The business environment in Dubai is open to foreigners, and many of them do. More than 80% of the local populace consists of expats, with many running their own businesses. Investing and doing business in Dubai highly encourages. In the emirate, many company formation experts and setup agents exist to help foreign entrepreneurs through the licensing, visa, and incorporation process.
Dubai actively cultivates business owners and capitalists from overseas. Several business formation specialists, as well as business setup representatives, are located in the emirate, which assists international entrepreneurs with procedures regarding visas, permits, and also business establishment.
The business community in Dubai hails from all corners of the globe. International investors and businesspeople go to the emirate for its prime business environment year over year, growing at a faster rate.
Emirates’ Ministry of Economy has announced a new amendment to the UAE’s Commercial Companies Law, allowing foreign entrepreneurs and investors to establish and fully own local firms. Earlier this year, the UAE government amended the law allowing foreigners to own 100 percent of a company.
As a result of the changes, Abu Dhabi will further boost its appeal as an investment, entrepreneurial, and talent-friendly destination, strengthening its position as an international economic hub and promoting investment flow in key sectors.
Is Dubai a good place to invest?
Dubai has ended restrictions on foreigners starting businesses there. Many advantages that offered by it, including:
- As an international business centre, Dubai does not charge corporate tax, withholding tax, VAT, import/export tax, or capital gains tax;
- UAE has signed 66 international double taxation agreements with countries such as China, the US, and the majority of EU member countries.
- Due to the lack of exchange controls, foreigners can easily gain access to the local currency.
- A multicultural environment will also be available to foreigners wishing to move to Dubai. Dubai is home to a large number of foreign nationals. The city is therefore always in the know when it comes to new trends and developments. For foodies who want to sample different cuisines, it is also a paradise.
Foreigners’ must-knows when starting a business in Dubai
Setting up a company in Dubai
It is important to decide what type of company is suitable for your business before forming one in Dubai. Dubai’s free zones are the best places to start your company. Companies that operate in Dubai-free zones can own by foreign investors at 100%.
Generally, foreigners cannot own more than 49% of a Dubai limited liability company (Dubai LLC). The remaining 51% of shares will be owned by a UAE national. Government authorities will allow foreign ownership of 100% of an LLC only in exceptional cases. You are more likely to get approval for your LLC if you register it in a free zone.
Free zones in Dubai
The Dubai economy is composed of more than 30 free industrial zones devoted to specific industries. Owning 100% of your business is the benefit of a free zone. Profits and revenues from Dubai free zones can also bring back to their home countries.
A number of other benefits are also provided by Dubai’s free zones
- Process of incorporation is simple;
- Recruitment restrictions are fewer;
- A tax-free environment for imports and exports;
- The provision of top-notch infrastructure;
- Find low-cost utilities.
It is possible for foreign investors to set up a free zone LLC or branch company. Free zone establishments (FZEs) with a single shareholder can register with the government. Free Zone Companies (FZC) are registered by companies with between two and five shareholders.
FZEs are not allowed in all free zones. In Dubai, at least two shareholders require the most free zones. Before joining a free zone, please review its specific requirements.
Minimum capital required in all Dubai-free zones. Free zones and company structures determine the amount that must be paid-up capital. The capital amount varies between $14 and $300,000. Additionally, it recommended raising US$200,000 as capital.
When forming a free zone company, customers are also an important factor. It does not permit free zone companies to do business with residents of the United Arab Emirates.
The minimum requirement for doing business within the UAE is to employ a service agent. In addition to selling and distributing goods, he will also be the source of service.
Getting your company registered in Dubai
Dubai’s government requires the following items in order to register a company in one of its free zones:
- An in-depth business plan. An effective business plan will include:
- A description of the planned business activity;
- Employee composition and number;
- The amount invested;
- Information about suppliers
- Customer expectations.
- Lease agreement
- The deposit receipt for the share capital.
Upon incorporation, the required paid-up capital must deposit into the corporate bank account of a Dubai company. Your company registration application will review by the Government authorities. You must apply for licenses and permits after the Government approves your plan.
Depending on your business activities, you will require a different type of license. Furthermore, the registration of your company is complete when you receive the licenses. Your business should get started in Dubai now.
I hope this article will be helpful for you as you start a business in Dubai. You will not experience any difficulties if you follow the instructions in this article.