When we look at how far Dubai has come in such a short span of time, it is easy to see why starting a business in Dubai is such an attractive prospect to many entrepreneurs. In fact, Dubai’s Department of Economic Development (DED) reports a 13% year-on-year increase in new startups looking to do business in Dubai. Dubai’s growing economy presents many opportunities. The services, finance, trade, and real estate & properties are paying back profits. Furthermore, the city is one of the most cosmopolitan cities in the Middle East.
3 Reasons why a foreigner should start a business in the UAE
There are certain advantages in investing in Dubai:
- Companies incorporated in Dubai are not subject to corporate tax, withholding tax, VAT, import/export tax, and capital gains tax.
- UAE has signed more than 66 international double tax avoidance treaties with major countries like China, the USA, and most members of the EU.
- Foreigners can have easy access to local currency, as there are no exchange controls in place.
Furthermore, foreigners who wish to start a business in Dubai, reallocate to Dubai and enjoy a multicultural environment. Dubai’s population has foreigners from all over the world. So, the city is always up with the latest trends and development. It is also a paradise for any foodie eager to try different cuisines. Dubai is also a paradise for shopping since the city does not impose VAT. Residents are exempt from paying personal income tax
Business Setup in Dubai
The first step in doing business in Dubai is to decide the company type suitable for the business.
Forming a company in Dubai’s free zones is most recommended. A Dubai free zone company allows foreign investors to have 100% ownership of the company.
A Dubai Limited Liability Company (Dubai LLC), limits foreigners to owning up to 49% of the company. A UAE national will own the remaining 51% of shares. Only in exceptional cases, The Government authorities permit a 100% foreign-owned LLC.
Registering A Company In Dubai
To register a company in one of Dubai’s free zones requires the following things to be submitted to the Dubai Government authorities:
- A detailed business plan.
This business plan should encompass the following things:
- Description of the proposed business activity
- Quantity and composition of the employees
- Amount of investment;
- Suppliers information and
- What do customers expect?
2. lease agreement and A receipt of the deposit of the share capital.
5 Reasons To Setup Business In Dubai
Here are the top 5 reasons for Business Setup in Dubai.
1. The Burgeoning Economy
The first and foremost reason to set up business in Dubai is the rapid growth in the economy. According to the 2014 Metro global Report, Dubai is the world’s fifth fastest-growing city. Dubai has come a long way in establishing itself as the successful, and, industrious business center as what it is today. Companies from all over the world are shifting base to UAE and opening offshore companies here.
Today the UAE is home to many start-ups and multi-million dollar conglomerates.
2. Availability of Skilled Workforce
One of the biggest struggles when starting up a business in Dubai is finding the right people to work with. Dubai's liberal and cost-effective labor laws, along with its desirable working location, make it both easy and affordable to recruit employees from almost anywhere in the world. The ease at which expatriate workers who make up a staggering 90% of the city’s labor force can enter and exit the UAE also makes it easier for businesses to scale their resources up and down as needed.
3. Location, Infrastructure, and Reputation
With no stone left unturned to welcome foreign investors, the UAE government offers the world-class infrastructure which you can leverage for your own business in Dubai. Be it transportation, healthcare facilities, education, business parks, corporate spaces, and others, there is seldom anything you’ll miss out on for your business in Dubai. Dubai’s location, infrastructure, and business reputation – the jewel in the crown of the Emirates – makes it not only an ideal place to start a business in Dubai but also an incredibly easy place to attract business too.
4. Friendly Laws
The government of the UAE offers plenty of opportunities for foreign investors for doing business in Dubai. Different legislation is put in place in the market to enable a comfortable environment for business across all industries and budgets.
Since foreign investments heavily drive Dubai’s economy, the government keeps amending the laws, making them more favorable for foreign investors. In addition, the documentation and legal procedures are fast-tracked to ensure seamless licensing, registration, and other processes.
5. Tax Exemption
One of the major hassles of opening a business in a foreign territory is developing an understanding of their tax laws and maneuvering your business so that you have minimum taxes to manage. The Emirates offers various kinds of business ownership patterns and tax categories. One among them stands out to be the Free Zones with the feature of 100% tax exemptions. There is 0% corporate and income tax, 30 % tax rebate on international film and TV production spending. This means that the owner does not have to pay any taxes to the government.
Take Help From Us for Business Setup in Dubai
So, are you excited to start up your business in Dubai? If yes, then prepare up your business idea and get in touch with an international business consultant in Dubai, Danburite Corporate who has guided thousands of business owners for a successful business setup in Dubai. With their team’s international business acumen and local Middle Eastern exposure, you can rest assured that your business setup is taken care of.
Have more questions on how to go about it? Contact us today!
