Legislation Related to Foreign Investments in Dubai
Updated on Monday 28th November 2016
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The Investment Law in UAE offers protection to the business environment and allows a proper development of commercial relations with investors worldwide. The law is intended to eliminate administrative obstacles and to offer many benefits like tax exemptions for all overseas investors who open companies in Dubai. Our accountants in Dubai can provide you with information and details about the legislation related to the foreign direct investments (FDI) in Dubai and about the taxation system available.
Investments in Dubai
Each Emirate has implemented rules and regulations related to the investments. But there is no particular law that aims the foreign investments. Sectors like electricity, water, tourism, green energy, real estate or oil are on top preferences for businessmen who wish to start their activities here or make investments.
People who choose to invest in Dubai can profit from many tax exemptions. You should know that the Company Law in Dubai does not permit 100% ownership of enterprises in Dubai, but instead, you can take benefits from the Emirate’s free zones, which let businessmen establish companies and have full ownership. If you want to know more information about taxes that need to be paid when having a large company in Dubai, you may rely on our accounting services in Dubai.
The main conditions related to the business activities in Dubai
There are certain conditions for all commercial and business activities in Dubai stipulated by the Company Law of UAE and here we mention the following:
• you need industrial licenses to undertake manufacturing or industrial activities in Dubai;
• you need to obtain a commercial license to undertake trading activities;
• for professions, services or craftsmen a professional license is necessary.
The Dubai Economic Department is in charge of issuing the licenses for many business categories, with the help and authorization of certain ministries. On the other hand, you should know that UAE has signed numerous international treaties collaboration agreements with most countries worldwide.
If you have any other questions about the legislation related to foreign investments in UAE, or if you want business consultancy you may contact our accounting firms in Dubai.