How to Move Your UK Business to Dubai: An Expert Guide 

You can move your UK business to Dubai by choosing the right legal structure (Mainland, Freezone) and applying for the appropriate license. It is possible to operate your already running company or make an absolutely new business setup.

 According to the London Chamber of Commerce & Industry, more than 5000 British companies are registered and currently operating in Dubai. The new companies are also registering in the UAE due to low corporate tax, as compared to the UK, and the UAE’s booming economy. But restructuring your business from the UK to Dubai is not straightforward. It involves complications regarding UAE business setup processes, zone specific restrucutring, and registration procedures. 

In this article, we will discuss in detail; 

• Options for UK Companies to move their business to UAE
• Simple Process of Restructuring
• Requirements to move your business from UK to UAE
• Timelines and expert tips on whether Dubai is right for your business

Why Move Your UK Business to Dubai?

There are two major reasons why UK companies are considering restructuring their business in the UAE. 

Tax Rates: The UK has a tax rate of about 25% on profit margins of 250,000 £ and 19% on small profit margins. It’s a very high amount compared to the UAE tax rate. The corporate tax in the UAE is 0% in most of the free zones and only 9% if you have a Mainland company and profits exceed 375,000 AED per year. 

Strategic Business Location: Dubai has become a global business hub with its boundaries with Asia, the Middle East, and Africa. UK companies targeting international trading businesses find it very attractive and beneficial for their business perspectives. 

Key Advantages of Dubai Over the UK for Business Owners

Here are some factors explaining why the UAE is a better option for UK business owners. 

Is Moving Your UK Business to Dubai Right for You?

Dubai works best for businesses that; 

1. Operate digitally or internationally
2. Have high profit margins
3. Willing to get a residency in the UAE

While it’s less suitable for businesses that are 

1. Targeting the UK domestic market 
2. Intend to live and operate in the UK
3. Have low profit margins

Which Business Structures are Available in Dubai for UK Companies?

Here are some company formation options that Dubai provides for UK businesses. 

1. Opening a UAE Branch of Your UK Company 

A branch office means the business will operate under the UK parent company. It does not need to be registered as a separate legal entity. You will be operating from the UK, and you will also have a UAE local presence. It works best for businesses like consulting and marketing services. 

2. Setting up a New UAE Company and Winding Down the UK Entity 

It involves a complete transfer of assets and contracts to the UAE and winding down the business entity completely in the UK. It will be a fresh start, and you will have full control over the UAE company. 

3. Running Both Companies Simultaneously  

A hybrid or dual structure allows the UK operating company to serve in the UAE market as well. You can have a withholding company in the UAE. This options allow you to continue serving in the UK while your international business flows in the UAE as well. 

Free Zone Vs Mainland: Which is Right for a UK Business Moving to Dubai? 

The right choice always depends on the type of your business. Here are the major differences in operating the company in the free zone and the mainland. The choice is yours, which model suits your business the best. 

Step-by-step Legal Process to Move Your UK Business to Dubai

Follow these simple steps to restructure your business from UK to UAE. 

Choose Your Business Activity and License Type 

Your business activity is the most important thing in determining your license type and jurisdiction. Dubai issues three types of licenses; 

Select your business activity and then apply for the relevant license type. Professional licenses are the least expensive among other licenses in Dubai. 

Choose Your Jurisdiction 

Each zone in Dubai has its own cost and legal requirements. You must ensure the zone you are choosing complements your business activity. Most common free zones for UK businesses are; 

1. DIFC (Dubai International Financial Centre) 
2. ADGM (Abu Dhabi Global Market)  
3. DMCC (Dubai Multi Commodities Centre) 
4. DAFZA (Dubai Airport Free Zone) 
5. IFZA (International Free Zone Authority) 

Reserve Your Trade Name and Get Initial Approval 

Select a unique trade name for your business while staying compliant with UAE naming conventions. You can not use offensive terms, any political or religious reference, or a specific country name. 

Draft and Notarise Your Memorandum of Association (MoA)

Just like the articles of association in the UK, the UAE has a foundational document named the Memorandum of Association, which defines your company’s identity, ownership, and legal structure. The UAE notary must notarise your drafted MoA.  

Secure Your Office Space or Flexi Desk 

For a freelancing company, flexi desks or virtual offices are enough. But if you are registering a Mainland company, you have to secure a physical office space for smooth business operations. A lease agreement (Ejari) is necessary for the physical office. 

Apply for Residency Visas for You and Your Team 

You must apply for the Dubai residency visas for you and your team members who are supposed to work with your business. Emirates IDs and Medical fitness certificates for each applicant are also part of this process. 

Open a UAE Corporate Bank Account 

It is the crucial step that takes a bit longer than the other steps. You need to provide full documentation and KYC to streamline your bank account opening process. 

How Long Does it Take to Move a UK Business to Dubai? 

The time to register a company in Dubai depends on the zone in which you are setting up your business. 

• For a freeland company setup, the realistic timeline can be 6-10 weeks. 
• For Mainland company formation, it can take about 8-14 weeks.

Full Cost Breakdown: Moving a UK business to Dubai

The total cost for restructuring the business from UK to the free zone in the UAE is 15000-25000 AED, and for the Mainland it is 25000-40000 AED. 

Here is the full cost breakdown of various factors. 

Documents Required for Moving Your UK Business to Dubai

Here is a list of documents required for moving your UK business to Dubai. 

1. Business setup application with a full Business Plan 
2. Pictures and passport copies of all the stakeholders 
3. Copies of UK incorporation documents, such as the Certificate of Incorporation and Articles of Association
4. Share Certificates 
5. Proof of physical or virtual business address
6. Bank Statements of the past 6 months 
7. Board of Resolution
8. NOCs from previous company stakeholders

The Foreign, Commonwealth & Development Office (FCDO) of the UK must attest all the documents from the UK side. The documents that are to be submitted to the UAE official authorities must be translated into Arabic. 

Common Mistakes About Moving a UK Company to Dubai

Be aware of these potential mistakes while restructuring your business in the UAE. 

1. If you simply move to the UAE from the UK, it does not automatically make you a non-tax resident of the UK. You must meet the Statutory Residence Test (SRT). If you spend less than 16 days in the UK in a tax year, then the UK government considers you a non-tax resident of the UK. 
2. If you are running a Dubai company from the UK, HMRC will consider your company taxable. 
3. Improper documentation is a major concern for UK business owners. You should consider hiring a business restructuring consultant to manage your proper documentation. 
4. Ignoring 9% UAE corporate tax when you are earning profits of above 375,000 AED can also cause major penalties. 

Conclusion

Moving your company to the UAE is a strategic decision that can make or break your business. If you execute everything correctly, it can be a life-changing decision for your UK company. The UAE is considerably better than the UK in terms of tax benefits, ease of doing business, and global market access. UAE businesses also have strong growth potential. 

But the question, ” Is Dubai Right For Every UK Business? ”  is worth noticing. Not every UK business can thrive in Dubai if not planned carefully. If you are not aware of the legal and regulatory structure of the UAE, then you should hire a local business consultant in the UAE to guide you well. 

Move Your UK Business to Dubai With KWS & CO

Are you planning to move your UK company to Dubai for international business exposure and a tax-free environment? Consult our experienced business restructuring consultants at KWS & CO. We will assist you in the complete reengineering of your business, improving your business efficiency and profitability. Our team helps in reorganizing your company’s legal, operational, financial, and managerial structure. Contact us now at +971 50 966 9086 or send an email to info@kwsncompany.com. 

FAQs

Can I move my UK Ltd company to Dubai without closing it? 

Yes, by a hybrid or dual company structure, you can move your UK Ltd company to Dubai without closing it. Keep in mind that the tax regulations will be implemented if the company is operating and generating income. 

Can I get a visa for my family and me after moving to the UAE?

Absolutely, it is one of the major reasons people move their business to Dubai. When you have a UAE residence visa, you can sponsor your family members. 

What are the potential language barriers between the UK & UAE?

There are no significant language barriers between Uk and the UAE, because UAE residents easily speak and understand English. 

What are some cultural challenges for UK businesses operating in UAE?

Relationship first culture, influence of Islamic culture, and slow decision-making can be some cultural challenges for UK business owners.