For those wanting to start their own business, especially in the Middle East region, they should look no further than the United Arab Emirates, and in UAE the emirate of choice should be Dubai. Dubai has everything going for it, not only does it have an excellent location but it also has great infrastructure.
It has the largest population of all the emirates and is known as the cultural, economic, and tourism hub of the region. Tax wise you cannot ask for a better place as the country has almost nonexistent taxation policy. So, for those wanting to start business in Dubai, everything is looking on the up in up.
If you are one of these people and need a little bit of guidance on setting up a business in Dubai, then you have come to the right place as we will not only tell you the benefits but will also help explain the complete process of business registration in Dubai.
Benefits of a Business Setup in Dubai
We have already given you a brief preview of why it is a great idea to set up your business in Dubai, but here is a brief look at the many benefits you will get if you choose Dubai as the location for your business, both locally and internationally.
You pay almost no taxes
Dubai is part of the United Arab Emirates and the country has one of the best tax policies in the world. You only have to pay the value-added tax of 5% or a corporate tax if your business is on the mainland and even then, it might not apply to you as businesses have to meet certain conditions for it.
But if your Business setup in Dubai is in one of the free zones then you don’t even have to worry about these taxes as they are then applied only in specific cases. This makes Dubai and UAE as a whole one of the best places to start a business.
A government that is friendly to businesses
While oil is still one of its biggest exports UAE is gradually moving away from it and is branding itself as a major business and tourism hub and the emirate representing this the most is Dubai. As such the government is extremely friendly towards, businesses, companies, and freelancers.
It ensures that the process of setting up a business in Dubai is fast, smooth, and without any major complications. Not only does the government help set up businesses but also helps them flourish and grow.
Access to great infrastructure
To have a thriving business community you need to have good economic conditions and great infrastructure and Dubai has both. Anything a business wants or needs the emirate can provide and as such more and more businesses are moving to Dubai.
Booming business community
With so many businesses moving to Dubai, and new startups popping up, it has developed a thriving business community as it gives new businesses a better chance of being successful as they get easy access to markets, clients, and other technical expertise.
Access to a skilled worked force
The majority of the population in Dubai is expats and immigrants who have come to Dubai in search of jobs and a better life and they bring with them years of experience and skills in a variety of different fields. So whatever business you want to set up you will not have any problem recruitment-wise.
Perfect geolocation
Dubai and hence UAE has an almost perfect geolocation as long as you don’t mind the warm weather. It is located in the middle of three major continents, Asia, Europe, and Africa, making it a perfect location for trade and other business activities.
Finding the best location for your business
In Dubai as with any other city or country, finding the right location to set up your business is very important. Thankfully Dubai makes it very easy for you as it has created dedicated free zones for various businesses that not only have no or little taxes but are also very family friendly.
Here is a list of some of the best free zones to choose from when setting up your business.
- Dubai Internet City (DIC)
- Dubai Knowledge Park (DKP)
- Dubai Silicon Oasis (DSO)
- Dubai Airport Free Zone (DAFZ)
- Dubai Science Park (DSP)
- Dubai Multi Commodities Centre (DMCC)
- Meydan Free zone
- Jebel Ali Free Zone
List of Documents needed for a Dubai Business Setup Process
Before you begin the registration process for your business, you will need to fill in an application and with it, you will need to provide a variety of different documents. It is always prudent to do a deep search about your business and gather all the necessary documents beforehand and here is a list of some of the common documents that you might need.
- Copies of visas (If applicable)
- A Business plan
- A Lease Agreement
- Financial Details (Corporate Bank Account, Bank Statements etc.)
- No Objection Certificate (NOC) (If applicable)
- Memorandum of Association (MOA) (If applicable)
- Finally, a Trade License
Process of Business Registration in Dubai
Once you have selected a location for your business and have gathered all the necessary documents. It is time to finally begin the registration process. Depending on the location of your business i.e. if it is on the mainland or one of the free trade zones, the process can vary but here is a general breakdown.
- Registering a Name: The first thing that people notice about your business is the name. Ensure that it is unique and does not infringe on any other business’s trade mark and most importantly the Dubai government won’t object to it.
- Forming a Business Plan: You need to ensure that you have a solid business plan, this means having a sizable capital as well as a business structure, as when registering your business, you will need to tell if it is a limited liability corporation, a sole ownership or some other structure.
- Getting a Corporate Bank Account: You will need to open a corporate bank account to store your capital and it would need to be sufficient enough to prove to the Dubai government that not only can you pay your employees but also meet your other business expenses.
Getting all the Permits and Licenses: Dubai is a place of rules and regulations and as such you will need to get a variety of permits and licenses for your business. So ensure you have all the necessary documents like a trade license etc.
