Establishing a business in Dubai also seems appealing to entrepreneurs because of the strategic location of the city, its environment that is conducive for businesses, and the ability to reach global markets. Be it a startup or an established large corporation, from an individual to an entrepreneur you will get definite services and business structures as per your need in Dubai.
1. Business Structures in Dubai
Choosing a legal structure is the most important step when opening a company in Dubai. Here are the basic types of business setups:
This is a Dubai Mainland company that has the freedom to do business, both onshore as well as offshore in the UAE. A local sponsor or a UAE national (who will hold 51% of the shares) is obligatory for mainland companies.
- Free Zone Company: If you want to retain 100% foreign ownership, this company structure is the right type for many of those businesses that are designed to operate in the free zones within Dubai. Dubai has 30 free zones, such as Dubai Media City, Dubai International Financial Centre (DIFC), and Dubai Silicon Oasis that target different industries.
- Offshore Company: Typically, the location of offshore companies in Dubai is for international business. These companies usually do not do business in the UAE but serve just for dealing with assets, holding intellectual property, or tax optimization.
2. Advantages Of Doing Business In Dubai
100% Foreign Ownership – In many free zones and some mainland sectors, foreign investors have full ownership of the company without their need for any local partner.
Much friendlier tax regime with 0% corporate tax, 0% personal income tax, and no capital gains tax for most sectors (Apart from Oil & Gas) in Dubai. This makes it possible for companies to earn a profit.
- Dubai is strategically located in a place that it gives businesses easy access to markets in the Middle East. Africa, Europe, and Asia which means you can target a large consumer base.
- World-Class Infrastructure: Dubai offers a world-class port, airport, and telecommunications infrastructure, making it an ideal business destination.
3. Dubai Business Installation Process
The Dubai Business Setup Process consists of several steps:
- Select the Business Activity: Finalize what activity your company will do — Dubai has a large list of allowed activities across sectors.
- Pick a Legal Structure: Decide whether you need to form a mainland company, a free zone company, or an offshore company depending on your type of business.
- Register Your Trade Name: The trade name is worth registering because that is what your business identity is. It must be approved by the Department of Economic Development (DED) and abide by the UAE’s naming conventions.
- Get initial Approvals: The relevant government departments and other regulatory authorities may require early approvals depending on the proposed business.
- Secure Business Premises: Get an ideal office or warehouse space to run your business. In the case of a free zone, you will be provided with an appropriate-sized office space by the free zone authority itself.
4. Business Setup Costs
Cost of Business Setup in Dubai: It varies on business type and its legal structure & location. Typically, the main costs comprised of:
- License Fees: Businesses get a license range from AED 10,000 to AED 50,000 (commercial, professional, or industrial)
- Location: Prices for office spaces range by location. With free zones, you could rent physical offices or use flexi-desk solutions.
- Government cost: Registration charges, documentation fees, and other administrative cost of govt. And free zone authorities.
5. Business Setup for Professional Services
Business setup services in Dubai are provided by various companies that help different entrepreneurs and businesses through the process. Such services typically consist of :
- Company Formation: Offer services to help you register your business with the necessary legal authorities and obtain all the required approvals.
- In particular, visa services: Assistance with UAE residency visas for shareholders, employees & family members.
- PRO Services: Stands for Public Relations Officer (PRO) services which are document clearances, government communications, and visa processing done by the company.
- Bank Account Opening: A few facilitators now also assist in bank account opening for UAE offshore companies.
- Information consultation: professional advice on enterprise legal structure. Business strategy, and regulatory compliance to facilitate the setting up of an operating company.
Conclusion
The emerging business atmosphere in Dubai is one of the most competitive and fastest among others on earth. Which makes it a perfect place for entrepreneurs and new businesses. Availing of the services for business setup is a ticket to getting started with building your venture, trading within Dubai. Enjoying company formation benefits, and having the right infrastructure for taking advantage of the booming market. Dubai has advantages for the setting up of business either in the mainland. A free zone, or an offshore one; therefore it provides a pool of opportunities.
