Dubai has become a global hub for business. Every day, companies from across the globe decide to relocate or open a branch in this vibrant, dynamic city; more than half of the world’s largest global companies are now established in the UAE. So, what’s in it for Australian businesses? In this article, we will explore how to move a business from Australia to Dubai.
We will focus on:
- Benefits of moving your business from Australia to Dubai
- Company structures available for Australian businesses in Dubai
- How to move a business from Australia to Dubai: Step-by-step
- Documents required to move a business from Australia to Dubai
- Cost of living in Australia vs Dubai
- About Charterhouse Lombard
Considering making the move to Dubai? Feel free to get in touch with our expert team at Charterhouse Lombard to discuss your next steps.
Benefits of moving your business from Australia to Dubai
Dubai offers countless opportunities and benefits for Australian businesses, including:
- Tax benefits
The UAE is renowned for its competitive tax rates, which include 0% personal income tax, 0% capital gains tax and some exemptions to corporate taxes, depending on the jurisdiction you choose for your business and whether you meet de minimis rule requirements. In contrast, business owners in Australia can expect to pay 25-30% corporate tax rates and up to 45% income tax, depending on income brackets.
- Business and investment opportunities
Dubai ranks as one of the best places in the world to do business according to multiple ranking systems, thanks to its low operational costs, business-friendly policies and cutting-edge infrastructure. It is a global hub for finance, technology, logistics and real estate, with free zones dedicated to specific industries. Australia boasts a stable business environment, but businesses tend to face higher operational costs, regulatory complexity and more extensive taxation.
- Strategic location
Dubai is conveniently located at the gateway between East and West, at the heart of Europe, Africa and Asia. This makes it easier to do business with multiple markets thanks to shorter time zone differences and flights. The city boasts excellent connectivity through the world-renowned Dubai International Airport and state-of-the-art seaports too. Australia, on the other hand, is geographically distant from many global markets, which can increase shipping costs and logistical challenges.
- Cutting-edge infrastructure
Dubai boasts luxurious living standards, world-class amenities and state-of-the-art infrastructure. It is home to some of the most iconic structures in the world, such as the Burj Khalifa and Dubai Marina, and boasts a sophisticated public transportation system. Dubai also offers high-speed internet, smart city technologies and a well-developed business ecosystem primed for tech startups and international companies. While Australia offers modern infrastructure, the scale and pace of development are generally more spread out.
- Ease of doing business
Dubai offers streamlined processes for setting up a company, obtaining visas and acquiring permits. Free zones, in particular, offer speedy procedures with minimal red tape. In Australia, businesses face more regulatory hurdles and administrative processes, which can make setting up and maintaining operations more time-consuming and costly compared to Dubai's more straightforward approach.
Company structures available for Australian businesses in Dubai
When it comes to setting up your business in Dubai, there are a few company structures available. The two main company setups are mainland and free zone.
Mainland company structures operate within the UAE's national economy and are registered with the Department of Economic Development (DED). Business owners can now enjoy 100% foreign ownership for many business activities in the mainland, though some sectors still require a local partner. Other key features include a broad range of activities spanning sectors and industries, easy trade within the UAE and internationally and no fixed minimum capital requirement. Mainland companies are subject to the corporate tax rate of 9% on profits above AED 375,000 and VAT at 5%, and require a physical office space.
Free Zones in Dubai are special economic zones that offer business-friendly environments tailored to specific industries, such as technology, media and HR. These zones provide a range of benefits, including full foreign ownership, simplified setup and tax incentives. Other key features include 100% foreign ownership, flexible workspace options and incentives such as no import/export duties and exemptions for some businesses. However, to conduct business within the UAE mainland, they typically need a local distributor or agent.
The choice between mainland and a free zone setup depends on your business strategy and needs. You can get in touch with a member of our team to discuss the specific requirements and benefits of each option based on your business needs and long-term goals.
How to move a business from Australia to Dubai: Step-by-step
Moving a business from Australia to Dubai has been made simpler through supportive government regulation and processes, but it still requires planning. Here’s what to expect in four steps:
- Research and choose your business structure
Decide where you want to relocate your business and whether you will be opting for a mainland or free zone setup.
- Compile your documents
You will need to ensure you have completed your application and collated your documents ready for approval. Make sure you have registered your trade name and that it complies with UAE naming laws.
- Apply for your license
All businesses operating in Dubai need a license. These fall into six categories: industrial, commercial, crafts, tourism, agricultural and professional. Fees and processing times vary depending on the jurisdiction.
- Set up your office and staff
Once you have your license, you can start operating your business. At this stage, you can begin applying for residency visas for staff and securing appropriate office spaces.
Documents required to move a business from Australia to Dubai
To move your business from Australia to Dubai, you will need to provide specific documents. These typically include:
- Passport copies
- Visa copies
- Emirates ID copies for UAE residents
- A No Objection Certificate (NOC)
- Proof of registered office
- Trade name reservation certificate
- Memorandum of Association (MOA) and Articles of Association (AOA)
- Business Plan
- Bank reference letter
- Tax registration certificate
This is not an exhaustive list; you may require further documentation, such as additional approvals. If you are unsure about the process or requirements, feel free to get in touch with our expert team of advisors to confirm that you have everything in order.
Cost of living in Australia vs Dubai
Dubai boasts significant financial benefits and is more affordable in several key lifestyle areas, which could significantly boost your bottom line. When it comes to housing, Dubai tends to be cheaper than comparable cities in Australia. This helps businesses reduce overhead costs associated with office spaces and, if relevant, employee accommodation. Transport is also cheaper in Dubai, thanks to lower petrol prices and affordable public transportation. Dining out, depending on the kinds of establishments you choose to visit, is more affordable too. Utilities and internet are generally lower, making it cheaper to run offices, warehouses and storage units.
The result? A higher quality of life with more disposable income.
About Charterhouse Lombard
Charterhouse Lombard brings over 20 years of expertise in helping individuals and entrepreneurs from Australia to unlock the benefits of business in the UAE. We deliver top-tier services, covering everything from free zone company formation and offshore business setup to family relocation support and assistance with finding rental properties. Whether you're an Australian national planning to relocate to Dubai to be closer to family or looking to boost the bottom line of your business, we’re here to guide you through the process. Get in touch with our team today to request a callback.
