3 Key Steps For Setting Up A Business In Dubai

Imagine a safe and dynamic workplace where there is no taxation on income. This may seem like a fantasy, but in Dubai, it is the reality of generations.

As nations in the East struggle with trade disruptions and dramatically higher fuel prices, high-net-worth individuals (HNWIs) are moving to countries that are more secure and have flexibility in immigration and business laws. Based on factors such as excellent opportunities for professional growth, security, and ease of moving in, it is no surprise that the United Arab Emirates (UAE) is at the top of those countries with an inflow of net positive HNWIs. Expats make up 8.92 million of the 10.08 million who reside in the UAE, which shows that the UAE remains a top location for investors from abroad.

The UAE is making various legislative changes to its legal system to draw foreign investors. For example, the UAE has launched the five-year Green Visa and the 10-year Golden Visa, allowing foreigners to sponsor residence permits independently instead of being supported by their employers. In the wake of the launch of brand new programs for freelancers and remote workers and the ease of restrictions for Covid-19, many people have moved to Dubai — the largest city in the UAE, over the, ended few years. The move to Dubai is attractive to foreigners as the process is simple, reasonably affordable, and offers a zero-income tax structure.

As an owner of a company in Dubai for the past ten years, I’ve learned a lot of tips and tricks for successfully creating a business in this city. Based on my knowledge, I have listed three essential steps to set up an enterprise in the business center, that is, the Middle East. Middle East.

Step 1: Select an activity for business.

It is the first thing to do: select the most appropriate business option for your business. The best way to determine what business is best for your company is to focus on your motivations and passions before conducting market research to determine if the particular business is appropriate for your target market.

The UAE is among the top four nations in the Middle-East & North-Africa (MENA) region with the most influential economics. Dubai provides a host of industries in that foreign investors can thrive. In 2021 the UAE was the only country to hold the record of being the 4th-highest Gross Domestic Product (GDP) in the MENA region. The most lucrative industries thriving in Dubai include e-commerce, real estate, healthcare and wellness, and construction services. With the growing startup scene in Dubai, it’s clear that people living in the contemporary city are willing to explore new businesses and ideas.

Step 2 : Select the jurisdiction of your business.

Investors can choose between creating their businesses in different countries in Dubai. Awareness of the distinctions between the mainland and free zone business is essential. There are numerous advantages and disadvantages to every jurisdiction.

On the other hand, starting an enterprise within one of these free zones may be advantageous if you’re seeking a tax benefit of the 0% personal and corporate tax and benefit from ownership of 100% foreign. The downside of an organization in a free zone is that you must work with an existing mainland business to trade directly with this UAE market.

However, having an enterprise on the mainland in Dubai permits the direct trade of the UAE market, but there are restrictions on foreign ownership. Specific business licenses and operations require a local partner to hold 51 percent of the company’s shares.

There are more than 30 free zones within Dubai, and they generally serve businesses within specific industries. For instance, Dubai International Financial Center (DIFC) is one of them. Dubai International Financial Center (DIFC) can be described as a free financial zone in Dubai that primarily caters to companies with professional expertise that deal in financial services, and there is the Dubai Internet City (DIC) is an area that caters to tech-related companies within the region. If you’re planning to establish an enterprise in a free zone in Dubai, it is essential to pick a free area suitable for your industry and business needs.

Step 3. Make an application for the approvals needed.

You have to apply to get the necessary approvals to run your company. If you’re establishing an offshore company in Dubai, you must apply for permission from the Dubai Department of Economy and Tourism (DET) (formerly called the Department of Economic Development (DED). If you’re establishing your company in a non-free zone, you must obtain your permit from the relevant authority responsible.

After you have obtained an official business permit, it is time to apply for a bank account. One prerequisite to opening an account at a bank is an active UAE residence visa. So, the first part of the process is to submit the UAE residency visa and your Emirates ID to satisfy your financial and business requirements.

Based on the nature of your business depending on your business, you might need to seek additional approvals and licenses. For instance, if, for example, you plan to set up an organization that will carry out financial services within the DIFC and you want to do so, you need not just get an official commercial license but additionally a Financial Services Permission (FSP) from the Dubai Financial Services Authority which is the manager for financial services of the DIFC.

If you take these three steps I’ve gained from 12 years of experience as a professional in Dubai, you’ll be well to opening your business in this international hub. These steps will give you access to the vast market in the UAE and allow you to expand your company into other countries within the MENA region.

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Samatha Vale
Samatha a senior writer for HC's entertainment team. She is an entreprenuer, mother and an excellent writer. She's also an avid reader, music enthusiast and all around inquisitive person - which is just a nice way of saying she's nosy.

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