Online school in the UAE
Opening an online school in the UAE opens up excellent tax prospects for education entrepreneurs, the opportunity to gain international recognition and clients from all over the world without restrictions, which makes this country an optimal place for the development of educational startups and online platforms. Many information technology entrepreneurs, online school owners and bloggers with educational projects have already chosen Antwort Law to develop their business in the UAE and enjoy the following benefits:
- No income tax: Companies in the UAE are exempt from paying income tax if their turnover does not exceed 3 million dirhams (approx. €755,000). If turnover is above this amount, a tax of 9% of profits is applied, which is still significantly lower than in many other countries.
- No Dividend Tax: Dividends paid by companies in the UAE are tax-free, allowing profits to be used more efficiently and reinvested into business development.
- In addition to tax benefits, an online school registered in the UAE receives international recognition: licenses issued in the UAE are recognized internationally and add prestige to any business, including educational institutions.
Such conditions make the UAE one of the best jurisdictions in the world to launch and develop your online school. The process of opening an online school in the UAE can be divided into several key stages, each of which requires a careful approach and strict compliance with local legislation.
- Selecting a license: To start an online school, you need to select the appropriate license type. For example, a Training Consultancy license is suitable for those who plan to provide educational courses online and allows for distance learning and course sales. If your project also involves a physical presence in Dubai, for example, to conduct seminars or live training, you will need to obtain additional permits from the UAE Ministry of Education to guarantee all educational standards and requirements of the country.
- Company registration: usually takes from 7 to 14 days, but the period can increase to one month if additional permits or documentation difficulties are required. The process involves filing required documents with the appropriate government agencies and may require personal appearance or representation.
- Obtaining a resident visa and Emirates ID: to do business in the UAE, you must have a resident visa and an Emirates ID card, which, note to the owner, will need to be renewed regularly every 6 months.
- VAT Registration: Upon reaching a turnover of AED 375,000, your business will be required to register for VAT at a base rate of 5%. This includes maintaining appropriate accounting records and filing tax returns regularly.
To successfully launch and operate an online school in the UAE, it is important to strictly follow these procedures and requirements to avoid legal problems and optimize your tax burden. International law firm Antwort Law, with many years of experience in the UAE jurisdiction, offers a full range of online school registration services, helping you take full advantage of the local market. We will not only help you determine the most favorable tax rate, but also develop a comprehensive business structure, provide support at all stages of company registration and obtaining the necessary licenses and visas.
Lidia Ivanova
International lawyer
Antwort Law