• Corporate FX

Corporate FX Dubai

Business and Commercial FX Services Dubai

Dubai

Corporate FX Dubai

Are you a company with operations in Dubai which trades internationally?

Are you a UK company with clients and customers in Dubai?

Do you make payments or receive funds in AED?

Do you currently manage FX risks protecting AED into other currencies such as GBP?

If you are buying and selling currencies and require commercial FX pricing?

Do you utilise FX risk management solutions to help protect business margins?

Please reach out for a discussion. We support companies with a broad range of business FX solutions.

FX Services in Dubai

Foreign Exchange Dubai

With an area of around 1,510 square miles, the Emirate of Dubai is comparable in size to the UK county of Essex. Though small in size, it is certainly unique. The capital of the Emirate, also called Dubai, is home to around 3.4 million people and around 85% of these are expatriates from various countries around the World. Because of this, the Dubai FX market is huge. If you are a UK business, this article will give you a brief background on opening offices and starting operations in this ever-growing city and nation.

Dubai Overview

Background

Back in the 18th century, Dubai was a small fishing village. Some three hundred years later, it is a strategic hub with phenomenal growth. Though the biggest growth has happened in the last fifty years, people have been moving to the UAE for life and trade for more than three centuries. The growth in population has completely changed the country’s lifestyle.
Even thirty years ago, most people would have found it difficult to locate Dubai on a map, that’s if they’d heard of it at all. Nowadays, it is unrecognisable from the historical village it once was. And it is mostly thanks to oil.
In the 1960s, oil was found in Abu Dhabi. This discovery led to the unification of the United Arab Emirate Leaders and a slow evolution to the sprawling city of Dubai we see today.
Home to businesspeople, foreign investors and entrepreneurs from all over the globe, Dubai sees a population increase of around 1.5% each year as people seek to take advantage of its business environment and lifestyle. Attracted by the 0% tax, an easy incorporation procedure and a strategic location, Dubai has cemented its reputation as an international economic hotspot.
Though it isn’t overly complicated, moving to Dubai with the intention of operating a business does require a little bit of knowledge, especially when it comes to the operating in AED. Here are some of the most important things to consider.

Financial Services in Dubai

FX Financial Services

A significant advantage of running a business in Dubai is how little it costs to do so. Even considering added fluctuating currency exchange exposures. Company formation costs will vary depending on whether you have premises, where you are located and the number of employees you will have. If you’re establishing yourself in the free zone, you’ll pay much less than you would in the mainland, for example.

While this can all be done alone, as a newcomer to the country, it’s advisable to get help from financial services in Dubai. It is important to do your research before onboarding anyone to assist you financially and for advice.

Tax Laws in Dubai

Corporate Companies in Dubai

Each of the Emirates has their own regulations on corporate taxes. In Dubai, corporate taxation is limited to foreign oil or gas-producing companies. Branches of international banks are also subject to corporate tax too.

In January 2022, the UAE’s Ministry of Finance made an announcement that a federal Corporate Tax would be introduced from June 2023 on the net profits of all businesses. This will still be among the lowest corporate tax in the World and there will be exemptions too, including for employees and for businesses operating in the free zone.

Please always seek expert advice with reference to tax laws. We cannot guarantee information included here is up to date and accurate. Whilst we can offer lots of support specifically with FX dealing and risk management. You should kindly always acquire expert advice in all other areas.

Register Companies in Dubai

Dubai Corporate Companies

In order to acquire a business license in Dubai, you’ll need to register a trading name. The trading name will need to be approved and is a pre-requisite and core condition for getting a license. There are different fees for registering a company name. A normal trade name has no additional fees but there are additional fees for using abbreviations, numbers, specific words, trademarks, or the names of the region.

Dubai Tax Law

Dubai Tax Haven Status

The UAE is one of the fastest-growing tax havens in the World and this drives the main reason why so many businesses choose to have a base there. The trade regime is liberal and the economy is welcoming. In the free zone, there’s is 100% tax exemption.

Registering a Company

Registering a Company or Group of Companies

There are several steps to registering a company in Dubai.

Here is the general order you’ll need to follow to set up:

1. Finalise your company’s legal structure – this could be a joint venture or an LLC (limited liability company), for example, but there are many more options open to you here.

2. Select your desired business activities – the Department of Economic Development (DED) has a list of more than 2000 activities to select.

3. Choose your business location – this is one of the most important steps. You can register in the mainland, which allows free trading within Dubai and the United Arab Emirates, or you can launch in an offshore region or free zone.

4. Apply for a business license – all companies need to have a business license to operate and this is renewed every 12 months. There are different categories of licenses, including a professional, commercial, industrial, and tourism licenses.

Dubai Financial Services

Opening a Bank Account in Dubai

Once you’ve acquired your business license, you can then proceed to opening a bank account in Dubai. Besides the license, you’ll need to prepare corporate and legal documents, and submit your ID and relevant visas.

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