Question 1

What is the difference between a Mainland and a Freezone Company?

Accepted Answer

A Freezone Company is a company incorporated in a Free Zone in the UAE.

The advantages of a free zone are a simpler formation process, lower formation costs, a little less bureaucracy, no corporate tax even from June 1st, 2023 if there is "qualified income" (important substance!)

The disadvantage of a free zone is that business with local companies on UAE territory is only possible to a very limited extent.

A mainland company is a company incorporated on the territory of the UAE.

The advantages are that it is usually easier to get a bank account. In addition, transactions with local companies on UAE territory are also possible.

The disadvantages are: slightly higher start-up costs, a more complex start-up process and the corporate tax introduced from June 1st, 2023.

Question 2

How long does the entire process take (company formation, visa, relocation)?

Accepted Answer

1.) Company formation (duration approx. 3-5 days)

2.) Visa process: (duration approx. 5-7 days):
We take care of the process with the authorities so that you receive your entry permit as quickly as possible.

3.) Health check (duration approx. 30 minutes): In order to receive a residence permit, a health check (blood test, lung X-ray) must be carried out.

4.) Emirates ID (duration approx. 30 minutes): Your biometric data is required to issue your Emirates ID. This is to be carried out in the same way as the health check in Dubai. We can accompany you to this as well as to your health check.

5.) Once you've received your Emirates ID, life in Dubai really begins. By purchasing Emirates ID, you can rent an apartment, get a mobile phone contract, get a local driver's license, open a bank account and enjoy life in Dubai. We would be happy to support you here as well.

Question 3

How does the founding of a mainland company work and how long does this process take?

Accepted Answer

The incorporation of the Mainland company proceeds as follows:

As your reliable partner, we are of course at your side every step of the way.Duration approx. 1-3 working days.

Note: In principle, it is now also possible to set up a mainland company online. For this, however, an appointment for a video call must be requested from the Dubai Courts. This is not always possible in a timely manner. In this case, additional fees of 2,000 - 3,000 € also apply. We therefore always recommend founding a mainland company locally.

Question 4

What is the visa process for company founders?

Accepted Answer

The following steps - in which we will of course support you and take over all communication with the authorities - are necessary:

4. Health check (approx. 30 minutes):- Blood collection (examination for HIV & hepatitis)- X-ray of the lungs (examination for tuberculosis) 
5. Biometric scan: Taking fingerprints. This date is assigned by the authorities. An appointment is often possible in 1-2 days, but sometimes it can unfortunately take 1-2 weeks. (about 30 minutes)

Good news: Since December 2022, the visa is no longer stuck in the passport. You no longer have to hand over your passport after the biometric scan.

Important: In order for your visa not to be cancelled, you must enter the UAE every 180 days.

Question 5

Do I need residency in Dubai?

Accepted Answer

Residence is not required to acquire a trading license.

In practice, moving to the Emirates is advisable in order to enjoy the tax advantages.

Opening a bank account without a residence in Dubai or the Emirates is also becoming more and more difficult due to increasingly strict money laundering regulations.

Question 6

Trading license and no longer paying taxes?

Accepted Answer

NO! Even if many dubious companies advertise it, this is by no means the case and entails high risks.

In Germany, Austria and actually all European countries, the tax liability depends on the domicile or habitual abode.

Many startup companies completely ignore this fact and thereby (knowingly or unknowingly) drive their customers into tax evasion.

We won't hide from you the problems involved in moving away professionally and will be happy to put you in touch with qualified tax consultants in Germany and Austria in order to provide you with the best possible support for your tax move.

Question 7

What do I have to take into account under tax law in my home country before moving away (relocation)?

Accepted Answer

We won't hide from you the problems involved in moving away professionally and will be happy to put you in touch with qualified tax consultants in Germany, Austria and all EU countries in order to provide you with the best possible support for your tax move.

For questions related to tax law, we work together with reputable and experienced partners (tax consultants, lawyers, notaries) in the EU area.

Question 8

Corporate tax from 01.06.2023 ?

Accepted Answer

From 1 June 2023 a corporate tax of 9% will be introduced.

However, this is only due from an annual profit of 375,000 AED (approx. 95,000 euros).

Mainland companies are fully affected and are subject to tax at a rate of 9% on any winnings in excess of the AED375,000 allowance.

Freezones remain exempt from corporate income tax if they have "qualified income". For this, however, there must be substance in the UAE. Income or profits that do not fall under "qualified income" are also fully taxable above the allowance of AED 375,000.

Question 9

No taxes in Dubai or the United Arab Emirates?

Accepted Answer

The rumor is only partly true!

Currently there is no income or wage tax, no capital gains tax, no corporation or company tax, no real estate income tax or other taxes that affect entrepreneurs or private individuals.

The only tax that currently applies is a sales tax of 5%.

In addition, a corporate tax of 9% will be introduced from June 2023. However, this is only due from an annual profit of 375,000 AED (approx. 95,000 euros). Free zones remain exempt from corporate income tax if they have "qualified income". For this, however, there must be substance in the UAE.

Question 10

Do I need a tax advisor in Dubai?

Accepted Answer

It depends on your personal situation.

From a turnover of 375,000 AED, for example, it is necessary to register with the FTA (Federal Tax Authority) for a sales tax number - even if you do not generate any local sales that are subject to sales tax.

In addition, from June 1st, 2022, a corporate tax of 9% will be introduced for mainland companies and, in some cases, also for Freezone companies.

But of course we won't let you down here either and will put you in touch with German-speaking tax consultants in Dubai or the UAE, who will support you with all your concerns.

Question 11

Why Dubai?

Accepted Answer

Dubai and the United Arab Emirates are not only attractive for a move because of their low taxes (5% sales tax, no corporate income tax, no wage tax, no capital gains tax) but also because of their excellent infrastructure, good health care and moderate living expenses.

Question 12

How is life in Dubai and the Emirates?

Accepted Answer

Even if the European media often want to portray it differently, life in Dubai can be imagined as in any major European or American city - with the difference that the crime rate is much lower.

Dubai is a thriving metropolis that offers everything you could imagine.

Question 13

How do I find an apartment in Dubai?

Accepted Answer

Similar to Europe, the Emirates also have platforms such as dubizzle, bayut and many more.

Once you've received your Emirates ID, you're ready to sign a rental agreement and move into your home.

In contrast to Europe, rent in the Emirates is often paid a year in advance or in 4 checks (in advance). 
We would also be happy to help you with this.

Question 14

What do I have to consider after I move?

Accepted Answer

Here, our customers receive a checklist to provide you with the best possible support.

In principle, it is important to find an apartment, take out suitable insurance, obtain a local driver's license (for Germans and Austrians within 30 minutes, as this is recognized in the Emirates), conclude a local mobile phone contract, etc.

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