Dubai is an inviting and unrivaled city where businesses are always booming. The city is home to some of the largest business houses in the world, with their investment crossing billions of dollars.
Unfortunately, there are many misconceptions about the procedures and opportunities involved in opening a company in Dubai. This creates confusion among the business investors and business owners to make the perfect call for their business.
It is crucial to believe what you hear and read, but it is even more important to confirm the facts before you leap, especially if you are a first-time entrepreneur.
The fact is, you need capital investments to start a business in any country, but when you start counting how much it will cost to set up a company in Europe (with its huge taxes), Russia (with its long approvals), and the United Arab Emirates (with its preferences for any business type), you realize that business heaven exists and it’s in the UAE. Thanks to the diversification of the economy, starting a business in the Dubai is much easier and cheaper than, for example, in Europe.
For example, here are some typical numbers for three popular niches:
You can set up your business quickly and may not need excessive capital to open a company in Dubai, which distinguishes the UAE from Europe or the CIS region. At the same time, there are no illegal fees involved and the UAE is a tax paradise for most business types. There is simply no income tax, VAT is as low as 5% (and not all areas of activity are subject to it), there is no corruption and bureaucracy.
This myth says that it’s much harder and takes longer for foreigners to set up a business in Dubai than for locals. Let’s have a look at the numbers again. 95% of all companies in the UAE are SMEs, according to official statistics. The second fact is that 89% of the population are foreigners (non-UAE citizens). So, if you compare facts, you’ll understand that the majority of companies in the country are founded by foreigners who are engaged in SME sector.
To break the myth about complicated procedures you should be aware that there are 3 simple, basic steps involved in company formation in Dubai:
Local legislation reliably protects foreign investors and simplifies their everyday activities because foreign investment for the UAE economy is so very welcomed. To set up a business in Dubai you need from 1 to 4 weeks, a properly prepared set of documents, and knowledge of procedures, or you can hire experienced business setup consultants in Dubai to do it all for you.
Many foreigners think that in order to obtain a business license in Dubai, you need to partner with the UAE citizens. But what is not yet common knowledge is there exist over 60 Free Zones in the UAE where you can register your company and enjoy 100% ownership!
A “Free Zone” is considered the simplest and most advantageous option for a foreigner. And despite common misconceptions, Free Trade Zones are very often located right in the city center and not in the desert. It is also possible to obtain a professional license: prove that you are a professional in your field and you will also own 100% of the company.
Dubai is one of the most liberal cities in the Middle East region and, hence, a popular destination for businesswomen from all across the globe. There is a great opportunity for career advancement and setting up a business combined with the perks of tax-free income, making the prospect of working in Dubai more appealing, even for women.
Here are some interesting facts:
Women here have been in senior positions in international corporations and major government posts for a long time. Women are starting businesses, driving cars, and getting an education, as the UAE is ranked as a leading country in gender equality in the region, according to the World Economic Forum’s 2018 Global Gender Gap report.
In the UAE, you will work with people of hundreds of nationalities and religious beliefs and everyone wants to find a common language, so English has become that language.
In Dubai, for example you will always be able to get along if you have at least a basic command of English: all street and indoor signs and official documents have been translated into English, and newspapers, websites, radio, and television largely communicate in English. When you make a call to any company, you will be answered in English in 99% of cases.
Yes, the laws in the UAE may seem strict for newcomers, but they are enforced for the good of businesses and people. After all, how else can you make over 200 nationalities live in peace, especially when such huge amounts of money are involved?
Dubai is one of the safest places in the world just because the law works so well. Here, you can walk around wearing diamonds at 3:00 a.m. and no one will disturb you. You can leave your iPhone on the bench and no one will steal it. Dubai’s rule: as long as you respect the law, you live in peace and wealth.
Thus, it looks like the myths about the United Arab Emirates are being created and held by people who have never been there or simply do not know the facts. And the facts prove that it is 100% easier to start a business with one of the competent business consulting companies in Dubai than in Europe, and everything can be done remotely.
Setting up your own business has never been easier. DMC takes care of it all so you can focus on what matters – building your business. For more information about company formation in the UAE mainland or free zones, please call us on +971-4-262 40 23