Incorporation of a company in Dubai is possible for a variety of objectives - for international business as well as for business directly in the country. These can be different tasks and business areas.
One of the tasks, which a company in Dubai matches very well - is to build international holding structure.
Advantages of Dubai, UAE, for the incorporation of a holding company are obvious - absence of taxes on all types of income of the holding company. At the same time, which is very important, a company may have the status of a tax resident of the United Arab Emirates, to open a real office, hire employees, i.e., if necessary, run a real activity on asset management overseas, and remain in the status of the company exempt from tax payments in the United Arab Emirates. In this case, such company can use a number of treaties for avoidance of double taxation, signed by the United Arab Emirates.
This factor fundamentally distinguishes holding companies in Dubai from holding companies which may be incorporated in other jurisdictions, which also provide preferential taxation for holdings.
Company in Dubai can, without any complications, confirm its residential status in the country of incorporation. In comparison with offshore companies, which cannot receive such confirmation, is a very important parameter when choosing UAE as the country for incorporation.
In addition to direct tax exemptions on profits obtained by the holding, such company in Dubai also obtains all the benefits when hiring employees in its office in the UAE – there are no taxes or other payments on salary, plus it is not difficult to get employment visas for foreign specialists.
A holding company in Dubai also effectively protects international assets since any litigation can be considered, for example, in the court of the Dubai International Financial Centre under the rules of British law.
It is also worth noting a possibility for a company incorporated in the UAE to get access to finance its projects provided by banks in the UAE as well as a possibility to be listed at the local stock exchange.
And, certainly, since Dubai is a prestigious world center for doing business, the company receives necessary level of image and additional opportunities for business expansion in the region and other countries.
