Myth 4. You Cannot Establish a Business in Dubai Without a Local Partner
The Truth:
Many foreigners assume that you must associate or partner with a UAE local resident in order to receive a business license and launch a company in Dubai. It is somewhat true. For the mainland, you need the help of a local resident. But for working in free zones of Dubai, there is no such requirement. There are more than 60 free zones in the UAE where you can register your business and have 100% ownership. The best option for a foreigner is considered to be a Dubai free zone.
Contrary to popular belief, free zones are typically found right in the midst of towns rather than in rural areas. It is also possible to obtain a license as an expert if you can show that you are an experienced authority in your industry and that you will own 100% of the business.
Myth 5. Costly Business Incorporation
The Truth:
Launching a business is costly in Dubai but there are affordable options as well. In order to establish a business in Dubai, capital investment is necessary. The UAE is regarded as a business hub due to its simple business incorporation process. Due to the economy’s diversity, starting a company in Dubai, UAE is substantially more affordable and enjoyable than doing so in Europe.
Other advantages of establishing a business in Dubai include a low VAT rate of 5%, the absence of income tax, immense business support, the absence of bureaucracy and corruption, and a business-friendly environment.
Myth 6. Dubai has a challenging business setup process
The Truth:
It may sound difficult at first to acquire a business license in the United Arab Emirates. But getting your license is considerably easy if you follow simple instructions in order. Nevertheless, it is recommended to contact company formation experts like RIZ & MONA to assist you to get a business license and set up your company in a pain-free procedure in order to save yourself from all the trouble and hassle.
Myth 7. The legalities take time to deal with
The Truth:
Legal proceedings can be handled efficiently with the help of company formation experts in Dubai. Foreign investors would be completely unaware of the legal processes the UAE uses to incorporate businesses. This, however, should not be a barrier preventing investors from forming their ideal company in the UAE.
The majority of business owners or foreign investors value their time to a great extent. That is why they prefer moving forward with qualified business setup consultants who can help them in the proceedings and practically launch their business ASAP.
Myth 8. Speaking Arabic fluently is essential in order to merge into the business society of the UAE
The Truth:
Working in the UAE will expose you to individuals from hundreds of different religious backgrounds and various countries. Since everyone seeks to communicate, English has emerged as the most commonly spoken language in the UAE.
For instance, if you speak at least a basic level of English in Dubai, you will always be able to get by because the language is used extensively in media outlets like television, newspapers, radio, and websites. English is also spoken on all official documents and outdoor & indoor signage. 99% of the time, when you phone any company, you will receive the answer in English.
Myth 9. Finding investment is almost impossible
The Truth:
This myth is widely believed across the country and the world. But in reality, getting money in the UAE is quite the contrary. The UAE government is particularly supportive of local entrepreneurs and business growth. Because of this, the government has established business incubators for small and new businesses launched in the UAE.
In the UAE, getting money and infrastructure support for your initiatives is really simple. Business accelerator programs are put up in free zones to encourage entrepreneurs with creative business concepts.
Myth 10. You must have business and tax law knowledge
The Truth:
It is sufficient for entrepreneurs and business owners to have a fundamental awareness of the different commercial and tax laws in Dubai. It is not necessary for them to be fully aware of the laws legally implemented in the UAE.
But it is advisable to stay in touch with business professionals like Riz and Mona who will let you know of the recent and upcoming changes in the law on time so that you may avoid unexpected taxes and unnecessary fines. In this way, you will stay up to the changing legislations in the region.
In other words, you should never rely on misconceptions you have seen or heard and instead always consult business specialists in Dubai to learn the precise truth about a company.
