Business Setup In UAE
Dubai is the Middle East’s business capital. It is located in the United Arab Emirates’ north-eastern area. Dubai is one of the world’s fastest-expanding economies. The real estate, tourism, trade, and financial services industries contribute the most to its GDP. Even though the UAE was founded on oil exports, oil and gas exports today account for less than 5% of its GDP.
Dubai has established itself as the largest trade center in the United Arab Emirates. It is mostly owing to excellent business sites and an unrestrictive climate. Dubai provides easy-going corporate working circumstances, asset protection, minimal liability, total secrecy, and significant tax advantages.
Furthermore, due to its unique liberalization policies, Dubai offers firms a remarkable development trajectory. Dubai is a diverse market in one of the world’s wealthiest and most wealthy areas. It operates in an open market with no hidden trade obstacles, regulations, or quotas. The nicest thing about Dubai is that it is easily accessible by air and sea. Dubai now has 90 airlines and 170 shipping lines in operation.
Dubai has expanded at a breakneck pace over the last three decades, transitioning from an oil-exporting economy to an innovation-led corporate sector. Dubai has emerged as the preferred destination for all company owners and international investors. This decision was made for a variety of reasons.
Dubai draws international investment primarily because of its strategic position and business-friendly government policies. These are the two most compelling reasons for company entrepreneurs to establish themselves in Dubai. Furthermore, an open economy and sector-oriented free zones entice entrepreneurs to spend their money and establish a business in Dubai.
- Business Simplicity
It is quick and uncomplicated to establish a business in the UAE. Perhaps this is why the UAE is ranked 16th in the World Bank’s Ease of Doing Business rankings. Setting up a business in Dubai should take no more than a week if all documentation is granted. Another reason the UAE ranks so well in the Ease of Doing Business rankings is the number of free zones established by the UAE government in Dubai. Dubai’s free zones allow for 100 percent foreign ownership, total repatriation of earnings, and significant tax breaks.
- Low taxes and an open market
In Dubai, the government and regulatory authorities have minimal influence over the actions of the private sector. Personal income is exempt from taxation. Dubai’s economy is based on free commerce. It has minor import tariffs in place. In terms of labor policy, Dubai has enforced liberal labor rules. This enables Dubai-based businesses to hire employees from anywhere in the globe, regardless of nationality. Furthermore, Dubai has put strong procedures in place to combat fraud and money laundering. This enables international investors to invest in a clean environment with no concern.
- Excellent Infrastructure
Dubai is notable in the world because of its highly modernized infrastructure. In Dubai, there are various international-standard free zones. A world-class airport and sophisticated seaports serve thousands of travelers every day. Furthermore, Dubai boasts a modern and extensive motorway network that allows for convenient transit. The dependable telecommunication infrastructure, consistent power supply, and a plethora of facilities are enough to entice business owners from all over the world to establish their operations in Dubai.
- Location with Easy Access
Dubai is at a strategic location. It is central to both Africa and the Commonwealth of Independent States (CIS). Dubai is located halfway between the Far East and Europe. At the time, more than 85 airlines operate in Dubai. These airlines carry passengers to over 130 locations worldwide. Furthermore, Dubai is served by approximately 120 shipping lines. Simply said, Dubai is the most conveniently accessible place from anywhere on the planet.
- High Living Standards
Dubai people live in a comfortable city. Dubai boasts a huge population of international inhabitants, making it one of the most diverse cities on the planet. Dubai is the global leader in real estate, housing, educational institutions, and leisure activities. Furthermore, thanks to its low crime rates, Dubai has become one of the world’s safest cities.
How to Start a Business in UAE?
Are you wondering how to establish a business in Dubai? GVMC will assist you with establishing a business in Dubai that meets all of your criteria as well as UAE legislation. Economic and political stability are both critical to the overall prosperity of any area or country. Dubai takes a very professional approach to banking and labor relations. Furthermore, the government’s liberal policies are beneficial to business. The benefits of having an open and free economy attract large-scale investments to Dubai.
World-class infrastructure facilities in Dubai in the fields of telecommunications, electricity, aviation, and transportation contribute to Dubai’s unique position in the eyes of investors. Dubai’s strict and aggressive policymaking backs up its immaculate and extensive infrastructure development.
Where Can I Start a Business in Dubai?
Another crucial decision to make when starting a business is the location. There are a few distinct elements to consider:
- You will have complete control over your company.
- You may be eligible for tax breaks.
- The location is both handy and affordable.
- The location is crucial for your company.
Company Setup in Dubai Free Zone & Mainland
The business locations in Dubai are categorized into two major zones:
- Freezone Company Setup
- Mainland Company Setup
Creating a Company in Dubai Free Zones
In Dubai, several locations have been classified as free zones. These are good locations for international entrepreneurs to establish their firms. The free zones are classified according to their distinct region of operation. The free zone provides two primary advantages: ownership and taxation.
Dubai Free Zone Areas:
The United Arab Emirates has around 45 free zones. These are defined based on the specific area/sector of operation:
- Information technology(ICT)
- Information and logistics
Establishing a Business in Mainland Dubai
This geographical jurisdiction focuses on commercial enterprises and provides intriguing prospects. Entrepreneurs in the following industries could consider renting a facility on the mainland:
In contrast to free zones, however, foreign owners are required to possess just 49 percent of the company. Exceptions to this restriction include economic activity with GCC ownership and partnerships between GCC corporations and Emiratis.
Popular Business Locations in Mainland Dubai:
- Shaikh Zayed Road
- Business Bay
- Al Qusais
- Al Quoz
- Bur Dubai
- Al Karama
The Benefits of Starting a Business in Dubai
- Personal and corporate taxes are exempt on the mainland.
Personal and corporate taxes are not levied on mainland enterprises in Dubai. However, there are local and customs taxes that must be considered.
- There is no minimum capital requirement.
The minimum share capital requirement is unrestricted. Most free zones have a minimum valuation that any business operating in the zone must disclose.
- Operational Flexibility
Companies operating on the mainland often have greater flexibility and fewer limitations. They can operate anywhere in the UAE, whereas free zone firms are confined to operating on the mainland.
Businesses on the Dubai mainland can also deal with other firms in Dubai or the United Arab Emirates. Unlike free zone enterprises, you would not have to worry about legal ramifications if you wanted to engage in any type of commerce. Of course, some prerequisites must be completed. However, most administrative processes are straightforward and require little time to complete.
- Visas for Employees
As the owner of a mainland firm, you have the advantage of being able to get visas for several employees. The number of visas granted will be determined by the office space, although there is significantly more flexibility than is available to free zone owners.
Furthermore, the registration processes are substantially quicker. There are no limitations on currency or recruiting, and there is no requirement for yearly audits. Overall, establishing a firm on the Dubai mainland allows for greater commercial evolution as well as ease of adaptation to new markets.
- Rent Several Offices
Companies on the mainland have the potential to diversify and grow their reach. They can even rent out many offices in the city, allowing them to simply enter and grab the market.
The Benefits of Establishing a Business in a Free Zone:
- Foreign Entrepreneurs with Sole Ownership
Foreign business owners in free zones have complete ownership of their companies. This implies you won’t have to rely on a national as a sponsor or partner. As a sole proprietor, you have ultimate authority over your company’s actions. A minimum capital requirement is also not imposed on single-owner enterprises.
- Exemption from Tax
Most free zones exclude import and export taxes and impose minor customs fees.
This allows you to maximize your earnings; these exemptions may also be renewed for a set length of time.
- Market Trends Awareness
The majority of free zones are sector-specific. This allows you to keep up to date on current business trends in the industry to which your company caters. Most free zones provide the infrastructure and logistical services that your company requires to survive and develop. Businesses in free zones benefit from cooperation and learning possibilities, as well as cost savings.
You may benefit from customizable leasing periods, simple registration and renewal processes, and a free profit return.
Types of business licenses in Dubai:
Starting a business in Dubai is a great idea. However, to realize these incredible benefits, you must first obtain a company license.
How to Apply for a Business License in Dubai
The business license is a legal document that allows you to conduct business in Dubai. It also acts as evidence of your skill and expertise. The license in Dubai is issued by the Department of Economic Development (DED).
To encourage business development in the region, the DED has made the procedures easy and fast.
Categories of Business Licenses in Dubai
There are three types of licenses offered in Dubai, these are:
- Commercial License
- Industrial License
- Professional License
The Cost of Starting a Business in Dubai:
The entire cost of establishing a business in Dubai is an important consideration for entrepreneurs. To plan properly, you must have a realistic computation in mind. Having a detailed cost breakdown can also save you a lot of unnecessary overheads and fees.
As previously said, there are two zones in Dubai where enterprises may be established. The prices for both of these venues vary greatly. Other cost-influencing elements include:
- The kind of company license you get
- The sort of business/company you establish (LLC, FZE)
Other fees for forming an LLC in Dubai may include:
- Fees for establishing an LLC in Dubai
- The payment made to the Department of Economic Development
- The administrative charge for obtaining a mainland trading license
- Fee for a one-time contracting license
- Real estate broker commission
- Other fees vary depending on the type of company formed. Investor visa costs and staff visa fees may be required for LLC firms.
How much does an Investor Visa cost?
The investor visa costs around 3200 AED, which includes basic insurance, medical care, and an Emirates ID.
How much does an Employee Visa cost?
Hiring an employee typically costs between 7000 and 7500 AED, including insurance, medical, and residence card.
To summarize, Dubai is a business center with several investment options. It has never been easier to start a business in Dubai. If you are having problems conducting the procedure, you can use a reputable consulting agency. You may also contact us if you need help establishing a business in Dubai!
Choosing the right place and choosing the best license for your business can be a difficult but very important task.