What is the best location to set up a business in Dubai?

Launching your business anywhere in Dubai will definitely make you a winner. However, if you select the right location based on the nature of your business, double the success! The ideal setting for your business will create a fertile ground for your business to prosper. Therefore, before choosing where to launch your business in Dubai, you should consult business setup consultants and industry experts.?

Dubai continues to be a top option for investors wishing to launch a new international business or grow an existing one because of its favorable conditions and new rules regarding foreign ownership and investments.

Due to its ongoing expansion, the city is seeing an increasing number of commercial buildings constructed in various areas. In response to the growing need for professional, affordable workspaces, more service providers and property owners have begun to offer serviced offices in Dubai.

Dubai has a lot of business centers that provide excellent visibility and room for expansion, but some of the city's locations offer more than just their strategic location.

In this article, we will discuss the best locations in Dubai to set up your business. Before that we will talk about some basics regarding setting up a business in Dubai.

Benefits of setting up a business in Dubai

The following are the top benefits of establishing a business in Dubai:

1.Easy Company Setup Process

Dubai's helpful government and advanced technology make it incredibly easy to start a business. It takes little time or paperwork to register your business, and the process is straightforward. If you're not sure, professionals can help.

2. No Tax

The absence of taxes is ideal! Neither corporation taxes nor income taxes are due. Some businesses may have to pay a small amount of tax (5%) on specific items.

3.? Hire people

Dubai is a well-liked global business destination. Hiring international talent is possible because many investors are interested in doing business in this area. There are jobs in many industries, including tourism and logistics.

4. Free Zones

More than thirty free zones are available in Dubai for business startups. These areas allow you to fully own your business, create good profits, and work with people in similar fields.?

5. Technology Boost

Dubai has highly advanced technology. It's developing into a digital center that makes doing business online simple.

6. 100% Foreign Ownership

You have the option of setting up your business in a free zone or on the mainland when you do so in Dubai. You can maintain complete ownership of your business by establishing it in a free zone, giving you complete authority over its operations. However, if you launch your business in the Dubai mainland, you will need a local sponsor.

7. Great Location

Due to Dubai's geographic location, communication with other nations is simple. Excellent seaports and airports facilitate trade activities such as exporting and importing.

8. Stunning Facilities

The best infrastructure is found in Dubai. It continues to improve and attracts a large number of business people. The city offers excellent facilities, transportation, and communication.

9. Luxurious Way of Living

Living in Dubai will allow you to interact with people from various cultural backgrounds. You will be able to develop relationships and learn about a wide range of cultures and people as a result, which will support the expansion of your company. Due to Dubai residents' constant interest in high-quality services, you can use your marketing strategy to target both your target market and niche markets.

Types of business structures available in Dubai

It's essential to understand the various business structure options if you're thinking about setting up a business in the United Arab Emirates. Below mentioned are the 5 types of business structures available in Dubai.

Sole Proprietorship

In the United Arab Emirates, the most basic and common form of business structure is the sole proprietorship. The sole proprietor and manager bears full responsibility for every aspect of the enterprise. The owner is personally liable for any debts or legal issues that may arise due to their unlimited liability.

Partnership

Partnership is a type of business structure where two or more individuals jointly own the company. In addition to splitting management duties, the partners also split the company's gains and losses. While there are both general and limited partners in a limited partnership, all partners in a general partnership are subject to unlimited liability.

Limited Liability Company (LLC)

In the UAE, an LLC is a common form of business structure. Because of its legal separation from its owners, the owners' liability is restricted. An LLC must have at least one local Emirati partner who owns at least 51% of the business. An LLC may have two to fifty shareholders.

Free Zone Company

A company established in one of the many free zones in the United Arab Emirates is known as a free zone company. Free zones provide a number of benefits, such as simplified company registration, tax exemptions, and 100% foreign ownership. However, the ability of free zone companies to conduct business outside of the zone is restricted.

Branch Of a Foreign Company

A business arrangement that enables a foreign company to create a presence in the United Arab Emirates is a branch. The parent company is still fully liable for the actions of the branch and does not consider the branch to be a separate legal entity.

Different types of business licenses available in Dubai

A trade license is a must when it comes to conducting businesses in the UAE. The licenses are issued by the UAE Economic Department, with different emirates having different licensing procedures. In the United Arab Emirates, commercial, industrial, and professional licenses are the three main categories. However, in addition to these licenses, the government also grants other licenses that are particular to particular activities.

Commercial Licenses

Companies engaged in any kind of commercial trade activity involving goods, commodities, and services are granted commercial licenses. Prior to submitting an application for a commercial license, one must determine the activities they intend to carry out.

Commercial activity includes a variety of activities, such as real estate brokerage, car rentals, and logistics. Ten tertiary activities total per license, in addition to the primary activity.

Industrial Licenses

In the UAE, obtaining an industrial license is necessary before starting a manufacturing or industrial operation. Businesspeople can use imported or domestic raw materials to assemble and process goods with the industrial license. To manufacture anything of the below, one must have an industrial license.

• Food
• Textile
• Metals
• Equipment and engines
• Petroleum products
• Paper

Professional License

Professional licenses allow people and organizations to practice a talent-based profession in accordance with their educational background. This license can be used for a variety of activities, including carpentry, artisan ship, printing and publishing, medical services, beauty salons, computer graphic design, repair, security, and document clearing. Foreign investors can acquire 100% ownership of their company by obtaining a professional license.

Tourism License

Companies that rent out hotels, vacation homes, cruise boats, restaurants, guest houses, travel agencies, and other tourism-related services need to obtain a trade license.

Agriculture License

An agriculture license should be held by anyone engaged in agricultural-related activities such as planting and harvesting crops, trading pesticides, crops, etc., building greenhouses, and offering agricultural consulting services.

Craftsmanship License

For those who work in carpentry, electrical work, plumbing, etc., this license is necessary. A business must apply for a license if it hires craftsmen to work for it.

Doing business without a license is prohibited in the United Arab Emirates and can result in heavy fines or even a ban on the activity. In order to avoid penalties, the license must also be renewed annually.

Business jurisdictions available in Dubai

Companies in the United Arab Emirates have access to a variety of jurisdiction choices, each with special advantages and characteristics. There are three primary jurisdictions in the United Arab Emirates (UAE) where companies can set up shop: Mainland, Free Zone, and Offshore.

• Mainland businesses can engage in more than 3,000 different business activities, the most of which can be fully owned by foreign entities with no restrictions on location.

• Free Zone businesses, on the other hand, are limited in their ability to operate on the mainland without a valid branch license or agent, even though they are 100% foreign owned.

• Offshore companies, although they are not permitted to do business in the United Arab Emirates, can retain full ownership. Furthermore, visas may be issued by mainland and free zone businesses, whereas offshore companies cannot.

Best areas for each type of business in Dubai

The best areas for each type of business in Dubai are based on factors such as location, infrastructure, regulations, incentives, and opportunities.

Media City

Dubai Media City (DMC) has been the region's largest hub for media and content since its founding in 2001. It is home to the biggest national and international media brands, making it the most reliable media community in the area, thus making room for large corporations, startups, SMEs, and independent contractors to live and prosper. If you own a media-related company, it could be advantageous to locate your operations in one of the more well-known areas, like Media City's Concord Tower. Meeting investors or other business owners in similar or related industries may result from this.

Jumeirah Lake Towers

One of the free zone developments in the UAE with the fastest rate of growth is Jumeirah Lake Towers, or JLT. In addition to its advantageous location—it is near the Jebel Ali Free Zone and ports, Al Maktoum International Airport, and the Dubai Logistics Corridor—a number of businesses provide residential, retail, and commercial real estate for sale or lease. Actually, about 6,500 businesses in JLT make use of the amenities and services available to them.

Business Bay

A central business district called Business Bay is intended to house at least 240 buildings for residential and commercial developments. Located behind Sheik Zayed Road and adjacent to Downtown Dubai, the area provides good access to the rest of the city. Another well-liked location for upscale corporate offices for foreign businesses searching for furnished offices for rent in Dubai is Business Bay.

Abu Dhabi?

There are a few free zones where people can do business and have complete freedom. The primary industry is tourism, but there are numerous other sectors as well. Abu Dhabi has significantly more wealth than any other region in the United Arab Emirates, despite having far more conservative business laws and regulations. In any case, the friendly yet competitive nature of business makes it a great place to work.

Ajman

Ajman is the best location in the United Arab Emirates to invest in the construction industry. If done correctly, you can maximize your return on investment in the construction industry in Ajman. Compared to other locations, Ajman boasts a large number of free zones that are easily visible on maps. It is highly conducive to business in free zones. The UAE has a balanced economy and has expanded its business reach in recent years. The main justification is that we are a methodical, progressive, and productive country.

Conclusion

Kiltons has been helping established business firms and new business entities launch their operations in the United Arab Emirates. We are going to go into more detail about the things to think about when picking a business location in Dubai. As an alternative, you can get in touch with us for thorough guidance and assistance with establishing a business in Dubai Offshore, Freezone, or Mainland.

We will help you establish your company in the most advantageous area of Dubai. All of the formalities involved in setting up your business will be handled by our professionals. As a result, you don't have to worry about things like the location, the paperwork needed for the first approval, the paperwork needed to get ministry and department approvals, the trade license that is issued, starting a business, leasing an office, commercial space, etc.