The Dubai Biotechnology and Research Park is part of the Dubai Holding, one of the largest investment companies in the Emirate, and was launched at the beginning of 2005. The Biotechnology and Research Park, shortly known as DuBiotech, is the first free zone in the world dedicated to the Life Sciences industry.
Below, our company formation agents in Dubai provide useful information on the main attraction points of Dubai Biotechnology and Research Park which is also known as Dubai Science Park.
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The main business forms available in Dubai Science Park
Foreign investors who want to open companies in a Dubai free zone and choose Dubai Biotechnology and Research Park can employ one of the following business forms:
- free zone establishments which require a single shareholder who can be a foreign investor;
- free zone companies which follow the registration requirements of Dubai limited liability companies;
- branch offices of foreign companies which must comply with specific regulations imposed by the free zone authority;
- branch offices of local companies registered in the UAE which must also comply with the local rules.
Our company registration advisors in Dubai can offer detailed information on the requirements related to starting a free zone company in Dubai Biotechnology and Research Park.
DuBiotech provides numerous opportunities to foreign investors wanting to set up companies there, among which:
- company registration and licensing services,
- leasing and governmental services,
- storage spaces, such as warehouses and land plots,
- office spaces and laboratories.
For information about all available services in the Biotechnology and Research Park, you can also ask our company incorporation agents in Dubai.
The regulatory environment in Dubai Biotechnology and Research Park
The legal framework in the Dubai Biotechnology and Research Park is in accordance with the UAE legislation and is also in accordance with all international standards established by organizations like the Food and Drug Administration and the World Health Organization in the life sciences sector.
The Government together with the Foundation for Research and Innovation supports companies conducting research activities in the medical, environmental and agricultural industries. DuBiotech is currently working on a grant policy for Dubai companies that will positively influence the economy.
If you want to open a company in Dubai Biotechnology and Research Park, you can rely on us for full business incorporation services.
Licensing options in Dubai Biotechnology and Research Park
As mentioned above, the main activities that can be conducted in Dubai Biotechnology and Research Park Free Zone are related to science and among these, the following licenses are available for those interested in operating here:
- licenses for marketing activities;
- permits for research and development activities;
- industrial activities can also be completed here;
- import-export and warehousing activities are also permitted;
- consultancy activities can also be provided.
If you need help in starting a business in DubioTech, our local consultants can help you.
We also invite you to watch our video on the Dubai Biotechnology and Research Park:
How to open a company in DuBiotech?
In order to set up a company in the Dubai Biotechnology and Research Park, foreign investors are required to submit the following documents:
- an application for company registration,
- a licensing application,
- a business plan,
- copy of the Dubai company manager’s passport,
- copy of the director’s passport,
- the Dubai experts handling the registration procedures documents, if any.
The corporate entities opening subsidiaries or branch offices in DuBiotech are required to submit the articles of association of the parent company with the Companies Register in Dubai.
Starting a free zone company in Dubai Science Park
Before starting the company incorporation procedure in Dubai Biotechnology and Research Park is it important to note that the requirements differ based on the shareholding structure of the business. A free zone company can be registered with one of the following shareholding structures:
- a single natural person;
- a single shareholder as a corporation;
- a natural person and a corporate one as shareholders.
It is useful to know that the share capital requirements for starting a free zone company in DubioTech depend on the activities to be completed.
The list of documents to be filed is usually more extensive when at least one of the shareholders is another business entity as it requires to submit more information.
The following documents need to be filed when starting a free zone company in Dubai Biotechnology and Research Park:
- a business plan;
- information about the shareholder (passport copy in the case of natural persons and copy of registration certificate in the case of corporations);
- passports of the proposed directors and managers;
- information about the representative of the company.
It also useful to note that the minimum share capital for starting a free zone company in Dubai Biotechnology and Research Park is 50,000 AED, however, the minimum amount increases to 300,000 AED if the company engages in one of the following activities:
- manufacturing and production of therapeutic goods;
- manufacturing and production of food;
- activities in the agricultural, horticultural and forestry sectors;
- environmental activities;
- manufacturing and production of medical and scientific devices and equipment;
- manufacturing and production of special supplies.
For such activities, the free zone authority will issue specific licenses that reflect the activities of the Dubai free zone company.
You can rely on us if you want to open a Dubai company in Science Park.
Setting up a branch in DubioTech
The creation of a branch office of a foreign or UAE-based company is not subject to specific minimum share capital requirements, however, the corporate shareholder is required to submit a copy of the license and certificate of incorporation.
Our company formation agents in Dubai can assist with the creation of a branch office in Dubai Biotechnology and Research Park.
What are the benefits of establishing a company in DuBiotech?
Among the many benefits when registering a company in the Dubai Biotechnology and Research Park, there are:
- full foreign ownership is permitted,
- full repatriation of capital and profits is allowed,
- no taxes on operations,
- customs exemptions.
Here are a few other interesting facts about starting a company in Dubai Biotechnology and Research Park:
- 100% ownership and corporate tax exemption are available for up to 50 years;
- companies operating here can obtain long-term leases for minimum periods of 15 years;
- the laboratory facilities available in DubioTech span on an area of 256 000 square feet;
- the free zone also hosts 25 warehouses of 5 000 square feet each;
- companies engaged in import-export activities benefit from special customs exemptions.
Taxation of companies in Dubai Biotechnology & Research Park
When it comes to the taxation of companies in Dubai Biotechnology & Research Park, these must comply with a few regulations, some of them regarding the introduction of the value added tax. Our company formation specialists in Dubai explain below how companies are taxed in Dubai Science Park. You can also rely on us for assistance in registering a business in Science Park or in Dubai mainland.
What are the taxes to be paid by companies in this free zone?
It is a well-known fact that Dubai is a very advantageous emirate from a taxation point of view. The lack of the income tax on individuals and companies expands in Dubai’s free zones, including in Dubai Biotechnology & Research Park. This means that companies operating here will not pay any corporate tax under certain criteria. Only branches of foreign companies established in this free zone will be applied a 20% tax on their corporate incomes.
Taxation of foreign shareholders in companies set up in Dubai Science Park
One of the greatest advantages of the Dubai Biotechnology & Research Park is that it allows for full foreign ownership. Even if foreign investors, natural persons or companies, will not face any tax issues in Dubai Biotechnology & Research Park, they need to consider the following
- they can be taxed in their home countries on the incomes generated in the Dubai Biotechnology & Research Park;
- if their home country has signed a double tax treaty with the UAE, certain tax exemptions are available;
- under the same double tax treaties, if no exemptions are available, deductions could be obtained by the foreign owner of the company;
- the operations completed by companies owned by foreign investors are free of taxes in Dubai Biotechnology & Research Park.
Our company registration consultants in Dubai can help foreign entrepreneurs interested in registering companies in Dubai Biotechnology & Research Park.
The VAT and the excise tax in Dubai
One of the newest taxes introduced in Dubai is the value added tax, as the excise tax already existed for a while. An important aspect to consider when setting up a free zone company in Dubai is that it must pay both the value added and the excise taxes when selling goods and services, including in the Dubai Biotechnology & Research Park.
The VAT is established not only at one of the lowest rates in the region, but in the world – 5%. However, certain deductions and exemptions from this tax apply in Dubai Science Park. Among these, healthcare services are exempt from the VAT, therefore companies in Dubai Biotechnology & Research Park can benefit from VAT exemptions as long as they provide such services.
When it comes to the excise tax, it applies only on the sale of certain products such as tobacco, carbonated drinks, and unhealthy products. In Dubai Biotechnology & Research Park, only companies selling such products will be applied the excise tax which represents 50% or 100% of the price of these goods.
Tax compliance for companies in Dubai Biotechnology & Research Park
Even if they will not be imposed with the corporate tax, companies in Dubai Biotechnology & Research Park must register with the tax authorities and file tax returns which, in the case of foreign shareholders, must also be filed with the tax authorities in their home countries with the purpose of being granted tax deductions or reductions.
Also, companies in Dubai Biotechnology & Research Park must also register for VAT and file returns which demonstrate the collection and payment of this tax. The VAT returns in Dubai must be filed on a monthly or quarterly basis, depending on the annual income of the company.
We offer accounting services to foreign company owners who need to maintain their accounting books in Dubai.
Tax advantages in Dubai Biotechnology & Research Park
Those who set up companies in Dubai Biotechnology & Research Park will benefit from the following tax advantages:
- no corporate tax;
- free repatriation of profits;
- no taxes on the operations completed here;
- various customs exemptions on import and export activities.
For additional information about investment possibilities in DuBiotech, please contact our Dubai company formation agents.