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How Entrepreneurs Can Start a Business in Dubai Free Zones

  • azraaysel 

Dubai is not only a huge tourist destination it is home to the world’s tallest skyscrapers and the highest-rated hotels. It is also growing as a major destination for businesses. The possibility of starting a business in Dubai is undeniable in this context. Dubai is one of the few Asian countries with a very strong economy. The country is full of established names and wealthy elite citizens. Therefore, every business organization in Dubai has a very high chance of growing.

Although the country has some domestic industries, it is also a major attraction for foreigners. In recent years, several overseas investors have acquired gold by starting Dubai-based companies. Because the people here are very rich, the market is wide and healthy. There is a very small, almost insignificant chance of failure. Chances are, any well-searched and well-run business in this part of the world will turn out to be huge profits. Dubai is also a land of abundant resources. Of course, it is a rich source of oil and other natural sources. The country continues to outperform other economies by exporting its oil. Moreover, there is a huge supply of cheap labor thanks to the availability of nearby countries like India.

Why Investors Choose Dubai for Company Formation

Investors also want to set up a company in Dubai to take advantage of the tax benefits. The tax system is very lenient for business people in this country. If it’s another country, foreign investors have to return most of their profits to pay all taxes. However, the same businessman does not have to pay corporate tax in Dubai. Therefore, the country is very attractive to any investor in terms of financial sustainability.

The infrastructure in the country is also very impressive. Roads and highways are smooth and free from traffic jams. The management system is strong and the facilities are good. Transport and travel is never a problem! The rapid flow of traffic and the availability of cheap labor and materials have made the business more profitable. The country is flooded with tourists all year round. Therefore, there is a strong international market ready to buy your products or use your services. Hence, starting a business in Dubai is always a profitable venture.

Foreign investors are also eyeing international trade. Although Dubai’s local market is very strong, businesses need to continue to thrive and generate revenue from offshore countries. In this regard, it can be said that Dubai has a healthy relationship with offshore countries. It is also connected to several countries via ports and other channels. Therefore, in this part of the world, it is very easy to generate foreign currency income.

However, to start a business in Dubai, you have to go through some formalities. The best way to do this is to seek the help of a Dubai based professional. Since foreign investors are not very familiar with the country’s laws, your help is very helpful!

Requirements for Starting a Business in Dubai

A verified business address from Dubai City Council is required when opening a business in Dubai. Office space requirements for starting a business in mainland Dubai may vary depending on the type of license the investor is seeking.  It is the investor’s responsibility to ensure that a valid office lease agreement is in place at the time of applying for the license for a company in mainland Dubai. Professional business consultant company’s professional advisors will assist their clients in selecting the most suitable business incorporation solution. Moreover, guide them through the complete procedure of incorporating a business in mainland Dubai and registering a business with the Dubai Economics Department.

Type of License Available in Dubai Free Zone

Trading License

This type of license allows the company to engage in commercial activities such as buying, importing, exporting and selling limited quantities of goods and merchandise.

General Trading License

This type of license allows the company to trade all types of goods, with some exceptions for prohibited goods and products that require special authorization.

Service License

This type of license is granted to companies engaged in consulting, accounting, etc.

Industrial License

This type of license entitles the company to manufacture, package and process in the Dubai Free Zone.

Key benefits of Free Zone Company Set up in Dubai

Here are some of the benefits which entrepreneurs can avail themselves by setting up a business in Dubai Free Zone:

  • 100% foreign ownership (no local partner or sponsor required)
  • No corporate tax for 50 years and can be extended for another 50 years
  • Easy recruitment, work permit and visa procedures
  • Import duty-free goods into the free zone
  • Ability to own property
  • Business secrets are strictly guarded
  • There is no limit to doing more than one activity
  • Moderate renewal fee for business purposes in Dubai Free Zone
  • Allowed to open a bank account in Dubai
  • You are free to close the deal at your discretion