Starting a business is an exciting idea. You become your own boss, and you have an opportunity to get out of your comfort zone. Once you decided to start a business, one of the first things you have to think about is the ideal place to do business. In particular, doing business in Dubai has become one of the best options in the professional world.
In this article, we will talk about all the benefits of having a business in Dubai, as well as all the aspects that you should keep in mind before setting up a business in the UAE. Due to its growing economy and flexible business environment, Dubai has become the biggest attraction for entrepreneurs. Let us look at the content in more detail:
- What are the benefits of starting a business in Dubai?
- What are the challenges of starting a company in Dubai?
- Steps for starting a business in Dubai
- How can this agency help you start your business in Dubai?
1. What are the benefits of starting a business in Dubai?
There are many reasons why setting up your business in Dubai is beneficial. From geographical and cultural advantages to economic and political ones. We are going to present the top ten reasons why setting up a business in Dubai is a good idea. Take all these advantages into account to start the best company in Dubai.
1.1 Strategic geographical position
Due to its geographical location, Dubai has been one of the best options for doing business throughout history. Dubai is located midway between the east and the west and is bordered by Asia, Europe, and Africa. Because it has connections with each of these continents, it has access to the largest markets and is ideal for trading, export, import, and logistics.
Dubai is easily accessible by both air and sea. As for the airway, Dubai has two of the busiest airports in the world, Dubai International and Dubai World Central. In this way, Dubai facilitates direct transportation between almost all continents. For this reason, it is ideal to start a business in Dubai.
1.2 Growing economy
Dubai has an economy that grows more every year. Thanks to its geographical location, the UAE makes more international shipments and trades each year than almost any other country. Furthermore, the GDP per capita of Dubai is outstanding.
The UAE is the third richest country in the world, with a GDP per capita of more than 50 thousand dollars. You can be sure that if you set up a Dubai business, your business will be stable thanks to the stable economy of the UAE.
In recent years, the health, infrastructure, and education sectors have prospered. The UAE business sector has not been an exception either. In addition to economic growth, the UAE government takes business seriously and facilitates investment.
1.3 Technological advancements
If you are thinking of starting a business in Dubai with a technological vision, you have the best tools at your disposal. Dubai is a technological power that thanks to its advances in this area has have able to optimize trade, traffic, Internet access, and hospitals. Technological advances also promote online Dubai businesses.
1.4 Excellent infrastructure
Dubai has the best infrastructure in the UAE. Every year, Dubai offers a better infrastructure for business spaces. In addition, it has one of the best infrastructures in terms of transportation and also telecommunications.
As we will see later, Dubai also offers the most modern spaces for business. A UAE business will always have a space in which to stand out.
1.5 Variety of business spaces
If you want to start a business in Dubai, it is good that you inform yourself about all the spaces that you have available in the city. The UAE has many business centers around the city, available to every professional business in Dubai.
For example, if you are a freelancer and want an office just for yourself, you can request a private office. If, on the other hand, you have some employees and would like to lease an economical space for them to work, you can request a co-working space. Or, if you like to work from home, you can request a virtual office.
The infrastructure offered by these spaces is comfortable and modern. Make sure you identify the space that best suits you so that you have the best business in Dubai.
1.6 Residency visa
If you live outside the UAE and want to start a business in Dubai, this will give you a great advantage in applying for residency visa. Due to the growth of businesses, companies, and investors, the UAE government has made it much easier to obtain residency visas for people starting a business in the United Arab Emirates.
With a Dubai business, you not only get residency for yourself, but you can also apply for residency for your family. In this way, a business in Dubai is not only an excellent commercial and investment opportunity but also an excellent idea to form a quality life with your family.
At Connect Business Center, in addition to offering spaces for you to achieve the best business in Dubai, we also offer services for the residence visa. Contact us to find out how to obtain your visa after consolidating your company in Dubai.
1.7 Ease of doing business
As we mentioned earlier, the UAE government has become increasingly cooperative with people who want to do business in Dubai. Starting your business in the UAE is getting easier thanks to government cooperation. Registering a new company in Dubai takes a few days and you do not need much.
1.8 Free zones
Dubai has more than 20 free zones. The free zones are areas in Dubai in which you can enjoy certain benefits. For example, you can have full control and ownership of your business. If you base your company in Dubai in a free zone, you are exempt from certain taxes.
1.9 Zero tax policy
A UAE business has the advantage of being exempt from taxes in the UAE. All types of taxes: personal income and corporate taxes are exempt in this country. Export and import taxes are also exempt.
This makes starting a business in Dubai convenient because you do not have to learn Dubai tax laws. In addition, you have greater freedom over the financial decisions of your business. You do not have to think about how to manage your business so that you can reduce taxes.
Some businesses in Dubai have to pay a small tax, known as the 5% Value-added Tax. However, many businesses are exempt. If you want to make sure that you will own 100% of your profits without worrying about taxes, you can base your business in any of the more than 20 free zones.
Contact us if you want to have more information about taxes in Dubai and the payments from which you can be exempt and from which you are not. Having this information before starting your business is very important to secure a successful outcome.
1.10 Safety
Dubai is a very safe city to live in, as well as politically and economically. With one of the lowest crime rates in the World, basing your commerce in Dubai ensures that no incident will happen to you or your business.
Also, as we already mentioned, Dubai is an economically stable country. Beyond stable, its economy is more prosperous and growing every year. Politically, the UAE stands out as one of the most stable nations in the Middle East.
If you want to start the best business in Dubai, take all these advantages in your favor. On a professional level, basing your company in Dubai is one of the best decisions you can make. Make sure you recognize the needs of your business to get the most out of the advantages of working in Dubai.
If your business has any specific needs or if something is not clear to you, contact us so that we can guide you in everything we can.
2. What are the challenges of starting a company in Dubai?
Now that you know all the advantages of establishing your business in Dubai, it is also good that you know what are the possible limitations and disadvantages that you could find along the way. Taking into account the positive and negative sides will make it easier for you to start your business in the UAE.
2.1 Trade limitations in free zones
As we mentioned before, Dubai has more than 20 free zones, in which you can enjoy a variety of benefits and the exemption of certain payments. However, trades within free zones are prohibited in all jurisdictions. Free zones can only conduct business with the Mainland part of Dubai under certain permits.
2.2 Business and cultural restrictions
Some businesses in Dubai are not allowed, for cultural reasons. Adjusting to the cultural rules of Dubai can be difficult if you come from a very different country. Religion and traditions are an important part of their culture and this can limit your business.
It is always advisable to have a consultant in Dubai before starting your Dubai business to ensure that your business concept is not restricted to the region.
2.3 The need for a local partner
If you come from outside the UAE and want to base your business in Dubai, it is a requirement that you have a national partner. To have greater security of where your resources go, you can associate with a UAE-owned company. These partnerships are safe and you only have to pay an annual fee.
3. Steps for starting a business in Dubai
To start a business in Dubai you just need to follow a few simple steps and have some documents at hand.
The first thing you should do is identify what your business activities are going to be to make sure that the type of business is allowed in Dubai.
Depending on the concept of your business, you will need an industrial license or a commercial license. An industrial license is required for production and packaging businesses. A business license is required for import and export business or the sale of electronic products.
Then, you must decide the zone in which you want to base your business, free zones or the Mainland. After that, it is necessary to obtain the approval of the Department of Economic Development. After getting approval for your business in Dubai, you need to register your business under a unique name and get a physical space to run it.
Finally, you must request a trade license with which you can carry out banking and commercial operations. By following these few steps you will be able to open your business in Dubai without major complications.
4. How can this agency help you start your business in Dubai?
When you decide to start a business, one of the most important decisions is: the region in which you should run it. Due to its growing economy, stable government, and strategic geographical position, Dubai has become one of the best business options in recent years. Starting your business in Dubai brings multiple benefits and you will only need a few steps.
Connect Business Center can help your start your professional business in Dubai. Among these services, we offer our business setup assistance, with our licensing services and company formation guidance .
Would you like to know more about how to start your business in Dubai? Contact us. You can call us at +971 43 316 688 if you need more information about the process of business formation. If you need help, you can also email us at info@connectbusinesscenter.com.
P.O. Box: 58526, Sheikh Zayed Road, City tower-2 9th Floor, Dubai, UAE
