Establishing a business in Dubai or any other location requires planning, studying the market, conceptualizing, and launching a product or service that meets the business objectives. Those entering a new market, especially Middle Eastern or Asiatic regions, would need assistance from business setup companies in Dubai or UAE, such as Beacon Al Manal LLC, to navigate the different legalities and economic regimes. Working with experienced consultants makes becoming an established company in the UAE easier and faster. This guide breaks down the essentials for laying the foundation of a business set up in Dubai.
Why Now is the Best Time for Business Set Up in Dubai, UAE?
The United Arab Emirates and Saudi Arabia are among the Middle East's most stable, growing economies. For instance, UAE central bank forecasted a 6% GDP growth in 2022. Moreover, the country's investor-friendly environment, ease-of-doing business, and lower tax policies make it an attractive destination for entrepreneurs, IT companies, and global corporations. These statistics and the business-friendly regime have attracted investors and companies from worldwide. Those new to the country will find a simple and speedy process with various incentives for business set up in Dubai.
For investors, Dubai is one of the Middle East's most prosperous and welcoming places. Its proximity to Asia and other nations and ease of travel make it a prime location for international business. Moreover, Dubai is home to many free zones for companies looking to expand their operations. Since then, Dubai has become an attractive destination for small businesses and large global conglomerates.
Although the business registration, government policies, and capital requirements of setting up a company in Dubai may seem overwhelming initially, entrepreneurs will find that doing so is relatively easy and inexpensive with the correct guidance and resources. Examples include Beacon Al Manal LLC, which has assisted a wide variety of businesses in selecting an appropriate site for their operations and incorporating entities to take advantage of favorable tax and regulatory environments.
Free Trade Zones (FTZs) in Dubai are designated areas where companies can operate with certain tax and customs benefits. These zones are designed to encourage foreign investment and promote trade by offering companies exemptions from specific tariffs and taxes, such as Value Added Tax (VAT), Income Tax, Corporate Tax, and Customs.
According to business setup Dubai consultants, Beacon Al Manal LLC, companies operating within an FTZ typically retain 100% ownership of their businesses. However, foreign investors may require a local partner in other parts of Dubai. Some examples of Free Trade Zones in Dubai include Dubai Silicon Oasis, Dubai Airport Free Zone, and Dubai World Central.
Most business setup Dubai services recommend considering these factors, mentioned below.
Select a Business Activity for Forming a Company in the Dubai Free Zones
Specific business activities like media, banking & finance, IT, and others can help determine Dubai's best free trade zone locations. For example, those planning to launch a media company would benefit from setting up their business headquarters in Dubai Media City. Similarly, fin-tech and financial businesses can choose Dubai International Financial Centre (DIFC) for business setup in Dubai. In addition, there are about thirty FZs in Dubai, so choosing a business activity that meets the requirements is reasonably achievable.
Choosing the proper company structure or legal form for setting up a business in Dubai is vital for several reasons. For instance, different company structures and legal arrangements have different tax implications. For example, a sole proprietorship may be subject to higher taxes than a limited liability company. Therefore, a business can minimize its tax liability and maximize profits by choosing the right structure. In addition, the company structure also determines the ownership requirements. For example, a foreign investor may be required to have a local partner to operate certain types of businesses, whereas other structures may allow for 100% foreign ownership.
By choosing the right company structure or legal form, a business can ensure that it complies with local laws and regulations while minimizing its tax and liability exposure and maximizing flexibility.
Complete Registration and Incorporation Paperwork for Forming a Business in Dubai
After finalizing the business activity and legal form, the interested parties must complete registration and submit it to the relevant government authorities. A business plan or Non-Objection Certificate (NOC) from the entity's present sponsor certifying that it is permitted to establish a second business in the UAE may be necessary for entry into certain free zones. The paperwork may be the most time-consuming part of the process, but it need not be too onerous if done with assistance from a professional. Beacon Al Manal LLC has helped its 400+ clients get their business licenses in as little as one week, thanks to their knowledgeable staff of business consultants.
Opening a corporate bank account with one of Dubai's many local or international commercial banks is the next step after obtaining a business license. There are numerous banking institutions in Dubai, from global giants like HSBC and Citibank to regional banks like Commercial Bank of Dubai and Emirates NBD. Business setup partners like Beacon Al Manal LLC can facilitate meetings between the business owner and multiple financial institutions so they can compare their options and make informed decisions.
With that, we arrive at the last stage of opening a business in Dubai. Business owners can often file visa applications for their employees and their family in many free zones; the free zone determines the precise number where the business is located. Therefore, people applying for a visa for a family member (spouse, child, maid, or driver) should consult an expert to ensure they fit all requirements. Business consultant firms like Beacon Al Manal LLC simplify the visa application process and assist in getting faster approval for receiving visas for families and employees.
Forming a company in Dubai is not only easy because of the conducive environment provided by the free zones, but it can also be done in a little over a week with the help of competent professionals. Beacon Al Manal LLC has helped several companies and entrepreneurs with business set up in Dubai and other locations in UAE by providing: expert consultation, business licensing, visa processing, bank account opening, and receiving the tax benefits offered in the Dubai free trade zones.