Dubai, United Arab Emirates, 13th Jan 2023, King NewsWire – Starting a business as a foreigner in another country takes a lot of risks and effort. However, countries like Dubai offer a conducive business environment, making it relatively easy for foreign nationals to set up a business within the country.
In this article, we will guide you in starting a business in Dubai as a foreigner.
We will cover the following topics:
- Why start a business in Dubai?
- Can a foreigner start a business in Dubai?
- Benefits of starting a business in Dubai for foreigners
- Types of business licenses in Dubai
- Steps to start a business in Dubai as a foreigner
- Cost of starting a business in Dubai
- How Creative Zone can help
Why start a business in Dubai?
Dubai’s stable economy has earned its reputation as one of the world’s largest offshore businesses in the world. The Emirate has diversified markedly in recent years as it has continued its strong growth.
In addition, the government of Dubai offers business-friendly policies, and numerous incentives for entrepreneurs to get started in Dubai.
Overall, Dubai offers low operational and logistical costs, low tax rates, state-of-the-art facilities, world-class healthcare and education, and a high-quality standard of living.
Can a foreigner start a Business in Dubai?
Yes. As mentioned, Dubai offers business-friendly policies for foreign investors to incorporate their business here. In fact, the UAE’s economy now allows 100% percent foreign ownership of companies in Dubai.
However, starting a business in Dubai can have complexities, especially if they are done outside the UAE. This is where company formation specialists, like our team of business experts from Creative Zone, can help you – they can guide you throughout the process to ensure a seamless and low-cost company formation.
Benefits of Starting a Company in Dubai
100% foreign company ownership. To attract more foreign investors, the UAE has allowed full company ownership for foreign investors.
0% income tax. Individuals are exempted from any kind of personal income tax.
Low tax rates. Traditionally, companies are exempted from any corporate income tax. However, starting the fiscal year of 1 June 2023, a 9% corporate income tax will be imposed on companies with income above AED 375,000.
Strategic location. Foreign investors can take advantage of Dubai’s geographical location. The Emirate is strategically situated between the East and West, making it a center of business trade and economic activities.
World class infrastructure. Foreign investors can take advantage of Dubai’s state-of-the-facilities. In fact, the UAE ranks as the world’s third largest destination for infrastructure investments.
Diverse business options. There are over 20 free zones in Dubai where you can incorporate your business. Depending on your business activity, you can choose among these jurisdictions for the perfect spot to place your business.
Types of Business licenses offered in Dubai
There are several types of business licenses that are offered in Dubai. Under this, you can choose the most suitable category where the nature of your business activity can best fit in
1. Industrial License –allows businesses to perform industrial-related activities such as production, segregation, accumulation, and packaging.
Activities under Industrial License:
- Equipment and engine manufacturing
- Bread manufacturing and food industries
- Textile manufacturing
- The casting of metals industries
- Manufacture of petroleum products
- Paper Manufacturing
2. Commercial License – this license is for companies who want to buy and sell goods, commodities, and other kinds of trade activities within the UAE. This is also given to retail, construction, and real estate-related activities.
Activities under Commercial License:
- Foodstuff trading
- Retail & Wholesale trading
- Financial Intermediation
- Trading of Electrical goods
- Activities of import & export
- Building Materials trading
- Fuel & Petroleum Products
- Sale of electronic goods
- Domestic Gas Distribution
3. Professional License – this license is given to a person or a corporation that provides services and practices that rely on skills, talent, and ability.
Categories under Professional License:
- Accountants, Auditors, Financial
- Architectural Professionals
- Advertising Professionals
- Business consultants
- Entertainment Artists
- Lawyers Legal Advisors
- Management Consultants
- Information and Technology Services
- Healthcare and Medical Professionals
- Printing and Publishing
- Carpentry and Artisanal Activities
- Teachers and Educational Professionals
- Beauty Salon
- Internet and Web Designers
- Technical Services
4. Tourism License – this is for entrepreneurs who want to operate in the travel and tourism sector of the UAE.
Steps to start a business in Dubai
If you are a foreigner looking to set up a business in Dubai, here are the following procedures that you can follow:
Step 1: Register the name of the business
This is one of the essential steps in starting your business. It is important to remember that your company’s name says a lot about your business. You can choose a memorable business name that can also be used as a marketing tool.
Step 2: Obtain a business license
Once a name has been selected, the activities of your business must be determined. This will define which license(s) and what other requirements you need to obtain for your company.
Step 3: Apply for visas
Another vital step that needs to be completed before your business can start is to ensure that you have your visa in place. The UAE offers a range of visas that you can choose from.
Creative Zone can help you throughout this process to ensure that you will have enough visas for your employees.
Step 4: Open a bank account
One of the last steps towards starting a business in Dubai is to open a bank account. There are many bank accounts in Dubai that provide business banking facilities, but it can be difficult or foreigners to open accounts due to the UAE’s strict money laundering laws.
However, Creative Zone can help you in finding the best banks through our comprehensive list of strategic partners.
Cost of Starting a Business in Dubai
The cost of starting a business in Dubai usually starts at AED 12,500. However, there are additional costs to be considered, such as permits for visas, rent, or mortgage of premises, which can vary depending on your business activity.
For more information on this, you can contact our team from Creative Zone. Once we know more about your business, we will provide you with a low-cost yet efficient quote for your company.
How Creative Zone can help
As this article has shown, there are many opportunities for foreigners to set up a business in Dubai, thanks to its business-friendly policies. However, it can be complex and time-consuming for those who have yet to experience the business setup process in Dubai.
Creative Zone’s team of business experts will assist you from planning, business registration, banking support, media and marketing, legal, tax, and accounting advice, to co-working office space solutions. As a foreign investor, we will ensure you of a seamless and low-cost company incorporation in Dubai.
For more information, can call us at 800-LICENSE or you can get in touch through our socials.
Organization: Creative Zone
Contact Person: Media Relations
Address 1: Office 104-105, Level 1, Emaar Square – Building 4, Sheikh Mohammed Bin Rashid Boulevard Downtown Dubai, United Arab Emirates
Country: United Arab Emirates
Release Id: 2198