Moving your business from the UK to Dubai is more than just a tax-saving decision. The United Arab Emirates (UAE) offers incredible business opportunities and an unparalleled lifestyle for you and your family.
Business relocation to Dubai involves navigating complex legal, business, and tax regulations and requirements. It is essential to obtain professional advice for your business setup in Dubai. Worldwide Formations is a business setup specialist in Dubai and can ensure a seamless transition for your company’s operations to Dubai.
In this comprehensive blog, we’ll guide you through everything UK citizens need to know when wondering, ‘Can I move my UK business to Dubai,’ the steps involved, the benefits of relocating your business to the UAE, and practical considerations.
Can I move my UK business to Dubai?
Yes, you can move your UK business to Dubai. There are several avenues to choose from to operate your business legally in the UAE:
- Establish a branch office in Dubai
- Set up a subsidiary owned by your UK company in Dubai
- Complete relocation in which you close your UK operations and create a new legal and business entity in Dubai
You will need to study the legal and tax implications of each before proceeding with business setup in Dubai. The legal considerations for UK entrepreneurs looking to move their UK businesses to Dubai must comply with the UAE’s regulations, including:
- Federal Commercial Companies Law
- UAE Labour Law
- Economic Substance Regulations
- Anti-Money Laundering provisions
- UAE Consumer Protection Law
Steps to relocate your business from the UK to Dubai
Business setup in Dubai is a straightforward process – when you know what you’re doing, that is. Here are the five essential steps to relocate your business from the UK to Dubai:
1. Partner with business formation experts
The first step to successfully moving your UK business to Dubai is partnering with business setup specialists. As we’ve mentioned, the process is complex, and Worldwide Formations can save you time and money through expert assistance and advice – from start to finish.
2. Determine your business activity
As part of business formation in Dubai, before you can register a business, you must first determine your company’s business activities. There are over 2,000 to choose from, and failing to select the right ones for your business may lead to severe penalties. Worldwide Formations will help you choose the correct ones to avoid rejection of your license application and to operate legally in Dubai.
3. Select a business structure and jurisdiction
In Dubai, you can choose from various legal business structures depending on your business goals and tax considerations, such as an LLC, a branch of a foreign company, or a representative office.
At this stage, you must also choose between an offshore, mainland, or free zone business jurisdiction setup. The most popular choice is a free zone setup, with over 40 options to choose from, each offering advantages for specific industries. For instance, the DMCC is ideal for commodities trading, the DIFC for financial services providers, and Dubai Media City for media-related businesses.
4. Apply for your business license and corporate bank account
All businesses in the UAE are required to obtain relevant business licenses, such as a commercial license, a professional or industrial license, or other applicable licenses, as specified by the appropriate authorities. Depending on your setup type, you can apply with Dubai’s Department of Economic Development (DED) or the relevant free zone authority. This step involves submitting various documents, including your business plan, copies of the business owner’s passport, and proof of address.
5. Open a corporate bank account
Once the relevant authority has granted your business license, you can open a corporate bank account. This enables you to operate legally in the UAE. We will guide you in choosing the best bank for your business needs.
Benefits of moving your business from the UK to Dubai
1. Attractive tax climate
The UAE government does not impose personal tax on salaries, dividends, inheritance, or capital gains.
2. Booming business ecosystem
With an attractive 9% corporate tax in the UAE – far below the UK’s 25% tax rate – business setup in Dubai offers fantastic advantages. Numerous businesses in Dubai also qualify for tax exemptions, further boosting the UAE’s attractiveness for relocating your business to Dubai.
3. Enticing visa and residency options
Moving yourself, your family, and your employees to the UAE is straightforward, too. The application process is streamlined and straightforward.
4. Desirable lifestyle
Sunny skies and year-round warm weather: The UAE lifestyle offers lots in the way of world-class amenities, entertainment, and leisure activities. It also boasts a low crime rate, world-class healthcare, and a vibrant cosmopolitan population.
5. Favourable location
Dubai is strategically located at the crossroads where East meets West, making it an ideal starting point for both business and leisure travel.
Things to consider before moving your business
Relocating your UK business to Dubai enables you to apply for a visa for yourself, family members, and employees. For entrepreneurs like yourself, various residency visa options are available. Additionally, the standard work visa is issued for two-year periods, which can be renewed. Worldwide Formations can help you with this crucial step with a minimum of fuss.
About Worldwide Formations
Worldwide Formations has been helping entrepreneurs and companies set up in Dubai and across the UAE for over 20 years. Our team of experts takes the stress out of business setup in Dubai and helps entrepreneurs like you relocate your UK business to Dubai. From choosing the right business activities, applying for a business license, helping you select the best office spaces to rent, and visas – our team handles everything quickly and efficiently.
Ready to get started? Contact Worldwide Formations to help build your success in Dubai – and beyond.
