The UAE is one of the top destinations for business. Its cultural richness, iconic heritage, and breathtaking skyline have made a special space in everyone’s heart. Not just entrepreneurs, but tourists also find themselves in awe of its beauty. In recent years, there has been a significant increase in the number of business setup in UAE, not just by domestic entrepreneurs but also by many crossing borders to make the UAE their destination. This can be attributed to the forward-thinking vision that the government of the Emirates holds and actively pursues. For the next ten years, the focus of the UAE is clear: to enhance its position as an attractive and influential economic hub.
Many entrepreneurs dream of coming to the UAE to start a business in various sectors. If you are someone looking to start a venture abroad, the UAE could be the perfect spot for you. How? You will find out in this article. Let’s explore the top benefits the UAE offers to entrepreneurs and take a quick look at the process of business setup in Dubai as well.
Advantages of business setup in UAE
Here are the top 11 benefits of business setup in UAE:
1. Fast and Simple Setup:
The process of starting a business has been made very easy by the UAE government. There are very few administrative hurdles, and the integration of tech facilities, such as e-channels, has further facilitated the process. Business license applications, visa applications, and more can be done easily online. Additionally, there are many expert setup consultants who can take the burden of paperwork and documentation off your shoulders. Dubiz Business Setup is one such name with a team of experts who can guide you with company formation in Dubai and across the UAE.
2. Diverse Business Opportunities:
The UAE’s economy is rich and diverse, with many thriving industries. The Department of Economic Development (DED) allows more than 2,000 business activities that entrepreneurs can pursue. These activities span various sectors, including tourism, finance, healthcare, scientific research, IT, technology, logistics, construction, manufacturing, and much more. Entrepreneurs get the opportunity to choose from thriving and emerging industries and pursue the activities that align with their interests.
3. Huge Tax Benefits:
The UAE’s tax environment is one of the most appealing and attractive benefits for starting a business here. There is almost no personal income tax, and corporate tax rates are extremely low. There is a minimum earnings threshold for corporate tax, and businesses earning below that threshold are exempt. Additionally, in free zones, there are numerous perks, such as exemptions on customs duties. Overall, the tax burden on entrepreneurs is very minimal, allowing them to retain more of the profits they generate in the country.
4. Strong Logistics and Infrastructure:
The UAE is a nation of shining skyscrapers and modern infrastructure. Businesses can find state-of-the-art facilities for setting up offices, warehouses, and more. Modern roads, ports, airports, and metro systems enhance connectivity and logistics, enabling easy movement of goods and personnel. The telecommunications infrastructure is also advanced, with high-speed internet and excellent communication networks ensuring seamlessoperations for various types of business setup in UAE.
5. Strategic Location:
The UAE’s strategic geographic location makes it an ideal spot for businesses, as it connects them to many international markets, including European, Asian, and African markets. Companies can grow not just locally in the UAE but also reach billions of customers globally. With well-developed airports and seaports, global connections and the movement of goods become even easier. Import-export and tourism-related businesses can truly flourish here.
6. Advanced Free Zones:
Free zones are special economic zones in the UAE where businesses can be set up. They offer unmatched benefits like 100% foreign ownership, advanced facilities, faster licensing, low-cost business setup, and much more. Free zones specialize in specific industries, helping businesses in those sectors thrive. There are more than 40 free zones in the UAE, with over 30 in Dubai alone. Some famous options include Jebel Ali Free Zone, RAKEZ Free Zone, IFZA, Dubai Media City, and SHAMS.
However, remember that free zone businesses cannot directly operate in the mainland UAE. For those looking to do business focused on free zones and international trade, they can be a great option.
7. Strong Business Community:
Since the UAE is one of the world’s greatest commercial trade hubs, you’ll find big brand names and multinational players from almost all industries making it big here. Businesses can connect with these giants and become part of a thriving business network. This not only helps them establish their brand presence but also gives access to a great client base.
8. High Quality of Life:
The UAE is a wealthy nation, with Dubai standing out as one of the richest cities in the Middle East. The per capita income is very high, and people enjoy a luxurious lifestyle. Such a population looks for various goods and services, spends generously, and creates immense opportunities for businesses. Besides that, the UAE is a melting pot of cultures, with people from different religions, cultures, communities, and nations residing here. Entrepreneurs themselves can build a quality life while serving such a diverse and vibrant population.
9. Technological Advancements:
The UAE sets benchmarks for innovation and digital development. In fact, it is on track to become the world’s most advanced digital hub. From e-commerce to artificial intelligence, healthcare to fintech, technology has become an integral part of every industry here. Business setup in UAE benefit from a tech-savvy environment that fosters growth and innovation.
10. Pro-Business Government:
The UAE government is extremely supportive and welcoming to foreign investors and talent. They leave no stone unturned when it comes to providing incentives and implementing pro-business policies that make it easy to settle here. Continuous developments in rules and regulations ensure that business setup in UAE remain simple and hassle-free, fostering a business-friendly environment.
11. Access To Top Talent:
The UAE is a melting pot of cultures and people, attracting talented professionals from more than 200 nationalities worldwide. For businesses, this means access to top-tier talent and a diverse pool of skilled professionals. Whether you need specialized expertise or a mix of skills, the UAE provides the ideal workforce for your business needs.
Process to start a business in UAE
As advantageous as it is to start a business in Dubai, it is also incredibly easy. Here are the quick steps for business setup in UAE:
- Select Business Operations:
Start by deciding the business activities you will carry out. There are more than 2,000 activities for which you can get a license in Dubai. The choice will depend on your personal interests and goals.
- Choose Jurisdiction:
You can start your business in a Freezone, Mainland, or Offshore. Each jurisdiction has its own advantages. For example, in a Freezone, you enjoy 100% foreign ownership, whereas in the Mainland, you get the opportunity to operate across the entire UAE. Offshore is a good choice for accessing global markets.
- Select Legal Structure:
Next, you must decide the legal form of your company. You can start a sole proprietorship, a partnership firm, a company, an LLC, or even a branch of a foreign company. Make sure to consider the operational flexibility and degree of control you desire while selecting your structure.
- Register Trade Name:
You must then select a lawful yet modern name for your business. You will also need to get it registered with the DED or the relevant Freezone authority. Make sure to follow the UAE naming conventions properly while selecting a name.
- Get Initial Approval:
For your business setup in Dubai or UAE, you must get an NOC (No Objection Certificate) from the DED or the relevant Freezone authority. Only then can you proceed further. This is part of the pre-approval process and is required for all types of businesses.
- Secure Office Space:
In the UAE, you have multiple office space options. You can purchase a property, rent it out, or even opt for shared workplaces. In some cases, you can even operate virtually without needing any office space. It depends on the nature of your business and the kind of license you hold.
- Get Additional Approvals:
For some business operations, you may need to seek additional permissions from government bodies. For example, in the case of starting a healthcare business, you will need approval from the Dubai Healthcare Authority (DHA).
- License application:
Once you have all the approvals for your business setup in UAE in hand, you can apply for the business license that you need. It can be a commercial license, a professional license, or an industrial license, depending on the activity you have chosen. For Mainland business setup, you need to approach the DED, and in the case of a Freezone, your license will be issued by the relevant Freezone authority. As part of the application process, you will need to fill out and submit an application form along with documents like your passport, passport photo, business plan, bank reference, Ejari contract, articles of incorporation, and so on. Next, you must pay the fees and submit the application. Once your application is reviewed and approved by the authority, your business license will be issued.
- Visa and bank account:
As a foreign entrepreneur, you would need a visa to enter, stay and work in the nation legally. You may also get visas for your family and staff. Along with with that, you would need to open a corporate bank account to keep track of your business finances.
Business setup in UAE made simple
Business setup in Dubai is a promising endeavor. Many entrepreneurs have settled here for good, and many more keep coming. The advantages that the UAE offers for business operations make it one of the most sought-after destinations worldwide. On top of that, the government continually supports businesses and professionals.
If you are someone looking to start a business in Dubai, rest assured that it is a great option. Though the process is simple to understand, in its implementation, one may encounter hurdles such as paperwork and knowing which government department to approach for approvals.
We recommend consulting Dubiz Business Setup. It can be your all-in-one solution for setting up in the UAE and Dubai. They have a multi-field team of experts with years of experience in helping entrepreneurs set up. From company registration, licensing, visa processing, bank accounts, trademark registration, VAT, and accounting to outsourcing, digital marketing, and more, they can assist you with everything at an affordable cost. Get a free consultation with them today.
