Businessmen and investors know that currently there is no more ideal place than Dubai for doing business or expanding in the Middle East region. The benefits the city offers to firms and enterprises are simply out of this world. That is why people from all across the globe are shifting their businesses from their native countries to the UAE. The same goes for Sweden businesses. Swedish people are also planning on relocating their companies from Sweden to Dubai. If you wish to do the same but don’t know the process, this guide will help you out. Read on to find out the complete process to move your SE Business to Dubai, UAE.
Problems of Doing Business in Sweden
Sweden is a wonderful place to live but doing business or running an enterprise there might not be the most lucrative thing for businessmen, investors, and entrepreneurs to do. Starting a business in Sweden may look to be good but there are a number of disadvantages to conducting operations there.
Some of the primary problems of establishing a business in the country are as follows:
Limited Market Size
Sweden has a population of little over 10 million, making it a comparatively small market. Businesses may find it difficult to expand beyond the local market as a result of this low population. Businesses aiming for global expansion of their companies might need to look elsewhere to make their customer base bigger.
High Individual Tax Rates
Sweden has extensive social service programs that are funded by high individual taxes. These programs include national health programs and other benefits like substantial parental leave. This can make it challenging to find skillful employees outside of Sweden.
It can be difficult to follow Sweden’s bureaucratic procedures and requirements when starting and running a business in the country. For businesses, especially smaller ones, this can be time-consuming and very expensive. Plus, firms that want to move quickly may find the government’s decision-making process annoying because it can be cumbersome.
Complex Labor Laws
Sweden has strict labor laws that offer employees considerable protections, including collective bargaining agreements of individual labor unions.
Although there are no laws requiring a minimum wage in Sweden, trade unions may have their own agreements that define the benchmark for particular industries and jobs. When terminating an employee, employers are required to adhere to a set of formal guidelines. It can be challenging to follow these standards and is not possible to do so without the use of local knowledge in these areas.
The business environment in Sweden is extremely competitive, with both existing businesses and new businesses competing against one another for customers. This can make it challenging for new companies to enter the industry and establish a ground for themselves. To compete successfully in this environment, businesses need to be inventive and smart.
High Cost of living
Living expenses are high in Sweden, particularly in cities with vibrant startup scenes like Stockholm and Gothenburg. According to estimates by different authorities, living expenses are two percent less than they are in the US. But, due to the high individual tax rate in the country, the cost of living appears to be much higher.
In contrast to other European cities, Stockholm has high rent and a dearth of housing, making it difficult to grab the attention of younger, skillful talent. The amount of talent in the country may be impacted by the high tuition costs for students from outside the EU.
Despite the fact that many Swedes can speak English, Swedish is Sweden’s official language. Aas not all team members or potential clients can speak English well, this could be a huge barrier when doing business. Communication and business interactions can become more challenging because of this barrier.
The next challenge is the worse weather conditions. Depending on the region, the long Swedish winters can be exceptionally harsh. The southern region experiences pleasant temperatures on average, but total temperatures can range from 23 to 35 degrees Fahrenheit and even go as low as 5 degrees.
Some people can find it more difficult to adjust to the darkness in the cities. Stockholm barely gets about six hours of daylight in the month of December.
High Cost of Labor
Sweden has a workforce that is highly educated and talented. But the cost of labor can be costly. This can make it difficult for companies to keep labor expenditures in check, which can have an effect on their profitability.
Limited Working Hours
As discussed earlier, the average workday in Sweden is about six hours, with many employees working fewer hours. Businesses that need more workers may find it challenging to hire workers who are prepared to put in more time on the clock.
Sweden has a population that is largely homogeneous. The people have little ethnic and cultural variety. Businesses that want to attract a diverse consumer base or hire team members from various backgrounds can face difficulties due to limited diversity in the country.
Lack of Networking Opportunities
Sweden has an ok business sector, but there aren’t always many possibilities for networking. This can make it difficult for new firms, especially those outside of the major business hubs, to interact with potential partners or clients to earn good profits or scale up their businesses.
Social Pressure for Sustainability
Social responsibility and sustainability are highly valued in Sweden. While this is a benefit to the country, it can be difficult for companies that lack the funds to adopt sustainable practices or achieve the rigorous environmental criteria set by the state. Thus it makes it very challenging for businesses to make their place and survive in the market for the long term.
Benefits of Moving SE Business to Dubai, UAE
In various areas of the economy, including trade, import, export, logistics, tourism, hospitality, event management, financial services, construction, and so forth, the UAE has evolved into a major global trading hub and the best place to invest in the world.
There are various reasons why many businesspeople favor or want to conduct their business operations in the UAE. The top 10 reasons to choose Dubai for business are as follows:
1. No Taxation
World’s most open and diverse economies are generally known to be those of the United Arab Emirates. With the exception of big oil and gas firms, hotels, and international bank branches, practically all business activity in Dubai are tax-free. In Dubai, the following taxes do not apply to businesses:
- Corporate tax
- Personal income tax
- Value-added tax
- Capital gains tax
- Withholding tax
2. Safe Place to Live and Do Business
A safe environment is necessary for corporate growth. Due to its reputation as one of the safest cities in the world, Dubai has a reputation for safety and well-being. Dubai has one of the lowest crime rates in the entire world. Serious crimes including physical assault, murder, kidnap, and rape represent 0.5 to 1 for every 100,000 population, in comparison to the world average of 6 to 8 for every 100,000 population. In addition to that, the UAE is regarded as one of the Middle East’s most politically stable countries in the world. A number of important elements, including political and security stability, have attracted numerous foreign investments and businesses to the United Arab Emirates.
3. Full Repatriation of Profits and Capital
The repatriation of capital and profits is unrestricted in Dubai. Although because of the UAE’s tax-free stance, many corporations opt to keep their money there. Furthermore, the exchange rate between the US Dollar and the UAE Dirham is stable. Furthermore, there is no foreign exchange restriction.
4. Residency Visa
You can apply for a UAE Residency visa for yourself, your family, and your foreign employees if you establish a business in Dubai or another emirate of the UAE. As a resident of the UAE, you can open a current account in the UAE Bank, lease an apartment for an extended period of time, enter and exit the country several times, and quickly obtain visas for other countries, including those in the Schengen countries.
The infrastructure of Dubai is world-class. If you are opening a company in Dubai, you won’t have to worry about looking for an office, a manufacturing unit, a warehouse, or a factory because everything is set up and ready to use. Throughout the past few decades, new, high-quality residential, touristic, industrial, and commercial facilities have been constructed at a fast speed and in great quantity across the city.
In addition, new airports, convenient public transportation, and roads are being built. The UAE’s infrastructure has been ranked as some of the best in the world by the WEF’s Travel and Tourism Competitiveness Report. The country ranked second for road quality, third for air quality, sixth for port infrastructure, and eighth for the ground transport network.
6. Dubai Free Zones
Foreigners are allowed to create and operate businesses in Dubai’s Free Zone with full ownership and without partnering with a local Emirati partner or agent. All Free Zones differ from one another and provide permits for diverse industries. For example, there are free zones for media companies (Dubai Media City), financial institutions and service providers (Dubai International Financial Center or DIFC), healthcare providers (Dubai Healthcare City or DHCC), educational and training institutions (Dubai Knowledge Village), and many others. In Dubai alone, there are already more than 20 Free Zones operational in the country.
7. Multinationals Companies
Many well-known international corporations have regional offices in Dubai including BBC World, Microsoft, HP, Oracle, Nokia, Adidas, Sony, Boeing, Royal Bank of Scotland, Shell, Procter & Gamble, Emirates Airlines, HSBC, and LG Electronics. Additionally, The American University, Michigan State University, Rochester Institute of Technology, Wollongong University, London School of Economics, London School of Management, and Hult International Business School are a few other institutions that have campuses in Dubai.
8. Airports and Sea Ports
Jebel Ali Port, one of the largest seaports in the region, and Dubai International Airport are both located in Dubai. You won’t experience any difficulty with international freight since it is very easy to import goods into Dubai from anywhere in the globe and export them out of Dubai to any location in the world via air, land, and sea.
9. Living Standards
The superior standard of living and living conditions that one can experience in the Emirate is one of the major reasons to choose Dubai for business. The UAE was ranked as having the best standard of living out of 160 countries, and as having the best quality of life in the MEA region. The UAE is currently listed as the 14th happiest country in the world according to the UN Happiness Index. Living in a high-quality setting with high standards of living can increase your productivity and inspire you more.
10. Strategic Location
Dubai is situated in the center of the 400-mile-long United Arab Emirates coast. The city is strategically located for conducting a variety of business activities, including international trading, import and export, logistics, tourism, hospitality, event management, and so forth. Its strategic location between Europe, Asia, and Africa makes it a fine place to do business.
Due to its easy access to the sea and one of the biggest airports in the world, Dubai makes it easier to transfer commodities from the East to the West. As a result, Dubai has access to 2.5 billion consumers in the CIS countries, the Gulf, Europe, Africa, and Asia.
Dubai has evolved into one of the most sought-after locations for conducting business, working, and residing for a number of reasons. Nearly 90% of the population in Dubai is made up of immigrants from more than 200 different countries belonging to different parts of the globe. The Emirate’s business and investment possibilities draw the attention of foreigners, among other things.
Things to Consider When Moving SE Business to Dubai
There are many factors to take into account for your business’s present and future. It is advised to consult a qualified business consultant who can explain your options depending on:
- On-going Support: Are you conscious of your company’s obligations to maintain compliance once company setup is complete?
- Budget: Do you have enough budget to move your company to Dubai?
- Location: Can you access ports, airports, storage, offices, and more.?
- Business Activities: Can you carry out the necessary tasks to operate your company in Dubai?
- Visa Requirements: Can you obtain visas for your family members, your employees, and yourself?
- Banking: Do you know what banking choices your business license allows you?
How to Setup a Business in Dubai, UAE?
Follow the steps given below to set up a new business in Dubai, UAE:
1. Choose a Business Activity
Choose a business activity for your startup. Before selecting an activity, consider the viability of the chosen business activity with respect to the UAE market. Make sure to thoroughly examine the viability and profitability of the activity before establishing a business in Dubai.
2. Choose the Jurisdiction
Next, Select when to launch a business in Dubai, United Arab Emirates. The Mainland, Free Zone, and Offshore economic zones are used to divide the UAE market. Jurisdictions are another name for these economic zones. Every jurisdiction has a unique set of rules and laws governing how businesses are established. They also differ as per various commercial requirements. The jurisdiction you choose for your business will depend on your business needs and the nature of your business operations.
3. Finalise the Company Structure/Legal Form
During the early stages of business planning, choose your company’s structure or legal form. When founding a business in the UAE, selecting the legal form for your organization is crucial. It establishes the framework and tone for handling profits and losses. It also handles how you should allocate your assets and resources. Choosing a company structure will assist in giving your business a layout. You must choose your company’s legal structure before you can submit your license application. Some of the legal formats or business structures that you can use to register your company in the UAE are as follows:
- Holding company
- Limited liability company (LLC)
- Civil company
- Sole establishment
- Local company branch
- Foreign company branch
- GCC company branch
- Free zone company branch
4. Get Approval for the Business Name and Activity
Before you can proceed and begin the process of setting up your company in the UAE, the Department of Economic Development (DED) must authorize the trade name for your business. Your chosen business activity is also approved at this step. After receiving the approvals, you will need to submit the necessary paperwork to apply for your UAE trade license.
5. Apply for the Trade License
In the United Arab Emirates, trade licenses—also known as business licenses—are of four different types which are:
- Tourism License
- Commercial License
- Industrial License
- Professional License
You can choose any one of them depending on your business. If you intend to launch a business in the UAE mainland, you can also apply for any of these trade licenses. The license structure in UAE free zones varies and is also based on the type of commercial activity your business chooses to engage in.
6. Register Your Company
Licensing and company registration are simultaneous processes. Yet, there are many steps to the overall documentation and approval procedure. You must also get all necessary government approvals at this step, as specified by the Department of Economic Development (DED). Also, the documentation required varies depending on the business’s type and activities.
7. Look for a Local Agent (If Applicable)
For certain businesses, obtaining a local partner is a must for starting a business in Dubai. A UAE citizen alone can act as an Emirati partner or agent. Hiring a reliable local agent is crucial, especially if you’re a new business owner planning to launch your company in Dubai. You must establish contacts with businesses that provide corporate sponsorship, where you will receive official authority and full ownership of your company.
8. Obtain External Approvals
Depending on your business activity, DED may ask for extra approvals from other governmental or non-governmental organizations. For instance, some businesses may require to obtain external approvals from embassies, the municipality, certain banks, etc.
9. Draft Memorandum of Association
To set up a business in Dubai, it’s critical to comprehend the complexities of a Memorandum of Association (MoA). The MoA should be written in compliance with the mandates of the UAE government. Prior to forming a company in Dubai, MoA should also take your business interests into account.
10. Rent an Office
You might need to rent an office space or select a shared workspace at a business center, depending on your business’s particular needs. It will allow you to apply for visas. The amount of visas you can request from the Department of Economic Development (DED) depends on your office space.
11. Obtain the Tenancy Contract & Ejari
An Ejari can be necessary in order to launch your own business in Dubai. You and the real estate company, whose office space or shared workspace you wish to rent, are bound by this tenancy contract. The Real Estate Regulatory Agency (RERA) oversees the internet platform Ejari.
Also, it makes sure that both parties to the tenancy are treated fairly and openly. To activate your Ejari account, you need to upload your tenancy contract and a few other documents. Ejari is crucial because you need it for obtaining or renewing visas for your employees and/or family members.
12. Obtain Initial Approval
In order to start a business in Dubai, you must first receive initial approval from DED. According to this approval, the UAE government does not oppose you launching a business there. You cannot move on to the next stages of the application procedure without receiving this approval.
13. Recieve the Trade License
You must provide the following documents in order to obtain your UAE trade license:
- NOC for partners (if any)
- Memorandum of Association (MoA)
- Trade license application
- Trade name reservation certificate
- Relevant government forms
- Initial approval certificate
- Tenancy contract
- Ejari registration certificate
- External approvals (if any)
- Copies of partners’ passports
- Other requirements by the DED (if any)
Last but not least, all of these documents and government fees should be submitted to the Department of Economic Development.
FAQs – Frequently Asked Questions
Can a Swedish start a business in Dubai?
Yes, a Swedish can start a business in Dubai. To do this, you only need to adhere to a few guidelines and follow all necessary procedures.
How do I register a company from Sweden to Dubai?
With the assistance of competent business setup professionals like RIZ & MONA CONSULTANCY, citizens of Sweden can register a company in Dubai. After receiving the required documentation from the applicant online, our skilled staff will organize the company setup process in Dubai for you.
How can I move my business to Dubai?
To move your business to Dubai, you must go through a detailed process that includes applying, obtaining visas, supplying documentation, etc. For further details, get in touch with any business setup consultants in Dubai.
Can I move my business to UAE?
Yes, business owners from all over the world are welcome to relocate their businesses to the UAE. UAE is a great area to launch a new business or relocate to an existing one because of its business-friendly atmosphere, which encourages firms to grow and generate huge profits.
Can I move my SE business to Dubai?
Yes, you can move your SE business to Dubai. You can move your SE firm to the UAE by submitting the application and the necessary paperwork to the relevant governmental authorities.
Move Your SE Business to Dubai with RIZ & MONA CONSULTANCY
The SE company can easily be relocated to Dubai, United Arab Emirates. Swedish entrepreneurs and businessmen can do it with ease if they follow the discussed process. For a smooth transfer of your SE business, get in touch with us, and we’ll take care of everything on your behalf.