The United Arab Emirates (UAE) and its commercial capital, Dubai, have been attractive destinations for entrepreneurs and investors worldwide. They offer a favorable business environment, excellent infrastructure, and a strategic location. However, many myths surrounding a business set up in UAE and Dubai can deter potential investors. In this article, we will explore five such myths and debunk them:
Myth 1: The Process Is Complicated
The UAE and Dubai have taken several measures to streamline their business setup processes to attract more foreign investors. The UAE government has launched various initiatives and programs to facilitate business registration and licensing. The Dubai government has established several free zones that offer simplified procedures for setting up a business, with 100 percent foreign ownership, tax exemptions, and customs benefits.
Additionally, the government has digitalized many of its services, and investors can complete most registration and licensing processes online. Therefore, setting up a business in the UAE and Dubai is not as complicated as it may seem.
Myth 2: You Need a Local Partner
In the past, foreign investors had to partner with a local sponsor or partner to set up a business in the UAE and Dubai. However, the UAE government has introduced several reforms that allow 100 percent foreign ownership for certain business activities in specific sectors. For example, in Dubai, free zones, such as Dubai Multi Commodities Centre (DMCC), Dubai Silicon Oasis (DSO), and Dubai Airport Free Zone (DAFZA), allow full foreign ownership.
And the UAE government has recently announced that it will allow total foreign ownership for all companies in the UAE. So, foreign investors can set up a business in the UAE and Dubai without a local partner.
Myth 3: You Need a Physical Office
Many investors believe they need a physical office for a business set up in UAE and Dubai.
However, the UAE government has introduced several initiatives that allow businesses to operate without a physical office space.
For example, the Dubai government has launched the Virtual Company License, which allows businesses to operate digitally without a physical office. This license is good for one year and can be renewed annually. Therefore, investors can set up a business in the UAE and Dubai without a physical office space.
Myth 4: The UAE and Dubai Are Not Suitable for Small and Medium-Sized Enterprises (SMEs)
Many investors believe that the UAE and Dubai are suitable for large corporations only and not ideal for small and medium-sized enterprises (SMEs). However, SMEs form a significant part of the UAE’s economy, accounting for over 94 percent of all companies. Their governments have implemented several initiatives to support SMEs, such as the SME Development Program, the Mohammed Bin Rashid Fund for SMEs, and the Dubai SME 100.
The Dubai government has s launched several free zones that cater specifically to SMEs, such as Dubai South, Dubai Science Park, and Dubai Production City. So, the UAE and Dubai are suitable for SMEs, and there are several initiatives and programs to support their growth.
Enjoy Low Taxes, High Profits, and No Excuses
Setting up a business in these locations is easier than initially thought, and there are several initiatives and programs to facilitate the process. Foreign investors do not need a local partner to set up a business; they can operate without a physical office space. While the UAE and Dubai offer several tax incentives, certain sectors are subject to corporate taxes. Finally, the UAE and Dubai are suitable for SMEs, and there are several initiatives and programs to support their growth.
Startup Zone is committed to supporting their business set up in UAE and Dubai. Our skilled professionals possess extensive expertise in the local market and a profound comprehension of the obstacles and prospects businesses encounter in the UAE. Get a quote now by visiting our website and clicking Get a Quote Now!