Dubai continues to be one of those global cities that are friendly and supportive of foreign investors. Its huge and diverse marketplace and multicultural population make the city one of the best countries to open a business in. There are other advantages to owning a business here as well so if you have always wanted to expand overseas, you won’t go wrong with choosing this city as your next expansion target.
Business Setup in the UAE, though, can be a huge step to take. Investing in the right business setup services in Dubai will help ensure you are on the right path to opening your Business or branching out in this city. Knowing some important facts about setting up a business in Dubai will also help you have an easier time as you go through this process.
Below are facts you should have to know about Business Setup in the UAE
- You can own 100 percent of your Business
Even if you are a foreign entrepreneur, you can have sole ownership of your business. You won’t need a local sponsor or agent to set up and run your business. You can do this by setting up your business in one of Dubai’s free zones.
Aside from owning 100 percent of your Business, if you set up your business in a free zone, you will enjoy the following benefits:
- One hundred percent return of capital and profits
- Zero income tax
- Exemption from import and export duties
- Eligibility to open a local bank account
- Easy recruitment procedures
At present, there are 45 free zones in Dubai. These include the Jebel Ali Free Zone, Dubai Airport Free Zone, Dubai Media City, Dubai Knowledge Village, and the International Media Production Zone.
- The type of business you will open will determine the license you need
Whether you will open your business in a free trading zone or in the mainland area of Dubai, you need to have a license to operate.
There are three main business licenses you can apply for: commercial, professional, or industrial. The license will define the basis of your operations and, as such, you have to choose the best one that covers and best represents your business.
- Each free zone has its own set of regulations and procedures for approval
Depending on the free zone you choose and the type of business you will set up, you will have to follow certain rules regarding the structure of your firm.
In Dubai, there are a large number of free zones that can cater to your business requirements, depending on your trade or area of specialization. Popular Dubai free zones include the following:
- Dubai Airport Free Zone
- Dubai Internet City
- Dubai Media City
- Dubai Auto Zone
- Dubai Biotechnology & Research Park
- Dubai Flower Centre
- Dubai Gold and Diamond Park
- Dubai Healthcare City
- Dubai International Financial Centre
- Dubai Knowledge Village
- Dubai International Academic City
- Dubai Logistics City
- Dubai Maritime City
- Dubai Multi Commodity Centre
- Dubai Outsource Zone
- Dubai Silicon Oasis
- Dubai Studio City
- Dubai Techno Park
- International Media Production Zone
- International Humanitarian City
Each free zone is governed by a particular local authority and has to adhere to industry-specific regulations. And since professionals in different industries have different qualifications (e.g. licenses and certificates), it follows that the requirements needed to operate in each free zone will also vary as well as the procedures to be followed.
Additionally, in some free zones, license processing can be completed within a few days. However, in others, it might take around 30 to 40 days before you get issued a license.
- You may not need to pay the minimum capital at the outset
The minimum investment differs depending on the type of business you want to establish. However, in Dubai, it is not compulsory for the majority of businesses to have an initial investment.
There are certain instances wherein capital investments are emphasized during the Business formation stage. It can also be stated on the memorandum of association of your proposed Business. Although the initial outlays are highlighted, you may not need to immediately pay even the minimum capital at the time of setting up your business.