The United Kingdom is a lovely place to live and work for sure. However, relocation of your corporate operations from England to the United Arab Emirates can prove better. You can transfer a UK business to Dubai to make the most of the opportunities in the UAE.
It can truly become a transformative move as this option helps in offering numerous advantages to you. For instance, tax incentives, strategic location options, and a business-friendly environment. The number of the UK born entrepreneurs relocating is increasing with their small to medium scale enterprises.
This expansion was successful because they did shift their operations to Dubai diligently after proper planning. Mainly, they were drawn by the lucrative business prospects and lifestyle benefits of Dubai. Many high net worth individuals (HNWIs) are migrating from the UK to the UAE due to its favorable tax environment.
Who does not like it when they get the surety of a smooth transition? It is essential to understand the requirements for setting up new business in Dubai while moving operations from England. The massive taxation difference of the UAE is a huge perk for the expatriates from the UK.
Key takeaways of moving your UK business to Dubai
The UAE is always in the news, for the most travelers coming in for sightseeing, shopping, and business. Similarly, Dubai is getting the attention of businesses from all over the world. In the same way, Dubai has become a highly attractive destination for UK businesses seeking to expand internationally.
Let us give you some realistic insights to consider this transition. After-all, if the numbers don’t help you make up your mind, then nothing can. Also, humor is a very good medicine to combat anxiety.
- The recent years saw rise in inquiries by UK entrepreneurs and some SMEs about moving to Dubai.
- In the years 2023 and 2024, almost 20% of business relocation inquiries came from England/GB.
- Furthermore, what is wild is that the last half of 2024 saw this number grow to 45%.
- The last decade has seen a significant arrival of English expatriates in UAE with a 420% increase.
- Basically, almost all inquiries were about the corporate relocation to the UAE from the UK over the past five years.
Process to relocate your UK business to Dubai
You can transfer a UK business to Dubai with this step-by-step procedure to move in the right direction.
Now, we briefly look upon the key steps of the process to transfer your UK business to Dubai.
Pick suitable business structure
The first step in moving your business to Dubai is choosing the right legal structure. The decision depends on whether you plan to operate solely within Dubai or across the UAE. Taking into account your target market and ownership preferences, your options include the following.
- Free zone establishment (FZE)
- Limited liability company (LLC) in Dubai mainland
- Branch office of a foreign parent company
Gather essential documentation
You need to gather all necessary legal documentation. Next, you need to submit this legal paperwork to the Department of Economic (DED) and the regulatory authorities. Otherwise, you can file this documentation with your chosen free zone authority as well.
- Proof of your business activity
- Copies of the passports of business owners
- Photocopies of passports of shareholders and managers
- Rent/lease agreement for your office space
- Notarized Memorandum of Association (MOA)
- Signed and stamped Articles of Association (AOA), if applicable
- Any additional documents for your chosen free zone authority
Obtain suitable license
Understand the types of licenses applicable on your UK business from commercial/trade, industrial, or professional. Only then, you can apply for the license that is applicable to your business activities in the UAE. Submit your licensing application to the DED or the free zone with compulsory legal paperwork.
Pay the licensing fee and other regulatory dues to the authorities. Once, everything is found right, UK investors get the approval with the license. Begin working on your financial planning as managing costs is super essential while you move your English company to Dubai.
Benefits of shifting your UK business to Dubai
These are the advantages of relocating a UK business to Dubai, UAE.
- Complete foreign ownership: The UAE allows 100% ownership to the international entrepreneurs and investors. Also, it is applicable to both Dubai mainland and the free zones in Dubai. Plainly, you retain complete control of your business without needing a local partner.
- Unique geographic standing: The United Arab Emirates sits on a strategic geographic location, and boosts a thriving economy. Its crown jewel Dubai offers an ideal environment for business growth — be it small, medium, or large. While relocating your UK business to Dubai, you come face to face with diverse opportunities.
- Access to international markets: Having a business presence in Dubai provides you a strong foothold in the Gulf region. Markets in the Middle East and the North Africa (MENA) region are right in your hand. Likewise, you get complete accessibility to the markets in Asia, Europe, and Africa.
- Major tax perks: The UK has corporation tax rate of 19% (for profits under £50,000) to 25% (profits over £250,000). Whereas, the UAE has a nominal 9% corporate tax rate in place on the majority of the companies. The UK imposes personal income tax rate of 20% to 45%, while the UAE has 0% income tax.
- Skillful workforce availability: The UAE is already a home to diverse talent pool having expertise in many sectors. With every passing day, professionals from around the world are immigrating to Dubai, Abu Dhabi, Sharjah, and Ajman. Their abilities and English language fluency make staff acquisition easy, as you bring your UK company to Dubai.
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Conclusion
The United Kingdom is a developed country with many opportunities. However, there is a high cost of living and doing business there. You can move your UK business to Dubai to avail the prospects while cutting the operational costs.
This transferring of operations from the United Kingdom to the UAE offers several rewards. Among those pros, the cream is definitely the tax breaks that you get in Dubai. However, you must remain mindful of probable challenges that may come with this corporate relocation.
Without underestimating the challenges, proactively address them by using careful planning and the assistance of local expertise. By doing so, your UK company can successfully transition and thrive in Dubai’s dynamic market. Your next corporate move is easier with professional business support of advisors at KWS Middle East now.
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