For any business to create a yardstick in its particular industry and increasing its revenues, it is vital to expand its footprints by establishing a global presence. Keeping this in view, starting a branch office in Dubai is the best decision. Dubai over the years have emerged as one of the top business destinations in the world.
A robust economy, rising population, increased standard of living, excellent infrastructure, strategic global location, increase influx of foreign visitors coupled with exceptionally attractive tax structure make Dubai the ideal destination for companies and entrepreneurs world over to have a office set up in Dubai. Therefore, if you are considering setting up a branch office, then definitely it can be quite lucrative in a city like Dubai.
Let us now look at the top reasons to open a branch office in Dubai:
Benign tax structure
The economy of Dubai is considered one of the most flexible and most variegated globally. This is because the country offers tax free policy for nearly all types of business activities. But excludes branches of international banks, hotels and major oil and gas companies.
Notably, taxes such as corporate tax, capital gains tax, personal income tax, value-added tax, withholding tax are not applied in Dubai. This is one of the reasons why most businessowners prefer to have an office setup in Dubai.
Furthermore, in comparison to other commercial capitals world over, Dubai has the lowest VAT which is only 5%. Besides, there are no restrictions on the repatriation of capital and profits and also there are no duties on the import and export of goods.
One of the important reasons why companies or entrepreneurs choose to set up a branch company in Dubai is because of the fact that you can have 100% ownership here. In other words, since a branch company is not an independent identity but an extension of the parent company, so there is no requirement of local sponsor during branch office formation.
Although, it does require a local service agent to offer the business services related to the Government authorities and does not hold any ownership.
Branch office in Dubai is cost-effective
Well, undeniably incorporating a branch company in Dubai is a cost-effective way of entering the country. Firstly, there is no requirement of share or authorized capital for setting up a branch company in contrast to other business entities as in the case of local company or a free one company.
All your need is to pay the standard fees, applications and deposits, thereby considerably reducing the amount of initial investment that has to be made.
Also, there is no requirement for a separate financial structure in the company and also no requirement of audit reports or bank accounts. Consequently, all this help in letting you to set up a regional presence in a more cost-effective and easy manner.
Dubai is strategically located between Asia, Africa and Europe, thereby making it an ideal and great place for setting up a branch office permitting almost any kind of business activities. Worth mentioning, Dubai has one of the largest airports as well as seaport in the region, subsequently the business owners face no hassles in terms international freight.
It is easily doable to bring products or merchandises to Dubai from any part of the world and similarly it is relatively easy to send products or merchandises from Dubai to any part of the world via land, air and sea.
To put it simply, Dubai is the most easily accessible place from anywhere around the world and offers access to whooping 2.5 billion consumer market.
High standard of living
Choosing Dubai for setting up your branch office is also advantageous for your business owing to the fact that the people over here enjoy high quality of life and living standards condition. They have significant disposable income and good purchasing power.
Rather, UAE has been ranked as the topmost country with the best quality of life in the MEA region and secured 15th position in the world out of 160 countries. Besides, owing to low crime rates here, it is known to be one of the safest cities in the entire world.
Excellent infrastructure for setting up a branch office in Dubai
Another good reason for setting up your branch office here is that Dubai has the one of the excellent and highly modernised infrastructural facilities globally. Be it the airports or seaports, road networks or for that matter even telecommunications along with uninterrupted power supply.
As per the Travel and Tourism Competitiveness Report of WEF, Dubai’s infrastructure has been rated among the best in the world.
Moreover, you do not need to fret about finding an office space or any kind of premises for running your business operation as everything is ready to move in and in top class condition. What is more, continued expansion of existing metropolis in terms of new state of the art buildings, roads, and more convenient public transport system is undertaken by the government. All these amenities are sufficient to set up your branch office in Dubai.
Some of the other good reasons such as long-term residency and work visas for expats or foreigners, ample availability of human resources, secure and stable political and social climate, favourable investment atmosphere and governmental support along with a vibrant and growing economy, makes the UAE a business-friendly country for companies and entrepreneurs to set up their branch office here.
Open a branch office in Dubai NOW!
Dubai is one of the fastest growing cities in the world. Undeniably, it presents the ideal eco-system for startup businesses to thrive. And so certainly there is no better time than now to open a branch office in Dubai!
However, not to forget that office setup in Dubai involves heavy documentation, legalities and procedures to be adhered to for starting your business in Dubai. Expats are more likely to face difficulties with the procedures. But don’t worry, Shuraa Business Setup is here to guide you with its expertise in office setup process in Dubai. We will make the process relatively seamless and simple for you!