Setting up a company in Dubai is becoming increasingly popular among European entrepreneurs. However, a common question arises: how can you serve EU clients legally and effectively with a Dubai-based company?
1. International Business Structures
You can efficiently serve EU clients with a Dubai company if you establish the right international structure:
• Free Zone companies are particularly well-suited for servicing a global client base.
• It is crucial to clarify whether your activities fall under EU regulations (such as GDPR).
• Partnering with an EU-based company or intermediary can help ensure easier compliance.
2. Invoicing and Financial Transactions
• As a Dubai company, you can invoice in EUR simply and directly.
• International transactions can be easily handled through Dubai banks..
• Attention must be paid to EU VAT regulations (e.g., applying reverse charge mechanisms)
3. Compliance and EU Regulations
• GDPR: If you handle the personal data of EU citizens, you must ensure compliance.
• VAT Registration: In certain cases, you may be required to obtain an EU VAT number.
• Tax Compliance: Due to EU CFC rules, it is important that your Dubai company conducts genuine business activities.
4. Offshore vs. Onshore Operations in Dubai
It is important to distinguish between offshore and onshore (e.g., Free Zone) companies in Dubai:
• Offshore companies: Limited local activity, primarily for international transactions. Due to low transparency, they are not always favorable when working with EU clients.
• Onshore/Free Zone companies: More transparent operations, real economic presence, and better acceptance under EU regulations.
Ha EU-s ügyfelekkel dolgozol, fontos, hogy dubaji céged ne csak adóelőnyt biztosítson, hanem valódi, szabályos üzleti struktúrával rendelkezz, így elkerülhetők a compliance problémák.
5. Conclusion
With careful planning, meeting EU compliance requirements, and maintaining transparent operations, a Dubai company can efficiently and successfully serve EU clients.
