People who are attracted to establishing their own big or small business often ask themselves, how to become an entrepreneur in Dubai? Is Dubai the right place to open my company? Shall I practice entrepreneurship in Dubai or look for other options? If you also fall under this category, don’t fret, we got you. All of this and much more will be covered in this guide.
There is not any other more suitable place than Dubai for people to become aspiring entrepreneurs. Its economic driving factors and strategically designed opportunities for big and small firms are some of the many pros of opening a company in Dubai. A tax-free environment, access to the world community, business-supportive laws, top-of-the-line infrastructure, and industry-specific small business resources with a solid network to build & uplift a company are some of the exciting perks that the UAE offers to entrepreneurs.
This step-by-step guide will tell you how to become a businessman in Dubai and turn their dreams of running successful businesses into reality. Stay tuned.
Benefits of Becoming an Entrepreneur in Dubai
Although we have already mentioned some of the many benefits of becoming an entrepreneur in Dubai, we have summarized other advantages to gain your complete attention.
We will kick things off with Dubai’s location. Its location in the center of the Middle East makes it ideal for trading with the African, Asian, and European markets that surround it. Its time zone overlaps with the most popular business hubs, and its direct transport links put a third of the world’s population within a four-hour flight time.
Its direct transportation links connect a third of the world’s population in less than four hours. Its time zone coincides with most major corporate centers of the world.
Let’s have a look at the UAE’s tax system. On both personal and business income, the UAE currently has a 0 percent tax rate. The Value Added Tax rate (VAT) is also very low and flat at 5 percent.
There isn’t much time left to take advantage of this fantastic tax rate as the UAE plans to implement a 9% corporation tax rate in 2023. However, even with a 9 percent tax rate, the tax environment of the Emirates would still remain one of the most appealing ones.
You can also get a 100 percent customs tax exemption, profit & capital repatriation, and zero currency limits upon forming your company in one of many free zones of Dubai.
Step By Step Guide to Become a Successful Entrepreneur in Dubai
This 8-step guide will teach you how to become a successful entrepreneur in Dubai, UAE:
Step 1: Plan and Organize Your business
Successful entrepreneurs are the ones who do meticulous preparation, perfect planning, and organization. Doing so helps them in turning their brilliant ideas into profitable businesses. Market research is the most important step you can take when planning your business. This will assist you in determining the specific niche you will target and what product, good, or service your firm will provide to its clients.
Choosing a legal business structure & model, location of the firm, personnel solutions, marketing & advertising tactics, and obtaining the necessary financial resources to establish your business are some of the other important elements to consider. As an entrepreneur in Dubai, the hard effort you will put in at this step will surely pay you off in the long run.
Step 2: Make a Solid Business Plan
The cornerstone of establishing a business in Dubai is a sound business plan. When you want to form your company in a highly competitive market, you need a solid and successful business plan that considers every single element in great detail.
Riz and Mona are experts in the process of starting a business. For you, we can create a viable business model that covers all the details and fulfills your market requirements too.
Step 3: Choose Your Business Activities
Now that you’ve outlined what your company plans to perform, it’s time to match your business activities (Which you will conduct) with one or above business operations approved by the Department of Economic Development (DED).
With more than 2,000 options to pick from, this should be comparatively an easy thing to do. However, keep in mind that you can only engage in business activities for which you have the proper trading license.
Step 4: Collect Funds for Business Startup
You must decide on the source of capital for your Dubai-based company. For this purpose, you could check into venture capital funds. Business loans are available from a number of corporate banks in the Emirates for new startups and businesses.
Step 5: Choose An Economic Zone
The United Arab Emirates established its creative economic zones in order to better manage and assist specific kinds of industries. In Dubai, there are two types of economic zones for a company in Dubai: Free Zone Companies and Mainland Companies.
In one of Dubai’s roughly 40 special trading zones, a Free Zone Company is formed. These free zones provide foreign entrepreneurs with advantages such as 0 percent tax, 100% ownership, and the ability to repatriate all profits.
You can trade within Dubai and with the rest of the Emirates through a Mainland Company. But you can only own 49% shares of the company. According to the legislation, all foreign-owned Mainland companies must give 51% ownership to a local resident of the UAE.
Step 6: Determine the License Type
Your business license depends upon the type of business activity. Generally, there are three types of business license,
- Professional license (license for professionals and service providers)
- Industrial license: (license for industrial or manufacturing activities)
- Commercial license: (license for trading activities)
Visit the Department of Economic Development (DED) to get a trading license for your business. Remember that you may need additional approvals from other government departments depending on the business activities you conduct.
Step 7: Apply for Visas
To work in the UAE, you along with your employees (if you have any) will require a residency visa. The visa application procedure can be relatively simple if you have the appropriate expert guidance.
You can also sponsor others for their visas if you have a UAE company license. A spouse, parent, or kid, as well as a domestic worker such as a housekeeper, could fall into this category.
Step 8: Open a Bank Account
A corporate bank account is required to accept and make payments freely in the UAE and elsewhere.
Non-GCC nationals may find it difficult to open their bank accounts. Working with Riz and Mona, on the other hand, can help you with that. We can recommend the banks and other institutes that flawlessly match your needs, and help with applications to ensure that everything is ready before submitting the application.
Must-Have Skills for Entrepreneurs
All the aspiring entrepreneurs should remember the following highly recommended skills:
Sales, Networking, and Relations
The goals, vision, and mission of your company are basic measures and principles that practically any company formation structure falls under. Without a doubt, they are immensely significant for the success of the company. But sales are what primarily extends the lifespan of any firm, regardless of size.
Big-time entrepreneurs and successful investors alike all believe in one single philosophy: Sales cures anything. Invest time in building relationship pipelines and networking in order to keep your newly established company alive and healthy. Stay focused, dedicated, and stick to the business plan.
Entrepreneurs have a tendency to stray from their business plan and copy an already existing business model, assuming that if it worked for some other company, it will do the same job for them as well.
That isn’t always the case, though. The most difficult aspects to consider are having patience and staying focused when things begin to go in the wrong direction, as is the market’s nature.
During the off-season, things tend to deteriorate. Staying on the right track with a solid, long-term business plan is the key to conquering it and staying afloat. The goal is to stay focused, stick to your decided budget, and broaden your horizons.
Work Hard & Smart
Putting in long hours and working hard is essential; owning a show does not imply clocking out at the end of your day. In reality, you should use your leisure time and time off the clock to networking in order to strike a deal. This includes weekends and nights as well. Working hard isn’t enough; there’s another factor of equal significance that’s equally important: being Smart and clever. Let me break it down for you.
Be Specific; Your goals must be precise and publicly expressed in a good light. Measure everything; Every accomplishment, objective, and everything in between should be measured. Goals can be Attained; Attractiveness is important to the company and your potential clients; always be reachable.
Be extremely realistic: Because you are not the only one of your sort offering your service, you must always be realistic and up to date, keeping an eye on the competition. Tasks should be time-bound; If tasks are not done on their time, how can we calculate our company’s profit? Timing of the tasks and keeping a track of their progress can prove to be the game-changer.
If you want to become a successful entrepreneur and are planning on starting your business in Dubai, you can reach out to us on Whatsapp at # 00971 54 582 1012 for expert advice and guidance. We will handle the process and complete the whole procedure of establishing your business in Dubai.