Why Start a Business in Dubai?
It is said that we spend our most productive years in life working hard for somebody else’s business. And by the time we realize that we want to do something of our own, we are too burnt out of working and are resistant to change.
Company formation in UAE: The time to become your own boss is now. In this blog, we list down 10 reasons to start your own business in the heart of the middle east- The UAE
The Burgeoning Economy:
The UAE has the most liberal trade regime in the Gulf. For the last 40 years, it has been an open economy with high per capita income and high annual trade surplus. Companies from all over the world are shifting base to UAE and opening offshore companies here. Today the UAE is home to many startups and multi-million dollar conglomerates.
The emirates state is wealthy and offers stable financial situations to all companies which have led to a huge inflow of foreign capital in this region. Thus making the economy even more strong.
The UAE government is looking is to drive the economy through foreign investments and to help achieve that, they have revised their legal framework for foreign investors who are willing to start a business. Except for criminal law, there are a completely different set of rules and regulations for foreign nationals.
The red tape is minimal and all the legal procedures are fast-tracked. There is minimal to no paperwork required and licensing & registration procedure is very simple.
Infrastructure and amenities:
The government of UAE has left no stone unturned in ensuring the foreign investors face absolutely no troubles in running their businesses. This resolve has translated into world class infrastructure and amenities in terms of business parks, office spaces, warehousing, transportation, connectivity, and utilities.
It is no secret that works both skilled and unskilled flock to UAE in search of work from all over the world, especially India and other southeastern nations. It is due to this fact that business owners need not to have to worry about manpower to run their businesses in the UAE. Since the taxes are low and wages are high, it is a very favorable environment for both the employers and the employees. Tax exemptions:
One of the major hassles of opening a business in a foreign territory is developing the understanding of their tax laws and maneuvering your business in such a way that you have minimum taxes to manage.
The Emirates offers various kinds of business ownership patterns and tax categories. One among them stands out to be the free zones with the feature of 100% tax exemptions. There is 0% corporate and income tax, 30 % tax rebate on international film and TV production spend. This means you can keep your business profits without having to pay any business/income tax to the government. Just make sure you register your companies under free zones umbrella.
All over Emirates, there are multiple Freezones such as Dubai free zone, Abu Dhabi Freezone, Ajman free zone amongst a free. Each of them has different plus points. You must identify which location suits your business proposition best and then zero down one. Business ownership:
Under typical foreign direct investment laws, the foreign business investment has only up to 49% of business share while the local partner gets to have 51%. Under different company formation in UAE, foreign business owners can enjoy 100% business ownership. Global position: The UAE Business environment is ranked as one of the most favorable in the entire GCC region. According to a World bank’s 2015 ‘Doing Business’ report, UAE has ranked at 26th ahead of other GCC nations like Saudi(49th)(i). In fact, UAE is ahead of European nations as well. The Netherlands ranks at 27th, France and Turkey are at 31st and 55th This speaks volumes about the favorable conditions for doing business in the land. Local culture and heritage:
Although Arabic is an official language; English is the most widely spoken language in business rooms. The company is hospitable and is ranked a safe place to work.
You get a chance to enjoy the delectable local cuisine and Arabic culture in forms of art, music, and architecture. Strong healthcare and education policy:
Did you know it is mandatory for all UAE residents to have health insurance? Famous tertiary and multi-specialty hospital and healthcare institutions like Cleveland clinic are present here. The literacy rate is a staggering 92.5% in the UAE population. Also, there is well known international universities setup here like INSEAD, MIT, and NYU.Strategic location:
It is said that the most important rule of the real estate industry is Location… Location…Location. The same holds true for another kind of business setup as well.
UAE is very strategically located between three continents, Europe, Asia, and Africa. There are around 1000 weekly flights to countries worldwide. There is easy access to the GCC and entire Middle East market.
On one hand is China and India which is a source of raw materials and significant trading opportunities. On the other side of UAE is the European Union which is a major trade partner.
Before we conclude, we‘ll do a bonus section on major UAE cities which you can eye for business setup.
Dubai: It is the most cosmopolitan city in all of the UAE, tourists from all over the world visit Dubai for its shopping experience.Abu Dhabi: Home to the richest, it is also the most planned and organized business center in UAE, Sharjah: Sharjah airport international free zone is a premier one which attracts foreign investors.Jebel Ali: This free zone is on the western side of Dubai. Readymade facilities like business parks, office spaces are available for the customers. Fujairah: The Fujairah free zone is an upcoming one and is attracting shipping and transport companies from all over the world.
So, are you excited to start up your own venture in the UAE? If yes, then prop up your business idea and get in touch with Virtuoso an international business consultant in UAE who has guided thousands of business owners for the successful business set up in this region. With our team’s international business acumen and local Middle Eastern exposure, you can rest assured that your business setup is taken care of.
Have more questions on how to go about?