Dubai is a premier business hub, so having a company here will definitely come with many advantages. Recent changes in the legislation favor those who want to set up enterprises here, as they can benefit from the removal of certain restrictions when operating in Dubai mainland. Let’s see what other advantages come with starting a business in this Emirate.

Full foreign ownership is now available in most sectors

Starting a company in Dubai mainland required a local partner until several years ago, however, the Government removed this legal imposition to enable foreign investors to set up operations without sponsorship in most sectors. Except for defense, telecommunications, and oil and gas, most industries allow overseas entrepreneurs to be the sole owners of their enterprises.

If you want to register a legal entity in Dubai these days, you still need to carry out the regular steps and even appoint a local service provider for certain actions. From this point of view, you have access to professional company formation services in Dubai, so that the procedure is completed quite rapidly.

Free zone availability at its finest

By now, everybody knows about Dubai’s numerous free zones, 21, to be more specific, and the advantages they offer. Among them:

• possibility to set up companies in specific industries, based on the activities of your business;
• corporate tax exemptions for up to 50 years in certain free zones;
• full repatriation of profits and capital transfer availability;
• 100% foreign ownership, no matter the entity you incorporate;
• possibility to register various business forms.

Business expansion is also available in both mainland and each free zone. You can go for limited liability, respectively, free zone companies, but you can also opt to open a branch office in Dubai or in any of its free zones, if you want more control over it.

Taxation, a good reason to start a business in Dubai

While in other countries taxation is the best reason to open companies, in Dubai, it is one of the reasons to do so. In the past few years, the UAE Government has taken measures to align with international financial standards, which implies the introduction of corporate and value added taxes. The rates are quite low: 9, respectively 5%, so you need to consider this aspect when starting a business here. It is also a good idea to discuss tax legislation with a local service provider, such as BridgeWest Dubai, to get accurate information.

Low labor costs and access to skilled workers

In every corner of the world, doing business relies on workforce. This is also the case in Dubai, however, hiring employees here has its advantages. Among those worth mentioning are:

• the possibility to hire skilled employees;
• access to local and foreign talent;
• no personal income tax;
• reduced social security contributions for the employer – 12.5% on the gross salary of an employee.

Also, the procedures for hiring foreign employees have been simplified, as work and residence permits for expats are issued much faster than before – 2 weeks on average.

Infrastructure, a key aspect when opening a Dubai business

Infrastructure is essential when choosing a place to run a business, and Dubai is outstanding from this point of view. The local land transportation system is one of the best in the world, while for international trade, the maritime and air infrastructures are the most important. The last two ensure connectivity with the rest of the world, no matter if you want to import or export goods to Asia or Europe.

Dubai is commended for its economic stability

It’s been years since Dubai has ranked first in many reports in terms of economic stability. The local government has invested a lot of money into offering great administrative services and attracting foreign investments, which has contributed to the Emirate being commended for its results. Furthermore, the AED is one of the most stable currencies in the MENA region. The Dirham is also pegged to the USD, which improves confidence among investors who can benefit from predictability when doing business here.

These are only a part of the advantages of starting a business in Dubai, as the Emirate has many more benefits to discover once you start operating. When gathering all of them, this city becomes a landmark for success.

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