Incorporating business outside India

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siddheshwar (Querist)
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26 August 2021 We are planning to start new business in digital marketing industry.
We want to incorporate our business in any of the following countries Dubai, U.S, Canada or Muscat.
Can anyone please help us to know which country is better for incorporation process & with their byelaws & how much it will cost for the same.
Can Indian CA incorporate the same or we need to contact chartered from respective countries?

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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09 July 2024 Deciding where to incorporate your digital marketing business involves considering several factors such as ease of incorporation, legal requirements, tax implications, and costs. Here's an overview based on the countries you mentioned: Dubai (UAE), U.S., Canada, and Muscat (Oman):

### Dubai (UAE):
- **Ease of Incorporation**: Dubai offers a streamlined process for setting up businesses, especially in free zones like Dubai Internet City (DIC) or Dubai Media City (DMC), which are ideal for digital marketing firms.
- **Legal Framework**: Companies in Dubai operate under UAE Federal Law and regulations specific to each free zone.
- **Cost**: Costs can vary based on the free zone and specific requirements. Generally, setup costs in Dubai can range from AED 15,000 to AED 50,000 or more, depending on the business setup package chosen.
- **Incorporation by Indian CA**: Generally, incorporation in Dubai requires interaction with local authorities and legal advisors familiar with UAE laws. Indian CAs can provide advisory services but typically, local partnerships or legal firms are also needed for specific legal aspects.

### United States (U.S.):
- **Ease of Incorporation**: Each state in the U.S. has its own incorporation laws, but Delaware is popular due to its business-friendly laws and established legal framework for corporations.
- **Legal Framework**: Corporations in the U.S. are governed by state laws, particularly in the state of incorporation (e.g., Delaware General Corporation Law).
- **Cost**: Incorporation costs in the U.S., particularly in Delaware, can range from $500 to $1,500 or more, depending on legal fees, registered agent fees, and other factors.
- **Incorporation by Indian CA**: Incorporation in the U.S. typically requires involvement of local legal counsel due to state-specific laws and regulations.

### Canada:
- **Ease of Incorporation**: Canada offers a straightforward incorporation process with federal or provincial options. Toronto and Vancouver are popular locations for tech businesses.
- **Legal Framework**: Governed by federal and provincial laws (e.g., Canada Business Corporations Act for federal incorporation).
- **Cost**: Incorporation costs in Canada can vary by province and type of corporation, ranging from CAD 200 to CAD 1,000 or more.
- **Incorporation by Indian CA**: For Canadian incorporation, local legal advice is recommended due to regulatory and compliance requirements.

### Muscat (Oman):
- **Ease of Incorporation**: Oman provides options for business setup, including free zones like Muscat Free Zone or regular mainland incorporation.
- **Legal Framework**: Governed by Oman Commercial Companies Law and regulations specific to the business setup location (free zone or mainland).
- **Cost**: Costs can vary significantly depending on the location and type of business setup, typically ranging from OMR 1,000 to OMR 5,000 or more.
- **Incorporation by Indian CA**: Similar to Dubai and other jurisdictions, local legal expertise is advisable for compliance with Oman laws and procedures.

### Conclusion:
- **Local Legal Advice**: While Indian CAs can provide advisory services, incorporating in these countries often requires local legal expertise due to specific legal and regulatory requirements.
- **Cost Considerations**: Incorporation costs vary widely and depend on the type of entity, location, legal fees, and ongoing compliance requirements.
- **Choice of Jurisdiction**: Consider factors such as taxation, legal framework, ease of doing business, and market access when choosing a jurisdiction for incorporation.

For accurate and detailed guidance tailored to your specific business needs, it's recommended to consult with both an Indian CA familiar with international business operations and local legal experts in your chosen jurisdiction. They can provide insights into the incorporation process, compliance requirements, and ongoing business considerations.