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Why Start Your Business in Dubai, UAE

business in dubai

UAE, the land surviving with success is always a perfect option to choose. Starting a business abroad can be a daunting prospect. When the foreign country in question is the UAE, however, it is anything but. The Emirates is an incredibly welcoming and supportive business environment where many startups and entrepreneurs are growing without any limit. The land is rich by birth and it flourished thousands of entrepreneurs within a short duration.

With the development the country is progressing to its peak holding many businessmen as a winner.

That’s one of the many reasons why some 20,000 new businesses launch in Dubai alone every year. With an expat community of 80-90%, many of these new businesses are set up by international entrepreneurs.

If you’re considering adding to that number, here’s everything you need to know about starting a business in Dubai – from the key benefits, to how to choose a company name and apply for licenses and visas.

Benefits of starting a business in Dubai

There are plenty of reasons why thousands of entrepreneurs over the world flock to the UAE and Dubai to do business. These include:

Low tax

The most beneficial part in setting up a business in Dubai is that 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%.

Set up in a free zone and you’ll also benefit from 100% repatriation of capital and profits, no currency restrictions, and 100% import and export tax exemption.

What does this mean for the entrepreneur?

Tax is a major outgoing for most businesses in other parts of the world. When cash flow is tight in the early days of a startup, it can be a significant, and completely unavoidable, expense.

UAE, benefits entrepreneurs in exempting from a huge TAX where they can improve many things in their preferred business. You will pay zero tax on both

your personal and corporate income. This not only improves the profitability of your operation, but at the same time it also gives your business much more liquidity, potentially improving your cash flow and leaving you with more disposable income to reinvest in your company.

Startup support

The Emirates is home to many 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. Many of the UAE’s free zones also feature startup incubators and venture capital forums aimed at helping small businesses grow and find funding. Startup support was one of the great thing to be taken into consideration where UAE supported and welcomed new entrepreneurs giving complete rights and assistance.

The UAE government is also committed, by law, to award at least 10% of government contracts to small businesses every year. Meanwhile Dubai recently unveiled its plans to shorten payment cycles for SMEs in an effort to increase liquidity and promote growth.

What does this mean for the entrepreneur?

The benefits of working in an environment that is not just welcoming to small business but highly encouraging, cannot be overstated. UAE gives an effective support to new entrepreneurs and a good working environment for growing the business. An environment that is set up to help businesses grow means

you’re never short of options whether you’re looking for advice, mentorship or

even funding.

And clearly, it is a system that works – SMEs account for 95% of the enterprise

population in Dubai and contribute 40% of the emirate’s GDP.

Vibrant economy

The Emirates is home to the second largest economy in the Arab world, with a GDP of around AED 692bn, behind only Saudi Arabia.

A large diverse land, with several industries from healthcare and hospitality to technology and trade in the ascendancy in this part of the world. This has led the Index of Economic Freedom to praise the UAE economy for its broad-based and dynamic growth underpinned by continuous efforts to strengthen the

business climate, boost investment, and foster the emergence of a more vibrant and diverse private sector. UAE is known for its development and progress where still in this century it beats down other countries

What does this mean for the entrepreneur?

A large and diverse economy presents a wide range of opportunities for the entrepreneur to grow. A strong economy promotes trust and encourages investments. All the entrepreneurs are happier to invest in new offerings and the cycle of economic stimulation continues.

A strong economy also tends to lead to higher wages. In the UAE, wages increased by 3.9% in 2019, leading to a net positive increase in disposable income – great news if you’re selling straight to the consumer.

Strategic location

Location helped in growing business so far where Dubai’s location makes it the ideal hub from which to trade with the vast markets of East and West. Its time zone overlaps with that of many global business cities and its two busy airports put one-third of the world’s population within a four-hour flight and two-thirds within eight hours.

What does this mean for the entrepreneur?

The UAE is the perfect place to conduct international business in the world. Its strategic location at the heart of the Middle East affords it a time zone that overlaps with the working day of most leading business cities in Asia, Africa, Europe and the east coast of America.

The Emirates is also home to two of the world’s busiest airports – Dubai International and Dubai World Central – offering direct passenger and cargo services to much of Asia, Africa and Europe – and even as far afield as the USA and Australia. If you’re looking to import or export, the UAE is also well served by sea, with Jebel Ali port among the world’s top ten busiest.

Ready to start your business in Dubai? Here’s how to get things underway:

Choose an activity

This needs to be decided upfront because your chosen activities can affect where you can set up. The Dubai Department of Economic Development lists over 2,000 activities that your business can fall under.

Choose free zone or mainland

In setting up a business in a free zone, you’ll benefit from 100% company ownership, 100% repatriation of capital and profits, no currency restrictions, and 100% import and export tax exemption, you will need to work with a partner to trade locally in the UAE. Business set up in the mainland is different where you can trade directly with the local market and take on government contracts.

Choose a company name

A company name is mandatory for your progress and there are some

conventions in UAE for naming a company. You’ll need to adhere to the UAE’s strict naming conventions to move your business forward. A company formation specialist can help and ensure you meet the criteria.

Apply for a license

There are some papers to be submitted for applying for a License. You will usually only require a few standard documents including a completed application form, shareholder passport copies, and so on, whether you’re setting up in a free zone or the mainland.

Open a bank account

After getting your license in hand, you are free to open a UAE corporate bank account. You can choose from a host of international, local, and Islamic banks based here in the UAE or you will be assisted by a business expert

Apply for your visa

The final step in the business setup process is immigration and visa processing. Again, a perfect company formation specialist can guide you through this process.

Working with Us (company name)

Whatever your reasons for starting a business in Dubai – and whichever set-up you choose Our effective team is on hand to help you with every step of the process from choosing a business activity and company name, to registering with the relevant authorities, opening corporate bank accounts and processing visa applications. We’ll take care of all the heavy lifting for you. All that is usually required on your part is some basic documentation, passport copies, etc. and a few hours of your time. In some cases, it may even be possible to register your business without visiting the UAE.

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Business Ideas in Dubai for Ladies

Women face an uphill battle to start a business and succeed. It’s a long road. Women in particular may think a company formation in Dubai is a big no-no. The economic landscape in Dubai has changed drastically over the years, as it has transformed into a prosperous economic hub where anyone can start a business based on their passion or their choice. Ladies, Dubai, one of the most successful commercial hubs in the world, is the perfect place to start your business, as long as your B plan passes the legal formalities.There are many ideas for small business ideas in UAE that could turn you into a successful business woman,

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Affiliate Marketing

It’s really not that complicated as it sounds. Affiliate marketing is a performance-based marketing method, in which you can earn money based on the sales you generate through the referrals. As one of the most lucrative ways for women to earn money, affiliate marketing is growing and expanding

Digital marketing & Content writing

It has been found that many firms, large and small, are seeking expert assistance with managing their social media profiles, since every company is seeking a regular and effective presence on social media sites such as Facebook, Instagram, Snapchat, Twitter, etc. The best way to do this would be to take a digital marketing course and keep up to date with all the latest trends. It’s also imperative to have creative flair when creating social media posts, as well as attractive writing skills. As a content writer, if you possess the right communicative skills, adaptability, and organization skills, you are good to go.

Boutiques

Company formation in Dubai can make a nice profit if one has a good sense of fashion and is willing to put in the effort. Opening a boutique store is certainly a great idea for women. One of the best small profitable business ideas a woman can pick is this one. A woman who knows how to source items and stay on top of the latest fashion trends can create a boom in boutique business.

Event Planning & Management

Your event planning and management agency business would be a good choice if you are good with communication skills and have excellent planning skills. To start with, you should familiarize yourself with the right contacts in order to get big business through referrals. Married couples, corporate companies, non-profit organizations, and families are the best target groups as they regularly organize events.

Wellness

Women are leading the wellness industry and are one of the best entrepreneur ideas for women. This market has seen massive growth in recent years. Wellness business is something that the world who seek stress-free balanced living are looking for. The starting up of a wellness business is the best option in terms of gaining a steady income after researching the competitors, obtaining a license, and finding a potential target. Be your own boss!!

 

Bakeries

If you love cooking, starting a bakery is one of the best and easy business ideas to start from home. You can make freshly baked cakes, bread and pastries and sell it through your website or social media platforms. If you find good sources of quality materials, you may even be able to start a large-scale business

Crafts Business

There are many small business ideas in UAE for women to prosper, but Crafts Business is a viable choice for creative women with an art mindset because it requires a low investment. You can explore different options in the crafting business including charcoal paintings, caricature, bamboo handicrafts, bonsai farming, candle making, and much more. In this business, one is required to do a lot of homework and research to reach the top. If you do that, you can become the industry’s trendsetter.

There are many success stories regarding women establishing company formation in Dubai and running a successful business venture there. If you’re looking for ideas for a small business to get successful, all it takes is to choose your business idea according to your passion, preference, talent, and taste. Look out for the best entrepreneur ideas for women above, grab it  and be your own boss.