It’s no surprise that Dubai provides significant advantages to entrepreneurs, the most significant of which is 0% income tax and a prominent, prime location. If you wish to have a business setup in Dubai, keep reading. In this guide, we take you through an entire company formation journey.
Without a doubt, there are compelling reasons why thousands of entrepreneurs from all over the world flock to Dubai to establish a business. Let’s look at a few advantages of business setup in Dubai.
Benefits of 100% ownership in Dubai:
- Flexibility in Decision-Making
When foreign investors possess 100% of a company, they have the ability to make decisions that are best for their business interests. Otherwise, they would have to consider the interests of shareholders (both domestic and foreign) before taking any significant steps.
Foreign investors will no longer be bothered by questions of cooperation and congruence. Furthermore, the UAE’s economy would benefit from the same.
- Business diversification
The mainland firms can manage a broader range of activities. If you want to diversify your mainland services, all you have to do is re-register your new operation with the Department of Economic Development (DED), and you can trade freely.
As a result, the availability of 100% ownership for foreign investors in the UAE will encourage investors to explore the local market in Dubai and diversify their venture model accordingly.
- Time and Money-effective
The UAE government now allows several businesses to conduct their operations without the need for local sponsorship. As a result, you can begin operations as soon as your company is registered, with minimal formality and paperwork.
The 100% foreign ownership structure helps a business to save funds that would otherwise be spent on extraneous formalities. The company can put this money and time into its business.
- Low Taxation
The UAE proudly declares that all personal and corporate income is tax-free. The only significant tax to be aware of in the Emirates is VAT, which was implemented in January 2018 and is set at a flat 5%.
- A Thriving Economy
The UAE has the Arab world’s second-largest economy. With a GDP of roughly AED 692 billion, it ranks second only to Saudi Arabia. It is as different as it is vast. You can start a business in a variety of fields, including healthcare and hospitality, as well as technology and trade.
- Excellent Quality of Life
The UAE ranked 23rd in the Best Countries Index, trailing only Spain and Ireland but ahead of Portugal and Greece.
- Startup Assistance
There are numerous startup incubators in the UAE and sponsoring efforts to accelerate corporate growth. Dubai’s corporate future also appears to be promising. According to the International Monetary Fund (IMF), the UAE is predicted to dominate the Arabian Gulf economic growth this year, expanding by 2.5%. This is much higher than the 0.4% growth expected for the region’s largest economy, Saudi Arabia.
If this has piqued your interest in learning how to start a business in Dubai, you are not alone. The good news is that forming a corporation in Dubai does not have to be difficult if you follow the steps outlined in this guide.
Steps To Follow:
- Pick the industry (business activity)
- Pick a location/jurisdiction (Mainland, Freezone, Offshore)
- Wisely choose a corporate business name
- Get the necessary paperwork:
- Memorandum of Association
- Non-objection Certificate
- Passport and visa copies of directors, owners, and shareholders
- Business plan
- Articles of Association
- Apply for the appropriate business license
Note: this could be more than one or a merger of business activities
- Open a corporate bank account in your preferred bank
- Apply for the UAE visa
Note that the UAE offers a large variety of visas, especially for entrepreneurs and foreign investors, such as the Golden Visa, Investor Visa, etc.
Business setup in Dubai is a simple and straightforward process. However, to avoid penalties or government-related queries, hiring professional business setup consultants in Dubai is advisable, as they are experts in the industry and can guide you from square one. Most business consultants in Dubai also provide professional PRO services in Dubai, thus simplifying your work even further.
Dubai is an intriguing challenge for business-minded dreamers, with a growing company landscape aided by government incentives and ease of setting up new firms. Dubai’s hospitality and modern, forward-thinking initiatives reward those who are ambitious.
Whatever stage you are at in your business setup in Dubai journey, keeping these guidelines in mind can help smooth the transition – while seeking competent assistance along the process is essential.