Starting a business in the UAE should not take you more than a week once you’ve sorted all your legal procedures. International exposure and an investor-friendly government are just two of the factors that motivate entrepreneurs to start a business in Dubai.
Startups in Dubai also get perks on investments and tax advantages when compared to other countries.
There are a lot of reasons why thousands of entrepreneurs the world over flock to the UAE and Dubai to do business. Firstly, The UAE still proudly boasts zero tax on both personal and corporate incomes. The only significant tax to be aware of here in the Emirates is VAT introduced in January 2018 which stands at a flat 5%.
Secondly, Dubai is home to the second largest economy in the Arab world, with a GDP of around AED 692bn, behind only Saudi Arabia. And it is just as diverse as it large, with numerous industries from healthcare and hospitality to technology and trade in the ascendance in this part of the world. Finally, The UAE provides a lot of startup support for growing businesses. The Emirates is home to many startup incubators and funding initiatives designed to accelerate business growth. The AED 2bn Mohammed Bin Rashid Innovation Fund, for instance, helps UAE companies finance projects and offers expert guidance and support to turn business ideas into reality.
There are major considerations to be made by those thinking of starting a business in Dubai.
Know What Type Of Business You’ll Like to venture into
When you decide to do business in Dubai, you need to know that there are certain limitations. Not all business activities are allowed in the UAE! Various consents are required before you start your business in Dubai. Thus, the first thing to do business is to decide whether your business fits in as per the Dubai standards.
Location Is Important
Dubai offers mainland business setups, Free zone company formations, and offshore business establishments. Opting for the right jurisdiction depends on the business activity and the nature of the business you would like to conduct. Take into account that if you want to own 100% of your company and do not want to have a local partner, the only possibility is to start a business in the Free Zone. However, if your business requires to be near the city, it will probably go bankrupt quickly in the Free Zone as it is quite a distance.
Partnership With a UAE National
To start a business in the Dubai mainland, it is mandatory to partner with a UAE national. The challenge is to find a trustworthy and reliable UAE business partner. It is stated that the UAE local partner will hold 51% of partnership. In terms of freezone, a company would require a local service agent, who would work for a nominal fee. It is best to get into an agreement with a silent partner- this will assure security and complete control on your business.
Obtaining A Business Licence
Whether you’re setting up in a free zone or the mainland, you’ll require a few standard documents such as a completed application form, shareholder passport copies. Some free zones may also require you to provide a business plan. A payment voucher or transaction number will then be provided by the DED on submission of the all the listed documents. The final payment will to be made to collect the business trade license. Once you collect your trade license, you become a full-fledged business entity.
Consulting with WorkAtDubai
Before starting a business, it’s important to have a stable source of income. Starting out with a job might be the first step. This is why Workatdubai is here! Workatdubai is a recruitment consultancy that is helping to bridge the gap between semi to highly skilled individuals in Africa and job opportunities in Dubai by helping you go through the formerly odious task of getting through to the companies that need the skills you have and book for a remote interview allowing you save time and money in an effort to advance your career. We provide a number of services including – resume review, job application, visa services, relocation services and more! Visit www.workatdubai.com for a live chat!