- March 27, 2019
- Posted by: Parminder
- Category: Dubai Business Services
Even though the UAE may appear as a dead-end for businesses because of the complications involved with the same, still the region provides favourable opportunities for business. This can be observed clearly in the registration and launch of almost 22,000 new businesses in 2017 with a large share of them being entrepreneurs from overseas locations. Further reflection on the benefits of establishing a business in Dubai and the different vital pointers for the process would be the primary focus of our discussion that follows.
Reasons to choose Dubai:
If you are reluctant to start a business in Dubai, then a look at the different benefits of the same could help in clarifying some doubts.
- The foremost reason for the improved appeal of Dubai for entrepreneurs is the low tax regimen with only the VAT estimated at 5% is the only concern.
- The ranking of the UAE on the Best Countries Index of 2017 was 23rd which shows the higher quality of life in the region.
- The various funding initiatives and start-ups incubators in the Emirates are aptly tailored for the promotion of business growth. For example, the Mohammed Bin Rashid Innovation Fund is a renowned measure for supporting UAE companies through finance as well as expert guidance for translation of business ideas into reality.
- The UAE is also characterized as the second largest economy in the Arab region with the estimated GDP reaching almost AED 692bn. Furthermore, the economy in UAE also harbours diverse industries such as technology, trade, hospitality, and healthcare.
Troubles are bound to arrive:
Dubai is the most promising location in the UAE for new businesses especially with the increasing tourist volumes as well as the flexibility of the business environment. However, there are various setbacks to start a business in Dubai which must be taken into account for making sure that your business plan is not restricted only to Dubai. Let us explore the setbacks and possible measures to address them for the cost-effective establishment of your new business.
Dealing with the basics:
The first issue that arises when starting a business in the Emirates is the definition of the nature of business as well as procuring the relevant license and selection of a place for registration or formation of the company.
You can register your company as one of the three types of offshore companies, and the other two options are observed in the Free Trade Zones and the Non-Free Trade Zones. The 30 Free Trade Zones have different requirements for various types of companies and business activities. However, the Free Trade Zones can limit the prospects for reaching out directly to customers. For example, restaurants could not prosper well in the Free Trade Zones. On the other hand, Non-Free Trade Zones are open for starting a business with the sole requirement of registering a local business or individual with 51% partnership in the business as a ‘local sponsor.’
Choose the partner wisely!
The second issue builds upon one of the solutions for the above-discussed problem. If you want to start a business in Dubai in the Non-Free Trade Zone, then it is essential to find a local sponsor and the selection of the local sponsor can be troublesome. Finding the services of the right business consultants could help in dealing with this issue effectively!
The comprehensiveness of your planning and the care taken in research on the imperatives for establishing a business in Dubai would be the most crucial tools in accomplishing success with a new business set up in the Emirates.