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At DG Legal, with our new operations in Dubai, we are launching a series of articles in which we will examine investment and living opportunities in depth. In this series, we will address in detail critical topics such as the company formation process in Dubai, property rights, tax regulations, real estate acquisition and residence permits. Stay tuned to learn more about the unique opportunities and the legal infrastructure that Dubai has to offer.
Dubai, one of the most dynamic emirates of the United Arab Emirates, has become one of the key points of global investment thanks to its strategic location, advanced infrastructure and diversified economic structure. By moving away from a sector model based on oil revenues and aiming at sustainable growth in the trade, finance, tourism and technology sectors, Dubai offers significant opportunities to international investors. This article addresses the basic steps in the process of establishing a company in Dubai and the points that should be known.
The UAE offers special incentives for companies to be established in Dubai free zones. The purpose of regulating the principal matters of a newly established company, such as capital, taxes, labour costs and ownership, is to make it easier for foreign investors to set up a business comfortably and on a permanent basis. Within this process, which the UAE has freed from bureaucratic obstacles, the country's low inflation rate and stable economy also offer foreign investors a financially predictable market.
The first thing that a foreign investor wishing to establish a company in Dubai must determine is whether the company will be established in a free zone or on the mainland. The regulations applicable to companies established in free zones and on the mainland differ in almost every respect, and this important decision changes the entire process. Free zone investment, which is more frequently preferred by foreigners, has a legal infrastructure designed to facilitate the structuring of foreign capital within the emirate. To briefly mention the advantages of establishing a company in free zones for international investors, the first reason that can be listed is that the applied tax policy and the investor's tax burden are very light compared to our country. The openness of the Dubai government to foreign ownership and the absence of a local partner requirement also make investing in the emirate attractive. Determining the company structure, licence applications, sponsorship, visa procedures for employees and tax processes are all aimed at enabling the investor to enter the market as quickly as possible. In Dubai, property ownership is subject to an easy and fast process, both for establishing a company and for purchasing a home. Nevertheless, free zones offer a more closed economic ecosystem compared to the mainland, and their interaction with the other emirates of the UAE varies in degree.
In addition to establishing a company, a long-term residence permit called the "Golden Visa" has been introduced for investors who wish to build a new life in Dubai through their investments. In general terms, this residence permit gives investors the opportunity to settle in Dubai for the long term and to benefit from economic opportunities. Issued for a period of 2 or 10 years, the residence permit covers not only the investor but also his or her family. There is no possibility of applying for United Arab Emirates (UAE) citizenship through real estate; however, the Dubai government encourages foreign investors to settle permanently and to grow their businesses through this residence permit.
In conclusion, Dubai is a commercial hub that stands out for the economic opportunities and the ease of doing business that it offers to foreign investors. The tax advantages and the ease of property ownership in the free zones are important factors in investors' preference for Dubai. The fact that the Dubai free zone is not entirely subject to UAE legal regulations and that it has been integrated into international law is also a factor to be taken into consideration. At the same time, while economic dynamism and continuity make Dubai a predictable and safe market, long-term residence permit options such as the Golden Visa also support investors in making long-term business and life plans in Dubai. Although the process of doing business in Dubai requires strategic decisions and good planning, the opportunities and the support offered make this process more attractive. In the later articles of the series, these opportunities will be examined in depth together with their legal regulations.
