Thinking about starting a business of your own? Great! The entrepreneurial itch is just the starting point. It is a leap of faith to set up your own business. Yes, you will be trying something new and pushing out of your comfort zone, But there are numerous benefits that come with it—No more 9-to-5 jobs, the flexibility of working whenever you want, making more money than what the corporate sector offers you, to name a few.
We are aware of the value and importance of Dubai with regard to running a new business. Its fastest-growing, stable, and electrifying economy makes it an ideal area for entrepreneurs like you to start your business in Dubai prosperously. Not only these but there are myriads of other reasons that make Dubai the most attractive and suitable destination for investors to run a company. Scroll down to find out more about them.
Table of Contents
Why Start Your Business in Dubai?
Location-wise, there is no city more attractive than Dubai to do business. It is one of the most profitable business hubs and commercial capitals of the Middle East. Trading between the various markets of Africa, Europe, the East coast of America, and Asia take place in this trading region.
Access to countries of these continents with established economies is very easy and that is why it has one of the busiest airports and seaports in the world. Therefore, the ease of accessibility to such huge markets gives you an excellent opportunity to set up your business and trade internationally.
We can never praise Dubai enough for its ever-growing economy. With a remarkable annual trade surplus and outstanding per capita income, The Emirates is home to one of the best economies in the Middle East. Companies are provided with highly stable financial situations and financially favorable conditions.
Plus, the investments in Dubai have also rapidly increased in recent years. This extraordinary addition of foreign capital has further strengthened Dubai’s economy. Thanks to the strong economy and business-friendly conditions, numerous billion-dollar conglomerates, wealthy companies, and booming startups have moved to Dubai to expand internationally. So, if you are looking to launch a new company, you can happily invest in Dubai.
Top-Class Amenities and Infrastructure
You will find flawless infrastructure and next-level amenities in Dubai. From standard necessities to full-fledged workspaces for offices, you will find everything you require to open your business. Everything showcases the greatness of the city’s infrastructure including ample power resources, top-notch warehousing, world-class public transportation, the latest telecom networks, widespread road networks, top-of-the-line residential accommodations, and much more.
Businesspeople who came to the Dubai Expo 2020, which is currently happening, are eyewitnesses of the exceptional infrastructure capabilities of Dubai. Whatsmore, The government bodies have heavily invested in this sector to catch the eyes of more investors, businessmen, and entrepreneurs.
Ease of Doing Business
Setting up a new company in Dubai is not a hard job anymore. Due to cooperative government bodies and latest technology facilities makes it effortless to run a new business. There are countless sources of funding in Dubai that can help you in the rapid growth of your business. If you have an out-of-the-box business idea, it can become a reality with the help of multiple funding bodies. The help is provided in the form of financial support, expert guidance, mentorship, and technical support. Furthermore, according to a law of the UAE government, small businesses are awarded a minimum of 10% of government contracts each year.
We recommend you start your business in one of the free zones of Dubai. In free zones, you can visit various venture capital forums to find yourself a robust source of funding. You will come across various startup incubation centers in free zones having outstanding workspaces with all facilities. It will help you in rapidly growing your business. We can help you with the company registration and formation process. We will provide expert advice as well as guide and assist you throughout the complete process to ensure everything goes smoothly.
Zero Tax Policy
Dubai offers you hassle-free business opportunities due to total exemption from all taxes including personal, income, custom, and corporate tax. It means you don’t have to learn about the tax laws of Dubai, UAE. Plus, you won’t have to get into the trouble of tailoring your business’ financial policies and cashflows to reduce taxes. Complete export and import tax exemption, full repatriation of profits and capital, and zero currency restrictions can further benefit your business to help it grow faster.
The only tax that some of the companies must pay is 5% Value Added Tax. It was introduced back in January 2018 and is valid only on specific business activities. In order to keep your business profits without giving any income or business tax to the Emirates Government, you must register your company in a free zone of UAE. This will also allow you to improve profitability and give extra liquidity to your company.
How to Start a Business in Dubai?
Starting a business in Dubai is a smooth and pretty much straightforward process that requires little to no hassle. All you need to do is get some of your documents verified by the authorities and get a few approvals from the government.
The following steps can give you an idea of how to set up your new business in Dubai:
- First of all, you will select a business activity for your company. You may choose an activity depending on the license from the categories listed below:
For Industrial License:
For Commercial License:
- Importing & exporting goods
- Selling electronic products
- Real Estate
- Commercial brokerage services
- Selling of construction material
- Retail stores
- Rent-a-car services
- Then, you will choose the area to open up your company. You can either choose a place in a free zone or the mainland. Both have their own advantages but for new entrepreneurs, it is better to choose the free zone due to the many benefits it offers. If you decide to set up your business on the mainland, you will require to find a local sponsor and obtain a NOC letter from them.
- Next up is the preparation of the Memorandum of Association of the company. MoA contains the basic conditions on which the business will run the operations. For instance: Issuance of shares, the primary purpose of the business, capital investment, etc.
- Now comes the time to get approval from DED. You will require to obtain initial approval from the Department of Economic Development for your business.
- After the initial approval is granted by DED, you have to register your business under a unique trade name.
- After registering the trade name, the business owner needs to arrange a physical office space for their setting up the company.
- Post that, the business owner will have to submit an application for the trade license.
- Once you have the license, you can easily open a bank account in any international, Islamic, or local bank.
- If you are a foreigner, you will need to go through the process of immigration and visa.
Setup Your Business in Dubai with Riz and Mona
Avail of the best and most affordable packages of business setups with Riz and Mona. We will provide you with more detailed information about business formation and registration in Dubai. Simply contact us and we will handle the complete process of setting up your company in Dubai. You can get in touch with us and avail of our help and services regarding visa applications, company registration, selecting a business activity, and much more.