Setting Up Business In Dubai
Setting Up Business In Dubai
Dubai is globally recognised as the Middle East’s financial hub and to earn this status, the emirate has to have several advantages over the other worldwide business locations. Internationally, Dubai is best known for its tax-free business environment, but there’s a lot more as incentives for the foreign investor. While many talk about why an investor should set up business in Dubai, not many focus on how it should be done. So, let’s focus on this particular aspect in the pages of knowledge here.
In general, Dubai is excellent for those entrepreneurs looking to escape heavy corporate and income tax. Additionally, Dubai has two business set-up aspects, from which the investors can choose from. Firstly, there’s the Dubai city region and secondly, there are the free zones. Both aspects have varied advantages and depending on your specific circumstances, you can opt to set up in a free zone or the city limits. However, there are times when you might not have the choice, because your business activities are restricted to either a free zone or the city limits, which will be determined once you apply for a business licence. The main city business set up process falls within the jurisdiction of the Dubai Department of Economic Development, while free zone business set ups are handled exclusively by the specific Free Zone Authority.
Typically, foreign investors from Western and European countries prefer to set up business in a Dubai free zone, partly because of the popularity of free zones, but mostly because free zones are the most beneficial for non-GCC nationals. Foreigners are permitted to own a business 100% within a free zone, while outside, a foreigner can only own up to 49% of a business. This is applicable to the most popular type of business formation in Dubai, the Limited Liability Company (LLC). Trading companies fall under this category. Professional practices and industrial production businesses are subjected to different sets of rules and regulations.
Overall, setting up business in Dubai is a very simple process if you know what to do and whom to go to. It’s advisable to approach a business consultant specialising in Dubai business set up, as there are many aspects to consider before establishing your business in Dubai. Factors such as the number of business owners/partners, the exact business activities, whether you want to establish a main office or branch etc are highly relevant to how and where you can set up your Dubai business.
