Dubai Mainland company with 100% foreign ownership

[andrew28fl]

Hello wise ones,

I am a Canadian who is currently living in Tbilisi, Georgia. I am a bit disappointed with local business opportunities in Tbilisi. I am considering a move to Dubai, UAE. I have 7 figure investments in real estate in India, and looking to transition out to a new destination.

I read that UAE/Dubai have opened up 100% foreign ownership for Mainland companies as of December 2020. Not sure if I post links here, but you can Search Google News. Some questions regarding this and business opportunities in Dubai in General:

1. Does anyone have any experience/inputs regarding Mainland companies in Dubai? Is 100% foreign ownership really allowed?

2. Are there any specific sectors that are off limits when it comes to Mainland companies with foreign owners? I am thinking Restaurants, Cafes, Retail establishments, Grocery stores. Low risk, low reward type businesses.

3. How is the business environment in Dubai in general? I hear that Real Estate is struggling. But are traditional brick and mortar businesses doing okay?

4. Are Mainland companies also tax free for the most part? Does the 5% VAT apply? Any other taxes I should be aware of?

5. How would one go about getting residency or visa as a Mainland company owner? What are the investment requirements to qualify for residency or visas?

TIA for your time.

Andrew

 

[Fred]

Hi Dear,

beside of the news nothing happened till now. It's already known that once this is coming in practice it's required to have 3-4m AED in the bank account sitting as some kind of insurance that there will be no wrong doing.

Mainland Companies have the requirement to register for VAT, charge 5% VAT, need bookkeeping and due to the VAT some kind of audit.

The Company Formation grants you the Residence Visa.

My advis for you is tip your toe into the UAE with a Freezone Company and in case it's really required later on - setup a Branch of the Freezone Company in the Mainland - most of the time it's not necessary.

 

[andrew28fl]

Thanks for answering Fred. Does the Freezone Company have the 5% VAT over a certain limit? Also, does that entity need to maintain financial records, accounts and have them audited?

 

[Fred]

Thanks for answering Fred. Does the Freezone Company have the 5% VAT over a certain limit? Also, does that entity need to maintain financial records, accounts and have them audited?

5% VAT from the very beginning.

Maintain financial records, accounts and audit due to VAT is all necessary.