Last year a large number of Europeans rushed abroad. An important issue for many was the opportunity to open their own business in a foreign country. The most demanded in this regard were two countries: Turkey and the United Arab Emirates. We decided to compare how much a business start up in Dubai and Alanya will cost.
Registration
First of all, you need to go through a series of bureaucratic procedures related to the collection of documents and company registration. Usually foreigners trust this to intermediary companies, because it is very difficult to understand the laws and regulations on your own. Both Dubai and Alanya have a turnkey business service. It includes consultation, collection of documents and company registration.
In Dubai, registering a turnkey business costs about $5,700. Subsequent business support will cost approximately $12,000 per year.
In Alanya, such services will cost around $3000
Other expenses
In Dubai:
$2,750 – One-time registration fee and registration fee
$5,500 annual license fee;
$550 — registration of memorandum and articles of association
$500 annual company card fee
$1400 – opening a bank account for a legal entity
$140 – company seal
$285 – opening a mailbox
$1430 – company card registration
In Turkey:
$2000 – LLC registration and account opening
$250 – opening personal cards, obtaining a TIN
Office rent
Dubai – from $4400 to $9500
Alanya – from $530 to $1500
Wages
Average salary in Dubai – $4000-$5000
About 80% of Dubai residents come from India and less developed Arab countries, i.e. people who come to earn. The minimum wage for the lowest-skilled employees will be about $500. But the employer must provide the employee with housing (stafhouse), and the tourism sector also has three meals a day. In addition, the employer is obliged to pay the foreigner a work visa – $1000.
UAE citizens either open a business themselves or work as highly qualified employees, i.e. the level of their salaries is not comparable with immigrants.
Average salary in Turkey – $1200 (minimum $452)
Alanya and its suburbs are home to a large number of local people who are ready to be hired, for example, in tourism or trade. On average, salaries start from $500. If you want to hire compatriots, they will have to apply for a work visa (cost $300). In addition, there is a limited number of foreign workers in the company.
Taxes
Dubai: VAT is 5%. But there are free zones that are not taxed. But in this case the business cannot go beyond the zone.
From June 1, 2023, a 9% corporate tax will be introduced in Dubai.
Turkey: VAT for companies involved in the agricultural sector of food production – 1%, for certain types of services, for example, for suppliers of food or books – 8%, the standard rate is 18%.
Corporate or income tax: for individuals – the rate is 23% from 2022.
For individual entrepreneurs – from 15% to 40%, depending on the profit.
Residence permit
You can get a residence permit in Dubai with investments in business from $136,000. A resident card is issued for 5 years.
To obtain a residence permit in Turkey, you just need to provide documents on the legal conduct of business. The primary residence permit is issued for a year.
In addition, in Turkey, when creating 50 jobs for Turks, one can obtain citizenship under a simplified scheme.
Depending on your goals and financial capabilities, you can choose where to do business: in Dubai or Alanya.
If you decide to open your own business in a country with a stable developing economy, Mayalanya is ready to help you with business registration and support. We have rich experience in the field of consulting services and legal support.
