Canadian entrepreneurs find Dubai to be the best place to do business or run a company. It has everything that an entrepreneur or investor dreams of; a supportive environment, business-friendly regulations, zero-tax policy, and more. Though there are multiple things that you as a Canadian must know before you establish your business, it is very easy and anyone can do that upon following the process in the right way. Let’s find out how Canadian entrepreneurs and businessmen can start their businesses in Dubai, UAE.
Why Move to Dubai from Canada?
As already discussed, Dubai offers a lot to Canadians which makes it a desirable location for business purposes. Dubai is a great location for businesspeople and investors alike due to its thriving economy and world-class infrastructure.
Many factors have led many Canadians to choose to conduct business activities in Dubai such as:
1. The Burgeoning Economy
In the Gulf, the UAE has the most open trading regime. It has been an open economy with a large yearly trade surplus and a high per capita income for the past 40 years. Businesses are relocating their headquarters to the UAE and setting up offshore companies in the country. Many multimillion-dollar companies and start-ups are now based in the UAE.
2. Easy Business Setup
For business owners and entrepreneurs, Dubai is the ideal location for various reasons including easy business setup. The city has established a business-friendly atmosphere that makes it effortless for Canadian investors to launch their own businesses without bureaucratic delays or hassle.
To assist in the expansion of companies in the UAE, the local government offers different incentives such as tax exemptions, free trade zones, reduced import taxes, and others. Due to Dubai’s fantastic infrastructure, it is simple to reach international markets from any location within the country.
3. Networking Opportunities
One of the biggest and most diverse business communities in the world is found in Dubai. The emirate catches the attention of visitors from all over the world. This makes the city a fantastic place to network and establishes connections with potential customers and business partners.
In Dubai, there are numerous opportunities for Canadian ex-pats to grow their professional networks throughout the year which are available in the form of seminars, networking events, and, conferences. This is extremely helpful for Canadians searching for clients for their businesses.
4. Manpower Availability
It is an open secret that workers from all over the globe, particularly from India and other south-eastern countries, come to the UAE in search of employment. As a result, you, the company owner in the UAE, don’t have to worry about finding employees to run your operations. It is a very favorable environment for both employers and employees because wages are high and taxes are cheap.
5. Business-Friendly Jurisdictions
The city’s free zones present a fantastic opportunity for Canadians wishing to launch businesses in Dubai. Free zones are unique economic zones intended to bring in international capital and companies.
Around 40 free zones exist in the United Arab Emirates. Dubai has the maximum number of free zones. these free zones provide a number of advantages including complete profit repatriation and 100% ownership. Moreover, they offer cost-effective access to resources like office furniture or warehouse space.
6. Tax-free Environment
The UAE does not impose income taxes on Canadian individuals, unlike many other countries. Canadian businessmen immensely benefit from this tax-free approach since it enables them to keep the maximum amount of their hard-earned money in the bank rather than having to pay taxes on it.
In addition, Dubai has a Value Added Tax (VAT) on services and products that are only 5%, which is quite cheap when compared to other countries. Hence, you can enjoy the benefits of your money without worrying about paying a lot of taxes.
7. Incredible Quality of Life
You should look forward to a big improvement in your quality of life if you relocate from Canada to Dubai for business. The UAE is a great place for those who want to travel and have fun in their leisure time because it has some of the best beaches and luxurious shopping centers in the world.
The city also offers a top-rated healthcare system that guarantees the residents receive top-notch medical care at a fair price. Additionally, the UAE government has made significant investments in education over the past few years. So if you decide to come with your family, you can expect excellent educational facilities. The cost of living in Dubai is almost similar to that in Canada, therefore your budget won’t undergo any significant adjustments.
8. Diverse Culture
Dubai is a cultural melting pot where people from many countries carry out their jobs and live together peacefully. What makes life in Dubai great is being able to explore various customs and cultures while also meeting new people and making new connections.
The city also often holds fun events such as art exhibitions, music performances, cuisine festivals, and more that appeal to everyone from different backgrounds. Dubai has something for everyone, whether you’re looking for cultural experiences or only are looking to spend a good time.
9. Sunny Climate
Harsh winters are something that Canadian citizens already are aware of. But Dubai is the place to be if you’re looking for sunshine and warmth in the city. With an average yearly temperature of 29°C (84°F), Dubai is a great choice for Canadians wishing to get away from the snow because of the country’s mild winters.
10. Luxurious Lifestyle
Dubai is well-known for its luxurious way of living and extravagant lifestyle. The city provides a variety of services and activities that make it a desirable location to live. Dubai features many world-class landmarks, ranging from the Burj Khalifa Tower, which is well-known worldwide, to futuristic water parks. Additionally, Dubai is home to some of the top-rated shopping centers, restaurants, and entertainment centers in the region.
How to Start a Business in Dubai, UAE as a Canadian Entrepreneur
Follow these steps and you can open your own company in Dubai, UAE right now.
Step 1. Applying for Visa
To avoid any difficulties with the application procedure, you should apply for a Dubai visa before starting your business. You are unable to access the city without a visa. You must attend the immigration office and submit the required documentation, which includes:
- Business plan
- Visa application
- Security amount
- Passport or copy of passport
- Details of your ticket
- Purpose of your visit
- Your personal bank statement
- Your latest colored photographs
Step 2. Choosing Business Activity
Choosing a specific business type solely depends on your personal preference or on your existing company or established business. The type of business license depends on your chosen business activity.
Step 3. Selecting Business Name
After that, you will decide on a distinctive business name. When choosing a trading name, keep in mind that there are some limitations you need to take into account. If you want your name to appear in the business name, you can use your initials or last name. Anyway, the following are the limitations:
- The business name should not contain any name or logo of external bodies nor the name of a religion, or governing authority
- The business name must not violate the public order of the country or the public morals
- The business name must not have been already registered
- The business name must be compatible with the needed type of legal status and activity
- The business name must be followed by the business structure or legal form of the company
Step 4. Finding a Local Sponsor
Everyone is not required to find a local sponsor. Only those who choose to open a company on Dubai’s mainland are required to look for a local sponsor. A significant portion of your company will be owned by your neighborhood partner.
Step 5. Acquiring Initial Approval
Next up, you will get initial approval from the DED. In order to acquire initial approval, you will submit supporting documents and your application.
Step 6. Drafting Memorandum of Association
The MoA (Memorandum of Association) must be written as the next stage. The Memorandum of Agreement (MoA) is a legal document that serves as the company’s charter and regulates your company’s external operations. The Dubai court notarizes it.
Step 7. Submitting Fees
Upon the submission of your application and any necessary documents, you will receive a payment voucher. You must submit the license fees and make the payment within 30 days of receiving the payment voucher. Your license will be sent to you once the fees have been received.
Step 8. Registering your business
You will visit the Dubai Chamber of Commerce and Industry to register your business.
Step 9. Renting Office Space
You might require to rent an office space to launch your business and physically perform your business activities.
The Best Visa for Canadian Entrepreneurs
Before you come to Dubai for business, you need to get a valid visa. Dubai has introduced different visa options for Canadian entrepreneurs and businesspeople that enable them to move and stay in the city. These visas include a student, employment residency, or business visa. UAE Business Visas can have validation for 60 or 90 days or can be as short as 14 days. Make sure that you consider the Dubai Business Visa validity before you apply for the following types of visa.
Tourist or Visit Visa
A tourist or visit visa is the best option for short-term stays. You can stay for a maximum of 90 days in Dubai with this visa. It can be done online with no effort and is comparatively simple to issue.
One-Month Visa
A one-month visa is given to those applicants who currently reside in the UAE. The temporary visa must be converted into a residency permit before its expiration date.
Six-Month Visa
Applicants who are residing outside the UAE are issued a temporary business visa called a Six-month visa. It is valid for up to six months. You will need to convert it into a residency permit before it expires. The multiple-entry visa will give them time to enter the UAE to search for opportunities for expanding the company and settling in.
Investor or employment visa
An investor or employment visa is the ideal choice for those who are planning on staying for more than 3 months. The investor visa requires that you have a defined amount of capital invested in Dubai. Generally, the individual also makes a significant financial investment in real estate or a business in Dubai. Whereas an employer sponsor is needed for the employment visa. you to live and work in the emirate having these visas for no more than 3 years. You have to renew the visa again before it expires.
The Golden Visa Program
The Golden Visa Program is a unique residency program in Dubai. It is suitable for Canadian businessmen, investors, and entrepreneurs to work and live in Dubai. The eligibility for the Dubai Golden visa requires that you run a business in the UAE with a minimum capital of AED 2 million or own an investment fund having at least AED 2 million. It enables students, entrepreneurs, professionals, and investors across the world to relocate and live in Dubai with a lot of advantages such as:
- If the primary holder of the Golden visa dies, the permit is given to family members to stay in the UAE until their permit duration is completed.
- An entry visa for up to 6 months with several entries
- There is no requirement for a sponsor
- A renewable, long-term residence visa valid for up to 5 or 10 years
- You can sponsor your children, spouses, and other family members
- You can stay outside the UAE for over the general timespan of six months
- You are allowed to sponsor any number of domestic workers and helpers
Eligibility Requirements for a Dubai Business Visa
The Dubai Business Visa or Dubai Startup Visa is suitable for entrepreneurs who already have well-established businesses in the UAE and are looking to set up a new business. The following are the eligibility requirements for this visa:
- Have already been a major shareholder or a part of the leadership team in a startup.
- Have the plan to move to the Emirates for launching a company.
- Have a business plan or at least an idea that you want to expand in the country.
- Be able to prove that you are an experienced entrepreneur.
Remember that upon successful submission of a visa application does not mean that you will get a visa. A review committee will inspect your application. After the review process, you might get a visa. You also need to follow the guidelines given by the ICA (Federal Authority for Identity and Citizenship) for the visa to be obtained.
How to Apply for a Dubai Business Visa Online?
Your application for a Dubai Business Visa requires an initial nomination. For that, a UAE Government-approved incubator must approve your application.
Once your application gets the nomination, you will be moved on to the ICA to apply for a business visa for the UAE. The steps involved in submitting a nomination are described below:
- You need to make your user account on the UAE Golden Visa’s official website.
- Once the account is verified, you need to log into your account and apply for the nomination online.
- Then, fill out your application and submit it online.
The whole process will take around 30 days to process. If you are one of the successful nominees, you will get a link through email. Through that link, you will need to upload the required documents for the visa. If you are not one of the successful nominees, you need to apply again after a time span of 90 days.
Required Documents for a UAE Business Visa Application
- A photocopy of your passport, which must still be valid six months after the date you plan to travel.
- An invitation letter from your UAE sponsor.
- Two most recent white-background passport photos.
- An employment letter from your company outlining your salary and job duties.
- A completed application for a business visa.
- A copy of your residence permit if you already reside in the UAE.
Documents Required to Set Up a Business in Dubai as Non-Residents
The following documents are required to submit along with your application for setting up a company in Dubai, UAE:
- Filled out the application form
- NOC from your local sponsor (for entrepreneurs)
- Copy of existing trade registration certificate or license (if you have an existing business, applicable only for local companies)
- Colored passport copies of the director, manager, and shareholders of the company
- Certificate of reference from a bank of the company’s shareholder or audited financial reports of two years for the corporate entity
- Sign of the appointed director or manager for the new company and the company’s shareholders
- Your business plan
- Articles of incorporation (if necessary)
Types of Business Licenses in Dubai, UAE for Canadian Entrepreneurs
The mainland license and the free zone license are the two common types of business licenses available to Canadian entrepreneurs looking to expand their enterprises in Dubai. Let’s talk about their differences briefly.
Mainland License
Above any other location, the mainland of Dubai is preferred by Canadian investors for company formation. This is true since the mainland allows business owners to do business anywhere. For a local Dubai mainland license, no capital is needed. To make your firm operational, you might need to work with a local sponsor as a foreigner.
Free Zone License
A free zone license is the best option for new Canadian business owners and entrepreneurs. Generally speaking, obtaining this license is the most affordable and simple option for a Canadian to start a business in the United Arab Emirates. Operating business operations in different free zones offers you 0% corporate tax, no currency restrictions, and a 100% exemption from customs taxes.
FAQs – Frequently Asked Questions
Can a Canadian start a business in Dubai?
Yes, many Canadians do set up their businesses in Dubai. Around 80% of the residents are foreigners, and many of them own their own companies. Dubai openly welcomes foreign investors, businesspeople, and entrepreneurs.
How much money do you require minimum to start a business in Dubai?
The minimum amount depends on various factors such as your business requirements, location, goals, etc. Consult a business setup expert to get a better idea of the required capital.
Is Dubai a good place for entrepreneurs?
Yes, Dubai is an excellent place for entrepreneurs. It has everything that an entrepreneur searches for to do business.
How difficult is it to start a business in Dubai as a foreigner?
It is not difficult to start a business in Dubai as a foreigner if you follow the defined process carefully and in the right way.
RIZ & MONA: Your Partner for Business Setup in Dubai and UAE as a Canadian
So, this is how you can start your new Canadian business in Dubai. UAE openly welcomes Canadians to come here and launch a company in the country. You would surely love the city as a Canadian entrepreneur due to its numerous benefits, rewarding facilities, business-supportive features, and much more. You will find it highly rewarding and exciting to conduct business operations here in the UAE.
All you have to do is submit a visa application and collect the required company documents.
You’ll be able to begin your new life in Dubai after that is completed. However keep in mind to look into Dubai’s processes, rules, and regulations to make sure your business setup is successful.
If you need more advice on how to establish your company in Dubai as a Canadian entrepreneur RIZ & MONA CONSULTANCY is happy to help you out. You can rely on our team to make sure your business setup process goes successfully. We are aware of and experienced with the business setup procedures in the UAE. So, you don’t have to worry about anything and leave everything to us. Contact us now and book your free slot.
