The momentum of the flourishing tourism industry in Dubai is a magnet for entrepreneurs. Suppose you are an owner wishing to rent out a holiday property or looking to start a tour operating agency. In that case, this guide will take you through everything you need to know when establishing a holiday business in Dubai.
Benefits of Starting a Holiday Company in Dubai
Profitable For The Tourism Sector
Dubai can log millions of visitors every year, thus providing unlimited opportunities to those who offer holiday services and attractions for tourists.
Monetize Your Own Property
If you have a property in Dubai, list it as a fully furnished holiday home. You could earn more with it than you would with standard yearly rentals. Short-term rentals are in big demand, even by Dubai’s already-sky-high standards.
Cost Effective Office
Startups will find it practical to operate without the burden of high rental charges on office space. The startup can operate very flexibly and yet present itself as a considerably professional organization.
Strategic Global Location
Dubai stands on a junction between the East and the West and is at the epicenter of international business tourism.
Tax Benefits
Welcome to the world of absolutely no personal income tax and potentially corporate taxation-friendly environment advantages that greatly enhance your profits.
Why Holiday Homes Are a Great Opportunity
First, if one is a property owner in Dubai, turning a dwelling into a holiday home may prove revamping.
These will be the reasons why:
- Higher Returns: short-term rentals deliver a higher income than annual leasing.
- Flexibility: You can use your property as a holiday home anytime it is vacant for renting out.
- Low Overheads: These have lesser costs than other business models.
Steps to Monetize Your Property as a Holiday Home
- Register with DTCM: Obtain a permit from the Department of Tourism and Commerce Marketing (DTCM).
- List on Booking Platforms: Platforms such as Airbnb, Booking.com, and VRBO draw tourists.
- Enjoy Professional Property Management: Hire a management company to handle cleaning, guest check-ins, and maintenance for a trouble-free experience.
License Costs for a Holiday Company in Dubai
Getting started on the journey of starting a holiday company involves paying certain licensing fees, and a summary is as follows:
- DED Initial Registration Fee: AED 1,350.
- License Fee: AED 15,000 plus 5% of annual office rent.
- Approval From DTCM: AED 4,500 for permits related to tourism activities.
Virtual Office for Budget Setup
A virtual office is a low-cost option, especially for startups. Benefits include;
- Lower Overheads: Avoid high-gross rental costs because of small or big physical office spaces.
- Professional Address: Utilization of a prestigious address for correspondence and licensing purposes.
Corporate Tax and VAT for Companies Involved with Holidays
Corporate Tax
Yearly incomes from businesses crossing AED 375,000 will be 9% subject to corporate tax.
VAT Threshold
- From AED 375,000 annual sales, VAT registration is compulsory.
- 5% VAT on services has to be charged and returns filed on a periodical basis.
Steps to Set Up a Holiday Company in Dubai
DED License: Register your business with the Department of Economic Development.
DTCM Registration: Tourism-related operations should seek licenses and approval from the Department of Tourism and Commerce Marketing.
Office Setup: Choose to set up either a virtual office to save costs or a physical office to facilitate improved operations.
Corporate Tax and VAT Registration: Registered under the corporate tax and VAT regime, ensure compliance with all regulations of the U.A.E. to avoid penalties.
Business Bank Account: Open a corporate bank account through which you will continue all your company’s transactions.
How to Maximize Income with the Right Property Location
The location principally determines the income potential of your property, and here is how you can adeptly do that:
- Look for top tourist spots: Locations near landmarks like the Burj Khalifa, Palm Jumeirah, or Dubai Marina. Price premium rates.
- Public transport: Properties near metro stations, bus stops, and transport hubs will attract more attention.
- Demand-driven areas: Downtown Dubai, Jumeirah Beach Residence (JBR), and City Walk, attract many tourists and business travelers.
- Unique experience: These properties are in private beach access, allowing rooftop terraces or desert scenery to appeal to niche travelers.
- Accessible Amenities: Malls, restaurants, or nearby family attractions are an added plus.
- Maximize long and short-stay capabilities: Thereby appeals to both leisure and business sets, hence full-flux revenue.
- Application of Property: The higher the interior class, the more modern amenities, and extra concierge services or guided tours can add value.
How RAS Corporate Advisors Can Help
The different systems, rules, and contexts that must be considered when starting a holiday company in Dubai can seem baffling. At RAS Corporate Advisors, we help you at every stage.
- DED licensing and DTCM approvals.
- Corporate tax registration and VAT compliance.
- Virtual office setups and bank account facilitation.
Let’s Get Started!
Transform your vision into reality with our highly experienced advice and tailored solutions. Call RAS Corporate Advisors to get started today!