Thing to Remember When Setting up A Business in Dubaiby Alexandra Mathews Business Consultant from UAE
Business Setup in Dubai
The government and authorities of Dubai are always in favor of people starting up businesses. Business Setup in Dubai has become easier with the introduction of new and improved government policies. The emirate offers world-class infrastructure, business-friendly environment and regular incentives to the business owners. Even as the pandemic disrupted global economy, the emirate managed to help businesses of all kinds to recover swiftly with their wholehearted support.
The government has been amending company laws and implementing advanced technology, all for establishing the emirate as an ideal location for investments. Dubai welcomes foreign investment as it benefits in the growth of the emirate and will in turn improve the living condition of the people furthermore. The lifestyle in Dubai is a major attraction for the investors. Well, if you are planning to set up a business in Dubai, there are many more for you to know.
Dubai has three different jurisdictions in which you can set up a company:
- Free zone
Mainland company also called the onshore company offers you the luxury of doing business in the local market and to set up an office anywhere in UAE. Up until 2020, to own a business in the Dubai mainland, one had to have a local sponsor who held 51% of the companies share. With the amendment of the Company Law, foreign investors can have 100% ownership of businesses in the Dubai mainland. The types of companies that can be set up in the mainland are:
- Limited Liability Company (LLC)
- Joint Venture Company
- Public and Private Joint Stock Company
- Civil Company
- Branch of a Local or GCC Company
- Branch of a Foreign and Free Zone Company
- Sole Establishment
Free Zones offer 100% business ownership and repatriation of profits to foreign investors. Dubai has 30 free zones and are the main contributors to the emirate’s economy. Free zones have highly developed infrastructure and technology. It is 100% tax free.
Offshore companies are set up in no-tax jurisdictions to gain tax advantages. They offer asset protection, high confidentiality and much more.
For any business to function in Dubai, Trade licenses are a must. The licenses are categorized into three based on the type of business activity.
- Commercial license: It is issued for those who wish to take part in any kind of trade activities.
- Professional license: For those that offer any type of professional services.
- Industrial license: It is issued for those that take up any sort of manufacturing and industrial purposes.
UAE is preparing itself to be more indulged in its expansion as a global leader. The country has joined hands with world leaders of technology which opens more opportunities for the emirate. Dubai aims to be the most preferred location for foreign investments and is likely to achieve its goal soon.
Created on Feb 25th 2021 22:35. Viewed 60 times.