More and more businessmen and entrepreneurs currently residing in the UK are looking to move their business to Dubai with every passing day. It is due to the ease of doing business and the countless benefits that Dubai offers to businesses and startups. If you are also looking to move your UK business to Dubai, UAE, you need to fulfill some requirements, submit some documents and follow a complete procedure. Here’s what you need to do.
Reasons to Move UK Business to Dubai, UAE
There are countless reasons that will force you to move your UK-based business to Dubai, UAE. Business people know how fragile the UK economy now is. Although the UK government is trying its level best to satisfy UK businessmen with various strategies, so far they have been unsuccessful in doing so. Furthermore, there are rumors of taxes being increased in the coming days which will make it even harder for entrepreneurs and companies to sustain their businesses.
This makes Dubai the ideal place to run a business as there is a no-tax environment in the UAE, including corporate and personal taxes. With no tax to pay, Dubai is the best alternative place for UK people to close their operations there and move their business to Dubai.
To date, more than 5000 UK-based companies have transferred their business to Dubai. Anyway, there are numerous advantages to transferring your UK company to Dubai, including:
- Following COVID, the UAE economy is recovering considerably more quickly than the UK economy
- UAE is the UK’s biggest export market in the world including the Middle East.
- UAE has a stable political structure, a strong banking system, and a well-established infrastructure
- UAE ranks as the fourth-largest export partner of the UK outside of the EU.
- English is the primary language of business in Dubai. UAE’s most common language is English.
- No need to pay any corporate and individual taxes
- UAE is a gateway to neighboring GCC countries and other regions such as North Africa and Asia.
- UAE is a significant market for re-exporting to other countries of the world.
- UAE offers a free-trade environment that draws impressive investments to this region.
Things to Consider When Moving UK Business to Dubai
Moving to Dubai as an entrepreneur is extremely beneficial from a profit point of view. Before you transfer your UK business to the UAE, it is recommended to think of certain things that will help you in smoothly running your company in the current time and future. You should get in touch with Business setup consultants in Dubai such as RIZ & MONA to talk about the following things:
1. Obeying Rules and Regulations
Once you have set up your company, check whether or not, your business runs according to the rules and regulations set by the government of Dubai.
Look for the budget you decided to spend on transferring your company from the UK to Dubai. Check if it is okay to spend the set money for this task or not.
Consider the available banking options in Dubai. Make sure that there are various banking solutions that come under your business license. If not, you should reconsider your decision of moving to Dubai.
4. Business Activities
You should be able to do the business activities in Dubai that you currently perform in the UK. Check whether can you do that or not.
5. Visa Issuance
Visa issuance is one of the most important aspects of moving a company to another country. Getting a visa for yourself, your employees and your family are also crucial. You will be requiring visas for them in order to move your business to Dubai.
6. Business Location
Where will you be running your business? Where would be your office, shop, or warehouse? Is it close to the ports? Is it inside Dubai or somewhere on its boundary? How much is it far from other Emirates? You should consider the aspect of location very seriously as your business is heavily dependent on it.
Free Zone or Mainland Company: Which One is Better for You?
In Dubai, you can opt for two types of locations for companies. One is the free zone and the other one is the mainland. Let’s talk about them one by one
Free Zone Company
The free zones are a great place to open a company if you’d like to have complete ownership of it. The UAE’s first free zone was established in the 80s, and since then, it has expanded in size and scope for businesses to run smoothly. More than 45 free zones exist in the UAE at the moment. Every free zone is run and governed by a separate regulatory body, and it complies with its own set of rules and laws.
Advantages of Opening a Company in Dubai Free Zone
Establishing a company in a Dubai free zone has the following benefits:
- Details of the shareholders are kept private from the public
- 100% ownership without any requirement of a UAE sponsor
- You can enjoy impactful networking support and business advice
- Effortless and fast company formation
- Complete exemption from duties on export and import
- Full repatriation of profits and capital
- Comparatively simple recruitment policy
Simply put, a mainland company is an onshore organization that has registered itself with the appropriate government body of the Emirate. 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 feature of a mainland-based firm. For certain business activities, however, you must have a citizen of the UAE or a local sponsor as a partner in the company.
Advantages of Opening a Company in Dubai Mainland
Establishing a company in Dubai mainland has the following benefits:
- Easy access to the global markets without any restrictions
- Freedom to run a business anywhere in the United Arab Emirates without any restrictions
- Full repatriation of capital and profits
- You can establish an office site anywhere in the registered emirate and set up several company branches, giving them a strong presence in the market of Dubai and the rest of the UAE.
- You can bid and win UAE government contracts to work on them
- Issue any number of visas
- Complete exemption from all personal and corporate taxes
Documents Required to Move UK Business to Dubai
The standard documentation requirements for moving your UK business to Dubai are (but are not limited to) the following:
- Certificate of reference from each shareholder’s personal bank (depending on structure type)
- A thorough business plan having all the details
- copies of the Ultimate Beneficial Ownership (UBO) shareholder, director, and general manager’s passports and utility bills
- copies of your company’s documentation from the UK, if required.
- Completed application for setting up a new business
How to Setup Business in Dubai, UAE
Any foreigner can set up a business in Dubai and make big money out of it. An overview of the procedure for setting up a business in Dubai is provided below:
- Firstly, choose a business or trade name for your company. It sounds simple to choose a trade name for your company, but it is not. In the United Arab Emirates, the trade name must be clear in Arabic and free of references to any other organizations, authorities, or religions. Our experts at Riz and Mona will offer suggestions and advice for naming your business and perform verifications to ensure the name will be accepted.
- Then, you have to choose a business activity for your firm. Selecting the appropriate business activities is crucial for the success of your company. The authorities may request supporting documentation, such as educational credentials, portfolio experience, etc. depending on the type of firm you want to set up.
- Post that, you have to check the required documents. Make and verify that all the paperwork is finished, the applications in Arabic and English are complete, and they are prepared for submission.
- After the firm is ready to be set up, the trade license will be provided, and we can then begin the procedures for obtaining visas and opening bank accounts.
Visa for You and Your Family to Live in Dubai and the UAE
As soon as your company is established in Dubai or in anywhere the UAE, you can get your visa and for your family to live in Dubai, UAE. You will require to issue a residency visa for yourself, the managing director, the general manager, and all shareholders of the company. You should be having all the documents in order to complete your visa process without any errors.
You will be able to apply for your family visas, domestic workers, and other employees that you choose to hire for your firm once the firm owner’s visa is issued.
Opening a Bank Account in Dubai
After setting up your company in Dubai, the next thing you need to do is to open a business bank account in a corporate bank in the UAE. In order to open a bank account, the general manager or shareholders of the company need to meet bank representatives and sign the application forms required. It is mandatory for your company to adhere to central banking regulations, banking policy, and compliance. Your chosen bank for the business account may ask for other documents or information as part of their procedures formalities.
A UK company that has just relocated and established itself in Dubai and the UAE can choose from a variety of corporate banking services offered by local banks in the UAE. There is usually a requirement to keep a minimum maintenance balance in your business bank account each month when you have a company bank account. A small banking fee will be charged if a company fails to reach and meet the requirement of a minimum balance each month.
You will need to submit the following documents to open a bank account in the UAE:
Ultimate Beneficial Ownership (UBO) and shareholder details including copies of bank account, passport copies, utility bills, visa copies, etc.
Articles of Association of UK
- Business Ejari
- Trade license
- Companies House full register details
- Memorandum & Articles of Association of UAE
- Chamber of Commerce registration
- Share certificate,
- Certificate of Incorporation
- Business lease in UAE
- Certificate of Incorporation and more.
FAQs – Frequently Asked Questions
Can a British start a business in Dubai?
Yes, a British can start a business in Dubai. You just need to follow some rules, and regulations and go through a complete process for doing so.
Can I move my UK business to Dubai?
Yes, you are allowed to move your UK business to Dubai. Submit the application and provide the required documents to the relative authority and you will be able to transfer your UK business to the UAE.
How can I move my business to Dubai?
You have to follow a comprehensive process including submitting an application, getting visas, providing documents, etc to move your business to Dubai. You may reach out to any business setup consultants in Dubai for more information.
Can I move my business to UAE?
Yes, people from across the globe can move their business to the UAE. UAE is an excellent place to start a new business or move to the established one as its environment is business-friendly and supports companies to scale up and earn a hefty amount of profit.
How do I register a company from the UK to Dubai?
British nationals can register a company in Dubai with the help of knowledgeable business experts like RIZ & MONA. Our experienced professionals will coordinate the company setup procedure in Dubai after receiving the necessary paperwork from the applicant online.
Can a Foreigner Setup a Business in Dubai?
Yes, a foreigner can set up a business in Dubai. Tons of Middle Eastern business activities are centered in Dubai. Dubai welcomes new companies wishing to establish themselves or grow there. There is a spirit among start-ups and multinational corporations trying to launch or establish a firm to draw in top professionals and international capital from across the globe. With 80% of the population being foreign-born, Dubai and the rest of the UAE are home to many different cultures. Considering that Dubai is one of the cities that is home to entrepreneurship, starting a business is strongly advised to all the business people and entrepreneurs out there.
Which is the Best Free Zone in the UAE?
There are more than 50 free zones in the UAE. While some free zones are more general and provide a variety of business activities, others are more industry-specific. Every free zone has its own unique lodging demands, set of rules, and reporting obligations. You can choose the free zone that suits your business requirements the most.
How to start a business in Dubai as a foreigner?
To start a business as a foreigner, you need to:
- Choose a business activity
- Choose a business name
- Get visa
- Submit the application along with the required documents
- Get trade license
Can I move my UK limited company to a different country?
Yes, you can move your UK limited company to a different country. For that, you need to transfer your company’s registration to some other country. To do so, you should dissolve it and incorporate a new company in your selected jurisdiction. Your business assets can be transferred to your new company after it is set up.
Move Your UK Business to Dubai, UAE with RIZ & MONA
Moving the UK business to Dubai, UAE is not that complex. British people can easily do it if they follow the procedure described above. You can reach out to us for transferring your UK business smoothly. Contact us right now and we will handle all procedures on your behalf.