It is widely known that Dubai’s local population has a large percentage of expatriates. Many of them are business owners who are operating their business in this region. Starting a business in Dubai is considered a profitable investment because the region offers plenty of business opportunities.
Starting a Business in Dubai Free Zones
Dubai offers a free-trade zone for expatriate investors. The aim of establishing this zone is to offer customs duty benefits and tax concessions for those investors. This zone is divided into more than 30 free zones that operate under different authorities.
Some of them are Dubai Internet City, Dubai Science Park, Dubai Media City, Dubai Silicon Oasis, Gold and Diamond Park, and Dubai Airport Free Zone.
Setting up a business in one of those free zones gives some benefits to the business owners.
- 100% of ownership for business owners regardless of their domicile and nationality.
- Import and export duties exclusion.
- 100% tax exemption on corporate or personal income.
- 100% repatriation of profits and capital.
How to Start a Business in Dubai
Starting a business in Dubai is easier to do than starting it in other Arabian countries. Before you start a business in this country, it is better for you to contact one of the Dubai business consulting firms.
The business consulting firm will make the process of setting up the business go smoothly. This firm does not only offer guidance, advice, and assistance to set up the new business, but also helps you in developing your business so that your company will have a large market share in the local market.
To start a business in this region, you need to:
- Create a Trade Name and Deciding on the Type of Legal Entity
The first thing you need to do is creating a trade name and deciding on the type of legal entity. If you set up a business in the free zones, you can choose one of the two types of legal entity, they are FZ LLC (or FZ Co.) and FZE.
The trade name you make must be a new name or not have been registered before. The name must also be followed by the legal form of your company, such as FZE. Another thing to remember is that the name needs to be compatible with the legal status and the required type of activity.
- Apply for a Business License
When you are applying for a business license, you need to make sure that you apply for the right license. There are several trade license types in Dubai, for example a commercial license is for companies that buy and sell products.
- Choose the Office Space
You will need an office space to set up a new business. If you start the business in Dubai Airport Free Zone, for example, you can buy or lease one of the office types, such as Executive Office Packages, Smart Desk Office Packages, and Office Packages.
- Prepare the Documents
To set up a business in Dubai, you need to prepare various documents. Some documents that must be prepared are application form, business plan, and passport copies.
Setting up a business in Dubai, particularly in the free zones, is not that difficult. However, it is recommended to hire a Dubai business consultant so that you will be able to make the process much easier to do.