For someone outside of the United Arab Emirates, planning to set up a business in a city like Dubai can be daunting and complex, but the fact is that the United Arab Emirates is keen on attracting investors and they can even help you to start a business in Dubai.
That’s why over the past year more than 20,000 new businesses have been set up in Dubai, among which there are a large number of foreign entrepreneurs.
In fact, between 80% and 90% of the UAE’s workforce has foreign nationalities and is not native to the region.
If you are planning to start a business in Dubai, you can find any further information you need in this area in this article.
Benefits of starting a business in Dubai
In what follows, you will see some of the reasons why UAE has been able to bring entrepreneurs from around the world to start a business in Dubai.
Low tax – The United Arab Emirates is still proud to apply zero tax on personal and legal revenues. The only tax you should be aware of in UAE is the value added tax that has been fixed at 5% since January 2018.
Flexible economy – UAE hosts the second-largest economy after Saudi Arabia in the Arab world, with a gross domestic product of about 692 billion AED.
High quality of life – The United Arab Emirates is ranked 23th in the list of the best 2017 countries, with little distance from Spain and Ireland, and before Portugal and Greece. The cost of living in Dubai is reasonable.
Supporting Start-ups – UAE is home to many companies that support start-ups and seek ideas, and this will expand the business in the area.
For example, Mohammad bin Rashid, a 2 billion-dollar company, will assist in the economic projects of the Emirates companies and will provide expert advice and try to make the idea a reality.
How to start a business in Dubai?
The business startup process in Dubai is very simple. You can register your business in Dubai by going through six steps.
Choose your type of activity
The first thing you need to do to start a business in Dubai is to choose the type of activity you have. Depending on what kind of activity you choose, it determines where your business will be set up.
The Dubai Department of Economic Development has listed more than 2,000 activities that your business can be one of them.
Choose the location
At this point you can choose whether you want to be in the main area or base your activity in a free zone.
If you decide to start your business in the free zone you will then benefit from,
- 0% Personal and Business tax
- 100% company ownership
- 100% return of investment and profit
- No currency restrictions
- And 100% exemption from import and export taxes
But if you decide to work on the local UAE market, you have to start with a local partner that includes costs.
On the other hand, if you choose to work in the main area, you are free to work directly on the local market.
But if your business activity is in the category of professional services, you can not own 100% of your business as a foreign entrepreneur.
Again, to work in this situation, you need a local partner who holds 51% of your business’s stock, but they have no right to make decisions for the company, and they will not receive any profit from the work.
Choose a name for the business
Along with the challenges of choosing a business name, such as being unique and memorable, the name you choose should not be in violation of the UAE standards.
The rules of the UAE are very complete in this regard, and you can simply adapt your choice.
In general, your business name should not be a message of violence, religious beliefs or religious organizations.
If you also want to use your personal information, such as the last name in the company name, you should bring it along with your first name.
Request a business permit
It does not matter if you want to start your business in the mainland or in the free zones, the documents you need to obtain permission are roughly the same.
- Complete the application form
- A copy of the shareholders’ passport
Opening a bank account
With the business permit, you are now allowed to open a legal bank account in the UAE. You can use the branches of international banks, local banks and Islamic banks in the United Arab Emirates to do this.
The last step to start a business in Dubai is to carry out the immigration process and obtain the visa. Getting the visa is easy for you and your companions.
You can get a visa in 4 steps,
- Entrance permission
- Determine the status
- Health check test
Then, registration of the UAE ID and visa is done for you.
If you are looking for a way to make your international payments, you can use PayPax international payment services.