Business Setup in Dubai

Business Setup in Dubai

Business Setup in Dubai

Over the decades, Dubai has grown phenomenally and now it is offering infinite opportunities for investors and attracting business owners to pay attention to the business setup services in Dubai.

During the pandemic, most of the world is struggling to restore stability but UAE instantly adjusted its resources and products to meet the never-ending demands of business owners in Dubai in this challenging period.
Business Setup in Dubai

Setting up a business in Dubai has multiple advantages since UAE is one of the leading business hubs in the world. Dubai brings the opportunity to set up a business with its sophisticated network connectivity, tax-friendly environment, top-notch infrastructure, cost-effective measure, and easy documentation. Not only this, but Dubai also has a very diverse population as more and more expatriates are moving to indulge in the magnificence of the UAE.
If a person is planning to set up a business, he should also check the business setup services in Dubai and know about the laws and jurisdiction of the country. The 3 leading jurisdictions to form a company in UAE are mainland, free zone, and offshore.
Mainland companies are companies that are onshore and which are licensed by the Department of Economic Development (DED). Mainland business entities can operate a business in the local market as well as outside the UAE without any restrictions. Having a Dubai Mainland license lets you enjoy maximum freedom and gives you the flexibility to function your business.
Types of businesses that can be set under the mainland is Sole Establishment, Joint Venture, LLC, Public and Private Joint Stock Company, Civil Company, Branch of a foreign and Free zone Company, and Branch of a local or GCC Company.
There are certain government rules and regulations which you have to follow to function as a mainland company in UAE.
One of which revolves around company shares. 51% of the total share of a commercial business will be owned by a UAE national and the remaining 49% is owned by a foreign investor. This law does not apply to Free zone businesses, complete foreign ownership businesses, UAE nationals – GCC partnership firms, and local ownership business concerns.
Free zone
Foreign investors when forming a company in a Free zone enjoy the benefit of 100% business ownership. Free Zone Authority (FZA) is the governing body responsible for all the activities related to a Free Zone company like the operation of a business and license. The governing laws for UAE free zone companies are different from the laws applicable to mainland UAE companies.
About 40 free zones in UAE offer special tax and customs which makes it an ideal place to operate a business. There are many advantages to setting up a business in a free zone area, it gives the comfort of 100% foreign ownership, 100% direct tax exemption, 100% repatriation of financial gain and capital, and absence of foreign exchange restrictions. The infrastructure in the free zone is also great, providing a refined work environment, experienced and skilled labor to choose from.
The major free zone jurisdictions are, Dubai South Free Zone located near Al Maktoum Airport and proposed venue for the international event – Dubai World Expo 2020, Jebel Ali Free Zone (JAFZA), Dubai Silicon Oasis (DSO), and Dubai Healthcare City.

Offshore companies

Offshore companies are companies developed in a different jurisdiction with its parent company based in another country, offshore conduct its operation outside of the location of its origin. It may not be a physical company but it still is a registered company serving the purpose of minimized tax payment.
An offshore company offers multiple benefits to foreign business investors, some of which are, zero import and export duty, 100% tax exemption, 100% foreign ownership, investor-friendly laws and regulations, full repatriation benefits of capital and profits, business anonymity, and confidentiality on monetary matters, hassle-free international transactions, the scope of business expansion, offshore company permits a single shareholder, the minimum capital prerequisite is not necessary.

Ownership to Foreign Investors

The government has recently brought a change to company laws and it now allows foreign businessmen 100% ownership. Now, not only will free zones offer 100% ownership to investors from outside the country but now it applies to the mainland businesses as well. A business person no longer has to find a sponsor in a country to start a business. The government has succeeded in attracting foreign investors globally and invites them to come and set up a business in Dubai or anywhere suitable in the country.
To start and operate a business in the UAE, it’s mandatory to have a trade license provided by the UAE economic government. The three mandatory trade licenses are:
Commercial License: Commercial license is required for those who are involved in any kind of trading activity.
Professional License: Professional license is required for investors involved in professional offering services in their profession for example artisans, craftsmen, etc.
Industrial License: Industrial license is necessary for professionals performing industrial and manufacturing activities.
All startups and established businesses in Dubai or anywhere in UAE must be licensed as operating a firm without a license is illegal and you would be charged anything from Dh5000 to Dh50,000 if you’re running a business without a license. Selling from home is also illegal, if you want to run a business independently, you will have to set up a company, have premises, and pay for a license and the license must be renewed every year. For a better and convenient business setup experience, you can look up several business setup services in Dubai and choose which ones are required for your startup.

Business Environment in UAE

Earlier, the source of UAE’s income solely was through crude oil, today even when the prices of it descended and when the whole world is facing challenges due to the global covid pandemic, the country’s economy remained stable. The UAE has an open economy with a high per capita income and a substantial annual trade surplus.
The UAE’s investment climate is now becoming milder for foreign direct investors. The favorable conditions provided by the UAE government to its people especially to the investors are beyond expectations. Not only do the geographical location and infrastructures make it an ideal place to invest here but the government policies are yet another reason which makes UAE worthy of setting up a business here. Initially, the government rules and regulations may seem a bit demanding and complex and this is where the business consultants take part, they are updated about all that is required to set up a business, they make your work easier and assist you with all business setup services in Dubai or anywhere in UAE
Eagle Wings UAE
Are you looking for business setup services in Dubai? If yes, you have come to the right place. Eagle Wings UAE provides a broad range of business setup services in Dubai and UAE. From Trade License, finding a Sponsor, and Brand Protection to Company Liquidation, Bank Account Opening, and PRO services, Eagle Wings covers all and serves as a helping hand because we consider our client’s success is our biggest reward.
Business setup and company formation are easy with the help of the authentic and right professionals. Whether you are new to start a business or you already have a company in Dubai, Eagle Wings UAE is all set to give a boost to your start-up. We, at Eagle Wings, follow just the right steps and offer the most economical and timely business setup services in Dubai or anywhere in UAE.

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