seek advice from a local business consultant or lawyer.
Benefits of Moving a Canadian Business to Dubai, UAE
By moving a Canadian business to Dubai, companies can take advantage of many benefits and position themselves for growth and success in this dynamic market. Some of these several benefits are:
1. Lower Taxes
In comparison to Canada, Dubai has more favorable taxation conditions thanks to lower corporation tax rates and tax exemptions for specific business sectors.
2. Pro-business Environment
With several initiatives and assistance programs targeted at luring foreign investment and fostering corporate expansion, Dubai offers a pro-business environment.
3. Access to New Markets
Dubai is a prime location for reaching new markets in the Asia and Middle East, thanks to a strong transportation network and a welcoming business environment.
4. Diverse Workforce
Dubai’s workforce is diverse and competent, making it simpler for companies to hire the people they require to develop and prosper their businesses.
5. Advanced Infrastructure
Modern transportation networks, dependable telecommunications, and the latest technology are just a few examples of Dubai’s first-rate infrastructure, which makes it simpler for companies to run and reach their target markets.
6. Stable Economy
Dubai owns a good business climate, a stable economy, and minimal inflation making it a secure and predictable market for companies to function.
7. Favorable Trade Agreements
Due to Dubai’s beneficial trade relations with other countries, it is simpler for companies to access new markets and broaden their reach.
8. Access to Funding
Dubai has a well-developed financial sector featuring a wide range of funding options, including grants, loans, and venture capital available for companies functioning in the UAE.
9. Networking Opportunities
Dubai owns a bustling business environment with lots of options for business development and networking, which can help companies reach more people and expand their customer base.
10. Tourist Destination
Dubai is a popular travel destination with a thriving tourism economy and high consumer expenditure, which can open up a lot of chances for companies in the hospitality, travel, and retail industries.
11. Cultural Diversity
Due to Dubai’s big expatriate and diversified ethnic population, the city offers businesses a number of fresh markets and a customer base to pursue.
12. Strong Support System
A variety of government programs, business associations, and support services are available in Dubai to assist businesses in expanding and succeeding in the UAE.
13. Location for Regional Headquarters
Due to its advantageous business climate, strategic location, and robust infrastructure, Dubai is a desirable destination for companies wishing to build their regional headquarters.
14. Innovation and Technology
With a variety of initiatives and programs targeted at growing the expansion of technology- and innovation-driven businesses, Dubai has a strong emphasis on innovation and technology in business sectors.
Free Zone vs. Mainland: Explained in Detail
The UAE is among the top locations in the Middle East for foreign business establishments. It is an international hub that offers opportunities to many different nationalities and business sectors. International investors find it to be quite attractive due to its liberal, stable, business-friendly climate and numerous business promotion efforts.
You have a choice of establishing your business on the mainland or in a free zone of Dubai. Like many people before you, you might be wondering what the difference is between the two economic zones. Additionally, how can you know which is the best decision?
Depending on your business and its requirements, each jurisdiction has advantages, disadvantages, and investment potential. Here is all the information you require about these economic zones.
What is Mainland Company?
Simply put, a mainland company is an onshore company that has registered with the appropriate Emirate government body. Its commercial license is issued by the Department of Economic Development (DED) of the Emirate. The absence of limitations on its commercial activity is the primary characteristic of a mainland corporation. For some business activities, however, you must have a local sponsor or a citizen of the UAE as a partner in the company.
Advantages of a Mainland Company
Following are some of the advantages of a mainland company in Dubai:
- Access the world’s markets without limitations.
- Unrestricted freedom to conduct business within the UAE.
- 100% capital and profit repatriation was permitted.
- Taxes on individuals and corporations are completely excluded.
- Contracting with the UAE government and placing a bid.
- Can establish company branches and set up their office site anywhere in the registered Emirate, giving them a strong presence in the regional market.
- No limits on the number of visas.
What is a Free Zone Company?
The free zones are a great alternative to the mainland if you’d like to maintain complete ownership. The UAE’s first free zone was established in the 1980s, and since then, it has expanded in size and scope. Over 45 free zones exist in the country at the moment. Each free zone is run and governed by a separate regulatory body, and it complies with its own set of rules and laws.
Advantages of a Free Zone Company
Here are some advantages of a free zone company:
- Free zones offer networking assistance and business guidance.
- 100% ownership without a UAE sponsor being required.
- Relatively simple employee hiring procedures.
- Rapid and simple business formation.
- Duty-free imports and exports.
- 100% repatriation of profits and capital.
- Information about shareholders is kept secret from the public.
Mainland vs Free Zone: Major Differences
Each of these jurisdictions has a certain corporate structure and is different from one another. The main things that set them apart are listed below to assist you in selecting the one that is best for your business:
At the end of the fiscal year, all mainland businesses are required to prepare a financial audit. Not all free zones, nevertheless, demand that businesses conduct their yearly financial audits. Only free zone businesses like FZE and FZCO are required to perform an audit at the end of the year.
Up until recently, if you were a foreign investor starting a business on the mainland, you could only own up to 49% of it; the remaining 51% belonged to the Emirati sponsor. However, for a few businesses incorporated on the mainland, the UAE government currently permits 100% foreign ownership. There are no restrictions in free zones, and you do not need local sponsors from the start.
A physical office must be at least 200 square feet in size for a mainland company. The DED will provide your business with a license if you have acquired the necessary space. Since many free zones permit businesses to establish virtual workplaces, it is not necessary for free zone enterprises to provide a physical office site.
The key difference between free zone and mainland businesses is that a free zone business needs a local agent in order to conduct business outside the free zone. Companies from the mainland that are authorized to conduct business anywhere in the UAE are exempt from this restriction.
Business Setup Approvals
For a mainland corporation, you would need government authorization from multiple different government organizations. These include the Ministry of Labor, Dubai Municipality, and the Department of Economic Development, among others. In contrast, each free zone adheres to its own laws and rules for any new businesses opened within its borders. In addition, you can launch your business in a free zone without seeking approval from non-free zone government authorities or agencies.
There are no visa limitations for mainland businesses, but the number of visas awarded varies by workplace. Therefore, if your business needs more visas, you’ll need to buy or rent bigger premises. Free zone businesses are subject to quotas on the number of visas they can apply for, in contrast to mainland businesses. The quantity of visas often ranges from 1 to 6 and is determined by the rules of the free zone.
FAQs – Frequently Asked Questions
How can I immigrate to UAE from Canada?
You can immigrate to UAE from Canada if you have the following:
- A passport and passport-size images.
- In the case of UAE company employees, documentation of your educational background and job history is required.
- In the event of spouses of UAE nationals or residents, a marriage certificate
- In the case of students, an acceptance letter from the UAE-based educational institution.
- In the case of Canadian investors, bank statements prooving the finances for investments.
Can I move my business to UAE?
Yes, a US citizen may move to Dubai if they find employment there and the Dubai employer sponsors and arranges for their UAE residency visa. Another choice is to move your US company and establish it in Dubai, in which case you will be eligible to apply for a UAE residency visa through your UAE-registered company.
Is it easy to move to Dubai from Canada?
Yes, the process of moving to Dubai from Canada is easy and simple. Still, it is better to consult experts and advisors to get more details about it.
How long can a Canadian stay in UAE?
A Canadian entering the UAE must obtain a free entry stamp upon arrival, valid for 30 days. Meaning, you can stay in the UAE for 30 days. If you have a visa, you can stay as long as your visa permits.
Is UAE visa-free for Canadian citizens?
Yes, UAE is visa-free for Canadian citizens. They do not need to pre-apply for a visa to enter the United Arab Emirates, they can get a free visa upon arrival.
Move CA Business to Dubai with RIZ & MONA CONSULTANCY
So, that is it for now about how to move a Canadian business to Dubai, UAE. Careful planning, execution, and a thorough knowledge of the regional market and regulations are required when moving a business from Canada to Dubai, United Arab Emirates. You may ensure a smooth move and start a profitable business in Dubai by following these instructions. Do not hesitate to get help from experts like RIZ & MONA CONSULTANCY when necessary.