In the past few decades Dubai has emerged as the business hub of the Middle East. Situated at the strategic north-eastern region of the UAE Dubai has marked itself as one of the fastest-growing economies of the world with real estate, tourism, trade, and financial services contributing extensively to its GDP. It has attained the reputation of being the biggest trading hub in the U.A.E. and it is mainly due to the availability of outstanding business locations and a business friendly environment― ease of setting up businesses, supportive operating conditions, asset protection, limited liability, utmost privacy and large tax exemptions.
Apart from the above, the unique policies of liberalization offered by Dubai has provided businesses a tremendous growth trajectory. Dubai offers an open market trading environment to businesses with no hidden trade barriers, restrictions, or quotas that may hinder their growth. Perhaps the best part is Dubai can easily be accessed from both air and sea what makes it the most business-friendly location in the middle-east.
In the last three decades, Dubai has witness tremendous development and took a leap from an oil-exporting economy to an extensive business economy. No doubt, Dubai has earned the reputation of being the best choice of all kinds of business owners and foreign investors. Due to its strategic location and business-friendly government policies, Corporates have shown immense interest to set up their businesses in Dubai.
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Certainly there are many reasons to set up a business in Dubai and setting up a business here is a simple and involves a smooth process provided that you have the contacts who may help you understand the process and its requirements. All it requires is due verification of documents which is followed by a few legal formalities and then business owners are all free to set up their businesses in Dubai.
The following steps are involved in the process of setting up a business in Dubai:
- The first and the most important requirement is to get a local sponsor. The local sponsor has to be a U.A.E national.
- Once you get a sponsor, the next step is to obtain a NOC from the local sponsor.
- Declaration of Memorandum of Association (MoA), which includes the basic conditions on which the company or the firm will be carrying out its business. For example: The business the company is involved in, Capital investment, Issuance of shares, etc.
- Initial approval from the Department of Economic Development (DED), Dubai.
- After the DED grants initial approvals, the company is required to get itself registered under a unique trade name.
- Once the trade name of the business is registered, the owner/ president is required to arrange a physical office space for the company.
- The next step is to make application for a trade license.
- Once a trading license is received, the business will be set up within a week.
It is perhaps one of the most critical decision that a business owner has to make while planning to set up a business. There are a few aspects that are required to be considered:
- You get complete ownership of your company or firm.
- You are able to avail the maximum tax benefits.
- The location is convenient as well as economical.
- The location supports the strategic goals of your business.
In general, the Dubai Mainland is an idle point for the Entrepreneurs starting a business related to the following niche of businesses:
- Real Estate
- Hospitality
- Education
- Retail
The popular Business Locations in Mainland Dubai that have become the financial points of the Emirate:
- Shaikh Zayed Road
- Business Bay
- Jumeirah
- Al Qusais
- Al Quoz
- Deira
- Bur Dubai
- Al Karama
There are mainly two areas in Dubai where one can set up his or her business. The costs vary considerably for these locations. The other factors that have their impact on the costs are the kind of business license you desire to obtain and the niche of business you want to set up/ company you want to form.
- Applicable rents for setting up an office in Dubai
- Department of Economic Development (DED) Fee
- Applicable charges on acquiring a mainland trade license
- Administrative Fee
- Contracting license charges (One-Time)
- Fee charged by the real estate broker
For LLC companies, the owners may also have to incur investor visa charges and employee visa fees if required. The investor visa costs in U.A.E. costs about 3200 AED which also includes basic insurance, medical and Emirates ID whereas on an average, the cost of hiring a foreign employee costs somewhat in between 7000 to 7500 AED which includes insurance, medical facilities and residency card.
To conclude, Dubai as a business hub has exciting investment opportunities for you and all it takes is setting up a business in Dubai which we make easier and hassle-free. Whenever and in whatever process you need any assistance in regards to setting up a business in Dubai, please feel free to contact us!