10 Things to Know Before Opening a New Business in Dubai
The United Arab Emirates has one of the biggest economies in the world and is also one of the most diversified. The country is also a member of the World Trade Organization, playing an important role in global trade and commerce.
Understandably, many entrepreneurs and investors look forward to the prospects of business setup in Dubai.
If you are planning to start a new business in the financial capital of the UAE, you should know these 10 things as they will influence your decision.
1. Dubai Offers Tax Incentives for Incorporation
The government of the UAE provides tax exemptions on personal income, withholding tax, and corporate tax. In other words, you get full profits, which you can reinvest to grow the business. This allows investors to enjoy doing business and living in the global city of Dubai.
Minimum taxes and a simplified tax structure ease various aspects of opening and running a business. That said the right company structure and competitive business strategy can help you qualify for more tax benefits. So, where you save on taxes, you can invest in improving business processes and workflow efficiency.
2. The Local Rules and Regulations are Business Savvy
The UAE is considered one of the best countries in the world for doing business, and that’s due to its strong legal structure. It’s not just for the business, but also for foreign investors. The rules that govern foreign investors are entirely different from those that govern labor, with criminal law the only exception.
For instance, did you know that you can complete business registration in Dubai and get your business running in less than a month? Better yet, you can get company registration and licensing within 24 hours in other Emirates when you consult with us. Yes, the process is fairly streamlined to start a business and regulations are straightforward when doing business.
3. The Government is Very Supportive
The UAE is one of the most secure countries to live and to do business in the world and has created a benchmark for governance thanks to strong policies. All types of foreign investment are encouraged by the visionary government of Dubai.
His Highness Mohammed bin Rashid Al Maktoum has spearheaded the economic transformation in Dubai and geared the government towards providing various business opportunities to foreign investors from around the globe.
4. Different Ownership Options are Available to Expats
You can choose to maintain partial (up to 49%) ownership in all seven Emirates or 100% ownership by opening a Free Zone company. Business setup in Dubai is flexible in terms of ownership, and investors have the opportunity to enter various developed sectors.
With partial ownership, you will have a local (UAE national) partner, so if you’re taking this option make sure you find a reliable partner. Ownership regulations will also depend on the type of company and the location where you wish to incorporate your business.
5. Choosing the Right Structure is a Key
This will define whether your business succeeds or fails. Limited Liability Company is one of the most common structures for business registration in Dubai, while registering a Free Zone company becomes more and more popular among foreign investors, and will allow you to maintain 100% foreign ownership in such Free Zones like DMCC, Dubai South, Dubai Design District, Dubai Internet City, etc.
6. Free Zones Offer Great Benefits
As mentioned before, all Free Zones in the United Arab Emirates allow you to maintain 100% foreign ownership with 0% corporate tax for the next 50 years. The various Free Zones in the country are home to leading global companies in the commodities sector including ENI, American Express, General Mills, Total, Viacom, and Petronas to list a few.
Free Zones offer purpose-built infrastructure, attractive networking opportunities, flexible office solutions, and streamlined immigration procedures. If you’re looking for business strategy consulting on the incentives of 100% foreign ownership in Free Zones, you can talk to our business setup experts to get a personalized solution for your business.
7. The Labor Market Is Huge
The immigration and labor market policies implemented by the government of Dubai have refined the manpower available in the city today. Professionals of more than 200 nationalities allow businesses to make use of highly educated experienced, and motivated staffing opportunities.
The UAE is a high-income country, which means good talent will come at a good price. Before proceeding to hire employees and start operations, consider doing some market research to find out the talent pool available in the city for different jobs in your business.
8. The Currency Exchange Rate Is Favorable
The UAE currency is stable with major currencies in the world, including the USD as currency rates have remained largely unchanged since 1997. The exchange rates are favorable with most countries in the Arab World, Africa, Asia, and Europe. For nearly two decades, the currency has remained relatively unchanged.
The stability in the purchasing power of the AED and its strength against other currencies allows business in the UAE to gain leverage in global trade. In addition to that, the world-class banking industry provides you with the competitive edge to stay on top in your market.
9. UAE Has a Bright Future
The population growth in the country is one of the highest in the world, and more than 80% are expats. Dubai is a logical choice for relocation with its peaceful lifestyle, world class facilities, and not to mention the best tourist attractions in the world. All the biggest expos, including the Expo 2020 Dubai, are organized and held here, creating thousands of investment and job opportunities.
Expats who decide to live in Dubai can benefit from unmatched living standards and high return on investment on property, between 10% and 15% per annum. The UAE has set global standards in education from schooling to university level. The University of Wollongong, American University of Dubai, and Manipal are some of the prestigious educational institutions that find their home in Dubai. Overall, Dubai, undoubtedly, has a very bright future.
10. Business Strategy Consulting Helps
Business setup consulting services provided by My Business Consulting DMCC can help you better understand the local market and how to gear up your business towards growth and success. We provide consultancy and support along the whole company formation process in Dubai, business and personal bank account opening, immigration support for you, your dependents and employees, and much more.
Choosing from over 50 Free Zones, different corporate structures, and banking options can be overwhelming. Let My Business Consulting DMCC help you to start a new business and life in Dubai so that you grow as you go.