You may have noticed that more entrepreneurs are choosing to create offshore companies. In this globalized economy, an international setup is becoming more frequently observed and, frankly, more beneficial.
If you are curious about building a business in another country, read on for four reasons smart entrepreneurs are establishing their companies in Dubai.
1. Dubai free zones are appealing.
For entrepreneurs looking for an ideal location to set up their company, there is nowhere better than in one of Dubai’s free zones.
Currently, over thirty free zones are open in Dubai catering to different industries, including the DMCC, JAFZA, DAFZA, Dubai Design District, Dubai Internet City, and Dubai Media City. By opting for company formation in a Dubai free zone or another comparable free zone, you can receive an abundance of benefits. These include:
- 100% tax exemption on personal or corporate income or gains
- 100% ownership for investors despite your nationality and residence
- 100% repatriation of capital and profits
- Exclusion from all import and export duties
- Exemption from corporate tax for 15 years
- No capital deposit needed
When choosing to set up a business in a Dubai free zone, it is essential to research the specific benefits of each one as they are tailored for distinct types of industries and enterprises.
2. Dubai offers entrepreneur-friendly policies.
Even though Dubai (and the UAE in general) is already one of the world’s leading hotspots for small business owners, as more companies are moving their setups to or opening in it, the policies and incentives for entrepreneurs are becoming more and more generous. In fact, there aren’t many places in the world that can boast such entrepreneur-friendly policies as Dubai.
When you consider the tax advantages, 100% foreign ownership, allowed anonymity concerning business dealings, and flexible banking options, it is easy to see why so many smart entrepreneurs are starting a company in Dubai.
Not only does Dubai’s strong economy aid businesspeople in scaling their business quickly, but it also ensures that high-quality talent is attracted and moving to the emirate. The easy availability of visas (such as the new extended residency visa) is excellent news for all business owners as it encourages both seasoned professionals and newcomers to take the leap and call Dubai their new home.
3. Foreign business owners are welcome.
There is no denying that the Dubai government has a clear focus on the quality of life of its citizens. By opting for company formation in Dubai, you too can become a part of this society. Plus, with the increase in female-owned businesses, there has never been a better time to be a female entrepreneur in Dubai.
Considering that almost 90% of the residents in Dubai are expats, it is safe to say that this is a welcoming community for those who are from other parts of the world. By opting to base your company in Dubai, you will be eligible for a UAE residency visa enabling you to rent property, efficiently move in and out of the country, and several other benefits.
This is precisely why the lifestyle benefits of setting up a business in Dubai are not lost on smart entrepreneurs. With the assistance of business setup experts, ensuring your trade license requirements are met becomes a stress-free process as well.
4. Dubai’s future looks even brighter.
At this point, it may seem like Dubai is at its peak when it comes to the entrepreneurial environment; however, that couldn’t be further from the truth. With the upcoming Dubai Expo 2020, the city state is only going to increase its prestige as an international business destination further.
The Expo 2020 is going to bring a significant boost to both current businesses in Dubai, as well as the overall entrepreneurial climate in the region. It is expected to generate new business opportunities, create jobs, yield economic benefits, and increase the prominence of Dubai on the world stage.
Have you ever considered forming a company in Dubai? If so, what challenges or hurdles are you currently facing? If not, what is stopping you?
Let us know your thoughts on this topic in the comments below!
Raj Herry is the Founder and Chairman of Flying Colour Business Setup Services. His extensive experience comes from more than 15 years in the field of company incorporation for Dubai Mainland, all Free Zones across the UAE and offshore companies worldwide. He also owns several business centres offering furnished and ready-to-move offices in Dubai.