Dubai has a thriving business environment that provides a good base for setting up a business in Dubai and international business. The foreign workforce coming to the city has created a need for businesses catering to their needs. A good location, favorable climate, moderate taxation and modern infrastructure are some of the factors that have contributed to the upsurge in demand for services in Dubai. Some of these factors are also applicable in other parts of the world. Some expatriates have found the employment opportunities available here to be excellent.
Determine ownership type. Choose a commercial entity, such as a partnership, limited liability company (LLC), company, partnership, sole proprietorship, or corporation. The choice depends on your location and status as an expatriate. In case you are not a UAE national, choose free zone companies instead.
Determine ownership type. Choose your trade name. Trade names must be registered with the government. Your business should have a unique tax identification number or TIN. If you are not a UAE national, you can also open a bank account with a bank outside the country and obtain a UAE certificate of registration with a Trade Registry business or with the Internal Revenue Services (IRS).
Setting up a business in UAE is not a problem due to free zones. The free zones allow the setting up of a limited company or sole proprietorship offshore. However, the registration process is time consuming and the operation costs are high. A better alternative would be to set up a trading activity in free zones by utilizing a commercial bank offshore. The business owner will need a sponsor who is a UAE national or with the relevant approval from the Dubai foreign trade mission.
Setting up a business in Dubai does not require you to obtain a business license from the Dubai authorities. You are allowed to open a business under the name of your choice. You can conduct business as long as you comply with all the legal requirements. You can even change the name of the company multiple times and avoid tax charges. However, a business license is mandatory to trade.
You can set up a company in two options. One is through a free zone and the other is through a tribal sponsor. A business license is required for trading in the free zones, which is one reason why many entrepreneurs choose to set up businesses in the traditional markets of Abu Dhabi and Dubai. You can get a suitable sponsor for your business if you are setting up a business in Dubai through either a tribal sponsor or a free zone business centre. Sponsors in the free zones have more flexibility than entrepreneurs in Dubai's traditional local markets.
Setting up a business in Dubai also has its benefits. It attracts many international entrepreneurs who prefer to set up their businesses in the free zones of the UAE. Besides, investors in the traditional markets of the UAE are attracted by the relative stability of the business climate in Dubai. Still on the positive side, new entrepreneurs are drawn to the Dubai market due to the free market system, good education system and a supportive and hospitable society.
On the contrary, setting up a business in Abu Dhabi requires entrepreneurs to observe some legal obligations. You have to register with the Dubai Financial Commission (DFCC) and abide by its regulations. On top of that, business owners have to pay a certain amount of taxes, depending on the emirate in which they intend to set up their business. In addition to all these responsibilities, new entrepreneurs are required to secure a visa for businessmen, which is free of charge provided that the expiry date coincides with that of the business owner. This way, they have better chances of doing business freely in Dubai.