WHAT ARE THE MYTHS ABOUT SETTING UP A BUSINESS IN DUBAI & THE UAE?
MYTH 1: THE COST OF DOING BUSINESS IN THE UAE IS HIGH.
Fact: Investors can start a company anywhere in the world with a certain amount of funding. From one county to the next, business formation costs vary. However, launching a business in Dubai is less expensive compared to other European countries. A range of taxes are expected to be paid by other prominent jurisdictions, including capital gains tax, dividend tax, etc. Whereas, you do not have to pay these taxes when setting up a company in Dubai and the UAE. However, a 9% Corporate Tax in the UAE was put in effect starting June 2023. Therefore, the operating cost of your UAE business is lower overall compared to other countries.
MYTH 2: YOU NEED TO PARTNER WITH A LOCAL UAE NATIONAL TO DO BUSINESS IN THE UAE.
Fact: This is one of the biggest myths about the process of starting a business in Dubai and the UAE. Free zones and mainland Dubai both permit 100% foreign ownership, and do not require a citizen of the UAE to serve as a local sponsor, become a shareholder, be involved in the operation, or invest in your UAE company.
Foreign investors can now fully own and manage a mainland corporation under specific commercial license activities. For example, mainland Dubai now permits Real estate brokerage companies to set up with 100% foreign ownership (whereas, previously, they were 100% owned by UAE citizens).
There are certain business activities in mainland UAE that may require a local sponsor, however, our team of expert consultants will be able to guide you on this process or an alternative option.
MYTH 3: SETTING UP / REGISTERING A COMPANY IN THE DUBAI & THE UAE TAKES TIME.
Fact: Starting a business in Dubai and the UAE should be quick and does not take a long time, provided you engage with a registered corporate services provider that will ensure you have all the necessary paperwork in place, the right structure is selected and is an expert to seamless navigate the entire process so you can concentrate working on your business. Most licensing authorities in the UAE issue a company license within one week. However, if further governmental clearances are required with your company business activity or business premises this can add days or week to complete company formation process.
MYTH 4: STARTING A DUBAI COMPANY REQUIRES A SIGNIFICANT AMOUNT OF PAID-UP CAPITAL.
Fact: Thanks to Dubai’s investment-friendly legislation, investors and entrepreneurs do not need to put up a significant amount of money to start a business. Entrepreneurs, SMEs, and conglomerates look up to the UAE as the ideal destination to launch their operations because of pro-business reforms, top-notch facilities, and amazing infrastructure. The UAE presently holds number 1 in the Middle East and 16 place globally by the World Bank’s Ease of Doing Business rankings.
WHAT ARE THE DO’S & DON’TS FOR DOING BUSINESS IN DUBAI, UAE?
Do’s
- Market research in Dubai and the UAE on the business you wish to establish.
- Set a budget to incorporate, operate and manage your company in Dubai and the UAE.
- Select a registered corporate service provider that is qualified to advise and form your UAE entity.
- With the help of the corporate services company, apply for the right license aligned with your nature of business for the present and the future.
- Understand the benefits and differences of setting up a business in UAE mainland, free zones or offshore.
- Research office / business premises availability, sizes, and conditions.
- Choose the ideal location where you wish to manage your business.
- Engage a reliable, experienced professional corporate services provider to manage the initial company set-up and all post company setup processes to make it simpler, faster and comply with regulations.
Don’ts
- Select the cheapest company setup option, the cheapest is often not the right option.
- Try to set up and register a company yourself or directly with an authority as there are many other factors to consider.
- Choose an agent unless they are a registered corporate service provider. Ask to see a company license to ensure they are licensed as a corporates services company and their consultants qualified.
- Setup a company unless you have the funds, set a budget and plan in place.
- Rely on the information you read online as this can be outdated and may be incorrect.
- Try to apply for UAE residency visas yourself. Engage with a registered corporate services provider.
- Attempt to open a company bank account yourself. Engage with our team who partner with the top local and regional banks to get your account opened asap.
TAKEAWAY
Creation Business Consultants will guide you throughout the entire process of setting up your business in Dubai and the UAE. Our business setup model ensures to remove the bureaucracy and complexity with company setups, enabling businesses to be operational in the fastest way possible. From selecting the right route for your company and securing the proper documentation, our team of experts simplifies the process while simultaneously providing you with all the details needed to complete the process in Dubai and the UAE. Contact a member of our team to learn more about setting up a company via email at [email protected] or call UAE +971 4 878 6240
