Dubai does not need any introduction to people interested in global economics and businesses. The city has become a melting pot for business investments in the last few years, asinvestors from different parts of the world come to Dubai for business setup. There are a few reasons why Dubai has become a popular destination for investors. Some of those reasons are ease of doing business, top-class infrastructure, lucrative tax exemptions, free zones, and many more. Business owners and investors should keep a few important things in mind for a new business setup in Dubai. A business setup in Dubai will be a seamless affair if you keep the following tips in mind.
Choose the Right Types of Company
The first step to start a business is forming a company, and you need to find the type that suits your business the most. The business law of the UAE recognises different kinds of company formations. Find some of them in the following section.
- Sole Proprietorship: As the name suggests, a sole proprietorship is a single ownership company. If you are the sole owner of the company, you should register it under sole proprietorship under the business laws in the UAE.
- Joint Venture: When there are two or more owners for a company, the business should be registered under the joint venture. The partners who register their names will share the profit and loss according to their shares.
- General Partnership: The general partnership is similar to the joint venture. The only difference is that the company owners agree with sharing the profit and loss equally under such contracts.
- Public and Private Shareholding: In public shareholding companies, the company owner’s liability is limited by the share he holds. The private shareholding company does sell stocks to the public.
If you are looking for abusiness setup in UAE, these are some ideas that will help. Knowing the rules of company formation is essential to start a business in Dubai, Abu Dhabi, and other regions of the UAE.
Select the Right Environment for Company Formation
The business owners have to choose the right ecosystem for company formation in the UAE. In Dubai, you will get the following options for deciding your business structure. Depending on your business goal, you should choose the right business structure.
- On-Shore Business: Also recognised as mainland businesses, the on-shore businesses need a UAE national to form such business. However, foreigners can also run such business through local service agents in Dubai.
- Off-Shore: An offshore business has been used as an asset for international trading. The international brands that want to invest in Dubai can choose such an ecosystem. The authority encourages offshore business, as it boosts the state’s economy.
- Free Zone: The third type of business ecosystem is known as the free zone. Dubai offers such free zones to the large corporations that invest heavily. However, they also seek tax exemption and other exclusive facilities.
Tax Incentives for Incorporation
A business seeks two things before expanding to a country or region. Firstly, it wants a good atmosphere for growing the businesses. Secondly, it looks for the tax exemptions and other such supports from the local government. Dubai offers both these things to investors and international businesses.
A simplified tax structure in Dubai attracts many investors to this city. On the other hand, the government rewards the investors through various tax incentive schemes. Improving business processes and workforce efficiency helps the businesses to obtain different kinds of tax incentives from the local authority.
The Presence of Free Economic Zones
Only a few big cities of the world offer free economic zones to investors, and Dubai is one of those cities. The process for company setup in Dubai has become easier due to the presence of many free zones. Some of the popular free zones in Dubai are Dubai South, DMCC, Dubai Internet City, Dubai Design District, and many more.
All free zones allow 100% private ownership to the foreign inventors in Dubai. Nevertheless, a business setup in such regions helps the businesses avail 100% corporate tax exemption for the next 50 years. Therefore, the free zones in Dubai have become the hubs for many well-known businesses.
The free economic zones in Dubai offer attractive infrastructure to support the businesses. Dubai is a hi-tech city, and all these free zones are poised with high-end facilities for boosting the performances of the companies operating in these zones.
A Huge Labour Market
Dubai has a huge labour market, and thus businesses investing here do not have to worry about finding an efficient workforce. In the UAE, you will find that people come from different countries searching for jobs. People from various Asian and African countries come to this country in search of contractual and permanent jobs.
Since the UAE is a high-income country, the companies can expect efficient workforces here. Skilled people seek jobs in different companies according to their competence. For this reason, many international companies show interest in company formation in Dubai.
Dubai Has a Bright Economic Future
An investment in Dubai will yield a high return as the city keeps growing economically. With the advent of time, the city has adopted new infrastructural development projects. Completion of those projects makes the city father business-friendly.
Along with Dubai, other cities of the UAE have excellent prospects. All these cities can draw many investors in the coming years, as they offer top-class facilities and a cutting-edge business environment.
Find a Business Consultant
Though company establishment in Dubai is a hassle-free process, business owners need to find efficient and experienced business consultants to help them. The business consultants’ job is to judge the company requirements and suggest the right business formation ideas in Dubai and other cities in the UAE.
Dubai Business Setup is the website that renders useful and detailed information on company formation in Dubai. The business owners can obtain advanced suggestions and ideas for business formation in this city. Choosing the right path from the beginning helps businesses grow quickly.
