Starting your business is not at all an easy job. You are required to figure out various things from the right product to correct the audience, how to create engagement to reaching out to the right audience.
This blog is not about how to business setup in Dubai or what all you should know; it’s more about why Dubai is a great place for starting your business, what makes it stand out in comparison to others.
In the last 30 years, Dubai has changed drastically from a small desert to a megacity of seven-star hotels, business parks, the tallest buildings and top-class infrastructure. These advantages bring out more opportunities for business.
Starting a business in Dubai is not a cake walk you need to look at various considerations before starting your business in Dubai. But, keep in mind that Dubai welcomes foreigner business investment whole heartedly.
TYPES OF COMPANIES
Starting a business venture in Dubai, needs proper research, statics and here are the three categories in which you can start your business
- Mainland Business: It is the most common form of business but the participation of UAE local sponsor in mainland companies is compulsory. So, if you plan to open a local company you need to find a local sponsor who could invest in your business and will own 51% of the shares.
- Offshore company: Offshore companies or International Business companies have no right to conduct business within the country; they can have a real estate or open business account here. They operate only on the International market.
- Free zone companies: These are the most preferred location and provide many benefits from 100% ownership to affordable costing.
Why Dubai is an ideal spot for business?
Dubai is ranked as the easiest place to start a business in the world stated by the World Bank. There is a variety of reasons that make Dubai as a business venture which is mentioned below:
BUSINESS FRIENDLY POLICIES
The government is a great supporter and introduces policies and programs that favour the corporate world. The tax-free scheme makes this place business-friendly. You get an exemption from the vast number of tax like personal, corporate, capital gains, Vat, and this makes this place extremely business-friendly. There are free zones where you don’t have to pay taxes and get various other benefits. Here you can check out how to do Ajman free zone business setup.
Benefits of free zones are the following:
- Complete exemption from paying any import, and export tax.
- There is the possibility of foreign ownership of the company.
- You don’t have to pay any corporate tax for up to 50 years.
- No personal income taxes.
- The city offers you support services like sponsorship, hiring, and so on.
You can completely own businesses without making Emirati agent a partner. There are 22 of these clusters and include different sectors: Health, education and Media.
Dubai Internet City and Dubai Silicon oasis have had the presence of the tech giants like Facebook and Microsoft.
GETTING A VISA
Getting a visa is quite tough but if you have a business in Dubai getting a visa is no big deal. If you have a business in Dubai this means you can easily get a UAE residence visa. It makes leasing property, movement in and out of the country quite easy.
Dubai is a go-to go place for everyone. Dubai has an expanded market, and it helps the youngsters to explore and build brands and create new opportunities by meeting new people daily.
If you have a local company you need to work with your sponsor to get you the first time visa.
If you have enough money and a stable political environment the city would love to welcome you. The city is quite rich in different types of resources. Being a city of well-educated workforce finding a local help isn’t that difficult.
You can easily find affordable office places in the city; in fact, some co-working spaces allow the foreign entrepreneur to survive. There are plenty of venues to host conferences or meetings to liberate younger talents.
OPEN TRADE SYSTEM
Dubai is a member of the World Trade Organization, and this helps start-ups to enter International markets and maintain stable trade relations with proper security. Dubai participates with global business; such as North America, Europe, and many other regions. It is situated on the cross borders of the European continents, and this is the reason why Dubai believes in an open trade system.
CONNECTIVITY IS MAJOR HELP
Due to the connectivity, it offers to various parts of the world Dubai offers an excellent platform to expand your business globally. The Dubai International airport connects the major continents of Asia and Africa with the western world to bring people together and create more opportunity. Dubai has a high quality of the transportation system. As well as Dubai Metro is available.
DON’T WORRY ABOUT SAFETY
Dubai has some stricter laws and police forces, and that what makes this place quite safe for friends, family and you. In Middle East, Dubai is considered to be one of the safest cities. For drinking and creating a nuisance, you could go behind the bars.
21 is the legal age to drink in Dubai. Police go patrolling regularly. You can drink in a licensed spot like hotels or bars. They have a zero-tolerance policy for drug trafficking and possession, life imprisonment and death penalty are the punishments they offer.
THE LEISURE ACTIVITIES IT OFFERS
Dubai welcomes you with everything. It is up to you what you take whether desert safari, skydiving and dhow cruises. Infrastructure, health, education, residences, and recreation are some major highlights of the city, and that is enough to attract business all over the world. Apart from the architecture, what is much better about this place is how from a small city it turned out to be a business hub.
OWNERSHIP AND TRADE NAME
If you are looking to start up a local business you are required to partner up with a local company and that company will hold 51% of the stake. It requires at least two or a maximum of 50 members to run the business. If you want to have 100% ownership then, look for the free zone of UAE and you need to opt for a license. The trade name should highlight the nature of the business unless it is a branch of the already existing company.
Dubai offers plenty of space and opportunity to foreign investors. You need to search for a suitable location where you can easily connect to the right audience at right time. If you are looking for free zone then, do counts whether it will help you gain profit, will reach your audience, distance, cost, business model and requirement.
BENEFITS OFFERED BY ECONOMIC SYSTEM OF DUBAI
There are various economic advantages if you are planning to open a business in Dubai. Opening a business in Dubai offers the following benefits:
1) They have a highly developed infrastructure and transportation system.
2) They have the best telecommunication facilities.
3) They offer free enterprise system across the land.
4) It organises and hosts various exhibitions and conferences.
5) There you can find a cheap workforce available.
6) They offer inexpensive and abundant energy supply.
7) You can easily access both air and seaports. If you open a business in Dubai you can raise your overall business turn over but keep in mind some tips mentioned below.
There are certain things that are required to keep in mind before you start your business especially in Dubai.
Be prepared to do a lot of research and get a good amount of knowledge about the place. While doing research keep in mind to learn about the customer base, market patterns, SWOT analysis. Try to figure out about investments and local sponsor’s especially when you are new in the region without any track record.
You are required to have a local partner who holds 51% of the stake. If you don’t want to have a local partner and own the company 100% then, start your business in the Free zone. But be careful and don’t register in a Free zone without proper examination. You are required to have local knowledge because of the complex procedure and financial risk it involves. You are advised to consult a local lawyer before going into any legal formalities.
Don’t put your spirit down because there are many ventures that have worked, and come up with grand success. Dubai offers a wide scope and opportunities for your business venture. All you need to do is proper research and look out at the business which could be successful over the borders.
Apart from all the factors mentioned above, UAE is the 14th happiest country with the lowest crime rates in the world. Don’t worry, go ahead because many other business ventures started from this very place be it Adidas, LG, Nokia or Microsoft and not to forget to celebrate and enjoy your success.