What Legal and Tax Considerations Are There When Moving a German App Company to Dubai?

Question from MS, What Legal and Tax Considerations Are There When Moving a German App Company to Dubai?

Answer from AI:

Moving a company internationally, such as from Germany to Dubai, involves several legal and tax considerations. It’s important to understand these aspects to ensure a smooth transition and continued operation of your app company.

Legal Considerations

When moving your company, you’ll need to consider the following legal aspects:

1. Company Structure: In Germany, your company is a GmbH (a limited liability company). Dubai has similar structures, but you’ll need to decide whether to establish a Limited Liability Company (LLC), a Free Zone Company, or another type of entity. Each has different requirements and benefits.
2. Business Licensing: You’ll need to obtain a business license in Dubai. The type of license depends on the nature of your business. For an app company, you might need a professional or commercial license.
3. Intellectual Property: Ensure that your intellectual property, such as your app, is protected in Dubai. This might involve registering trademarks or patents.
4. Data Protection: Dubai has its own data protection laws, which might differ from those in Germany. You’ll need to ensure your app complies with these laws, especially if you handle personal data of users.

Tax Considerations

Dubai has a different tax system than Germany. Some key points to consider include:

• Dubai does not levy corporate or income tax on companies or individuals, except for oil companies and branches of foreign banks.
• However, a Value Added Tax (VAT) of 5% applies to the supply of most goods and services. You’ll need to consider how this affects your app’s pricing and revenue.
• Germany and the United Arab Emirates (UAE) have a double taxation agreement. This means that if your company still has ties to Germany, you might be able to avoid being taxed twice on the same income.

User Considerations

The global nature of your app means you’ll need to consider how different jurisdictions affect your users. This includes data protection laws, consumer protection laws, and any local regulations that apply to your app.

Seeking Legal Advice

Given the complexity of these issues, it’s recommended to consult with legal professionals who specialize in international business law and tax law. They can provide personalized advice based on your company’s specific situation.

For more information, you can refer to the Dubai government’s guide on starting a business and the UAE’s information on double taxation agreements.