Singapore and Dubai are two of the most attractive foreign investment destinations because of their developed economies. Also, both countries offer numerous incentives for foreign investors: while Dubai relies on a tax-free environment, Singapore adopts a different approach by offering industry-targeted tax allowances and exemptions. Then it all depends on the enterpriser to choose the suitable country to do business in. Below you will find a comparison between the company registration procedures in Singapore and Dubai in order to help you make a decision.
You can also take into consideration that our Singapore company formation specialists can offer information about the advantages of opening a company in the city-state.
Open a company in Singapore vs open a company in Dubai
Most foreign investors choose to open a company Dubai because of the fact that the local authorities levy no taxes on companies, except if they operate in the oil and gas and the banking industry. However, it should be noted that if you want to open a company in Dubai you will need a local partner who must own 51% of the company’s shares. Singapore, on the other hand, even if it levies a corporate tax, it allows full foreign ownership, therefore it is more advantageous to have full control over the business. Dubai only offers full foreign ownership in its free zones, however a free zone company may not operate outside the free trade zone. As for the actual company formation process, both Singapore and Dubai offer nearly the same advantages.
Company registration procedures in Singapore and Dubai
Broken down into steps, the company formation process in Singapore is:
- – company name reservation, company and tax registration which can be completed online;
- – making a company seal;
- – registering for employment purposes.
The whole procedure can be completed in 3 days.
The company registration procedure in Dubai consists in:
- – applying for a company name;
- – filing the incorporation documents and applying for a business license;
- – registering for employment purposes.
Compared to Singapore, it takes about a week to register a company in Dubai. This also leads to higher costs in the case of Dubai, while business setup costs are significantly lower in Singapore.
If you have decided to open a company in Singapore and need assistance, please feel free to contact our company incorporation agents.