Are you an Australian business owner looking to expand your reach and tap into new markets? If so, moving your business to Dubai, UAE might be a smart move. Dubai is known for its strategic location, business-friendly environment, multicultural workforce, and tax benefits. Dubai also has a large and well-established expat community (around 80% of the total population).
With so many benefits, Dubai is an attractive destination for companies seeking growth and success. Therefore, if you’re eager to expand your business or move Australian business to Dubai, we’ve got you covered. Here we will explain everything you need to know about how to successfully move your business from Australia to Dubai.
Why Move Your Australian Business to Dubai?
There are several compelling reasons why moving your Australian business is the right choice:
1. Tax Advantages
Dubai has a limited corporate and zero personal income tax rate, which can lead to significant savings compared to Australia's tax structure. Additionally, there are no capital gains or inheritance taxes.
2. Free Zones
Dubai offers various free zones catering to specific industries. These zones provide additional tax benefits, streamlined business setup processes, and customs exemptions.
3. Repatriation of Profits
Businesses can freely repatriate all their profits and invest capital out of the UAE.
4. Ease of Doing Business
Dubai has simplified business setup procedures and offers government support for foreign investors.
5. Skilled Workforce
Dubai offers a large pool of skilled professionals from around the world.
6. High Quality of Life
Dubai offers a luxurious lifestyle with excellent infrastructure, amenities, and safety standards. This can be attractive for employees and their families.
7. Year-round Outdoor Operations
Dubai's consistent climate allows for extended outdoor operations compared to Australia's seasonal variations.
8. Geographical Isolation
Due to its distance from major economic hubs, Australian businesses may have a smaller pool of potential customers to target domestically. But Dubai's strategic location offers access to a vast and growing consumer base across the Middle East, North Africa, and Asia. This expands the potential customer reach beyond Australia's domestic market.
Types of Visas for Australians Moving Their Business to Dubai
Australians looking to move their business to Dubai have a couple of visa options available:
1. Investor Visa
This is the most likely route for business owners. It grants a residency visa for you and your family for three years, renewable for additional three-year terms. To qualify, you'll need to make a significant investment in a Dubai-based business.
The minimum investment amount varies depending on the type of business activity, but it's typically in the range of AED 15,000- 30,000.
2. Freelance Visa
This option is suitable for Australians who plan to operate a consultancy or provide freelance services in Dubai. It allows you to live and work in Dubai for one year, with the possibility of renewal. To qualify, you'll need to demonstrate expertise in your field and secure clients in Dubai.
How to Properly Move Your Australian Business to Dubai?
Moving your Australian business to Dubai involves careful planning, adherence to legal regulations, and strategic decision-making. Here's a step-by-step process:
Step 1: Research and Planning
Thoroughly research the Dubai market to ensure your business offering aligns with local needs and competition.
Step 2: Choose a Legal Business Strcuture
Decide on the most suitable legal structure for your Dubai-based business. The most common option is LLC. Other options include a free zone establishment, a mainland company, or a branch of your Australian company. Each has its own advantages and limitations.
Step 3: Choose a Location
Free Zones: Dubai offers numerous free zones catering to specific industries. These zones provide benefits like tax exemptions, streamlined bureaucracy, and 100% foreign ownership. Research free zones that align with your business activity.
Mainland: Setting up in the Dubai mainland allows greater flexibility in business activities but may require local partner for some business activities.
Step 4: Choose a Business Name
Pick a unique and appropriate business name that adheres to Dubai's naming conventions. You can check name availability through the Department of Economic Development (DED).
Step 5: Gather Required Documents
Gather the necessary documents for registration, which may include:
- Passport copy of all shareholders
- Passport size photographs
- Business plans
Step 6: Obtain Business License
Visit the relevant government departments to complete the registration process. This may involve the Department of Economic Development (DED) and the chosen free zone authority (if applicable).
Once your company setup is complete, acquire the necessary business licenses from the relevant authorities. License requirements will vary depending on your business activity.
Step 7: Secure a Visa
Depending on your role in the business (owner, employee, freelancer), apply for the appropriate visa type. Common options include Investor Visa, Employment Visa, and Freelance Visa. If you plan to employ staff, you'll need to sponsor their employment visas.
Step 8: Open a Corporate Account
Once your business is registered, open a corporate bank account in Dubai to manage your finances.
Step 9: Other Considerations
If you plan to import equipment or supplies from Australia, arrange for international shipping and customs clearance in Dubai. Understand your Australian and UAE tax obligations as you transition your business. Consider consulting a tax advisor for guidance.
We highly recommend partnering with a reputable business setup consultant in Dubai like Shuraa to efficiently get through the legalities and processes of company setup in Dubai.
Tax Considerations for Australians Business Moving to Dubai
Dubai offers a 0% corporate tax rate on profits up to AED 375,000 (around AUD $103,000) generated from business activities within the emirate. This can be a significant tax advantage for small and medium-sized Australian businesses.
Profits exceeding AED 375,000 are subject to a standard corporate tax rate of 9%. This is still considerably lower than Australia's company tax rate.
There is no personal income tax levied on individuals in Dubai. This can be a significant financial benefit for business owners and employees. It's essential to note that Dubai does have a 5% Value Added Tax (VAT) applicable to some goods and services. However, specific exemptions are depending on the nature of your business activity.
How Much Does It Cost to Setup a Company in Dubai?
The cost of obtaining a license generally starts from AED 12,000* but can vary significantly depending on several factors, including:
- Business size and complexity
- Chosen business structure
- Visa requirements
- Approvals & license
- Office space
- Banking fees
The best way to get a more accurate estimate for your specific situation is to consult with one of our expert business relocation specialists in Dubai.
Dubai Awaits Your Business!
Australia offers a fantastic landscape to build a business, but for those with global ambitions, there's a world of opportunity waiting just beyond the horizon. Dubai's strategic location streamlined business setup, and tax-friendly environment create a launchpad for your global success.
Partner with a reputable Dubai business consultant to navigate the setup process. We'll handle the process – company registration, licensing, and legalities to make everything hassle-free for you and your business. Contact us today for a free expert consultation.
Frequently Asked Questions
1. Can an Australian company do business in Dubai?
Absolutely! Dubai actively welcomes foreign businesses. There are two main options: setting up a branch of your Australian company in a Dubai-free zone or establishing a limited liability company (LLC) on the mainland. Each option comes with its own set of regulations and benefits.
2. What are the visa requirements for myself and my employees?
The specific visa requirements will depend on your chosen business setup. Generally, investors, company owners, and employees can obtain visas sponsored by your Dubai-based company.
3. What are the benefits of using a business consultant in Dubai?
A reputable Dubai business consultant like Shuraa can streamline the entire setup process. They can assist with everything from choosing a business structure to handling legalities and visa applications.
