9 things to know before opening a business in Dubai

The United Arab Emirates (UAE) is a global economic powerhouse with a diverse and thriving economy. As a member of the World Trade Organization, the UAE plays a crucial role in international trade and commerce, making it an attractive destination for entrepreneurs and investors looking to set up a business. If you're considering starting a business in the financial capital of Dubai, here are nine things you should know before opening your Business that may influence your decision:

Choosing the Right Structure is Crucial

The structure of your business will be a key factor in its success or failure. A Limited Liability Company is the most common structure for business registration in Dubai, while registering a Free Zone company is becoming increasingly popular among foreign investors and allows for 100% foreign ownership in Free Zones such as IFZA.

Free Zones Offer Significant Benefits

Free Zones in the UAE allow for 100% foreign ownership. These specialized areas are home to many leading global companies in the commodities sector. Free Zones offer purpose-built infrastructure, flexible office solutions, streamlined immigration procedures.

Dubai Offers Tax Incentives for Incorporation

The UAE government offers tax exemptions on personal income allowing investors to keep full profits and reinvest in their businesses. Minimum taxes and a simplified tax structure also make it easier to open and operate a business in Dubai. Choosing the right company structure and having a competitive business strategy can also help you qualify for additional tax benefits.

The Local Rules and Regulations are Business-Friendly

The UAE is renowned for its strong legal structure and is consistently ranked as one of the best countries in the world for doing business. The rules that govern foreign investors are separate from those that govern labor, with criminal law being the only exception. The process of registering and opening a business in Dubai can be completed in less than a month, and in some emirates, company registration and licensing can be obtained within 24 hours.

The Government is Highly Supportive

The UAE is a secure and stable country with a visionary government that encourages foreign investment in all sectors. His Highness Mohammed bin Rashid Al Maktoum has played a key role in driving the economic transformation of Dubai and has made it a priority to provide various business opportunities for foreign investors.

100% Ownership is Available to Expats

100% ownership by setting up a Free Zone company. Different ownership regulations apply depending on the type of company and its location.

The Currency Exchange Rate is Favorable

The UAE's currency, the dirham (AED), has remained stable and largely unchanged against major currencies such as the US dollar since 1997. The exchange rate is also favorable with most countries in the Arab World, Africa, Asia, and Europe. The stability of the AED's purchasing power and its strength against other currencies can give businesses in the UAE an advantage in global trade. In addition, the UAE has a world-class banking industry, providing a competitive edge for businesses in the region.

The Labor Market is Diverse and Highly Skilled

Dubai has a large and diverse labor market thanks to the immigration and labor policies implemented by the government. The city is home to professionals from more than 200 nationalities, offering businesses access to a pool of highly educated, experienced, and motivated talent. However, it's worth noting that the UAE is a high-income country, so you can expect to pay a premium for top talent.?

Business Strategy Consulting can be Beneficial

If you're feeling overwhelmed by the process of setting up a business in Dubai, business strategy consulting services like those provided by Capatt Services can help. They can provide guidance on understanding the local market, developing a plan for growth and success, and navigating the company formation process in Dubai. This can include support with business and personal bank account opening, immigration support for you, your dependents, and employees, and more.?

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