4 Good Reasons to Start a Business in Dubai
Do you have a business plan abroad? When it comes to the creation of offshore companies, some countries are much more attractive than others. This is the case of Dubai, which has interesting tax, economic and legal advantages, and which appeals to entrepreneurs from all over the world. A quick overview of the good reasons to start a business in Dubai.
- Political, Economic, and Banking Stability
The other main reason to embark on the creation of a company in Dubai is the stability of the country. Economically, first of all, the United Arab Emirates are renowned for their growth, dynamism, and international influence, with a very low unemployment rate (0.5% in Dubai in 2018) and a GDP per capita among the highest in the world. In addition, at the political level, the country is particularly stable.
Finally, in banking, it should be noted that local banks are very inclined to support foreign entrepreneurs in creating an offshore account. The banking network is very broad there, with banks from all over the world, and the services and products offered are geared towards offshore companies, which will greatly simplify the creation of your business in Dubai. Moreover, Business Club Dubai offers a networking platform for your business where you can host your corporate events and expand your business network.
- Legal Framework
The UAE government seeks to stimulate the economy through foreign entrepreneurship. To achieve this, it revised its legal framework for foreign entrepreneurs wishing to start a business. So, with the exception of criminal law, there is a totally different set of rules and regulations for foreign nationals.
Administrative formalities are minimal, and all legal procedures are expedited. There is little or no paperwork required, and the licensing and registration process is very straightforward. This allows entrepreneurs to register very quickly and start their business in a very short time.
- Tax Exemptions
One of the main challenges in starting a business in Dubai is developing an understanding of tax laws and maneuvering your business so that you have minimum taxes to manage.
The UAE thus offers different types of business ownership structures and tax categories. One of them stands out as free zones with 100% tax exemption. There is 0% corporate and income tax and a 30% tax reduction on international film and television production expenses. This means that you can keep the profits of your business without having to pay any tax to the government. Just make sure you register your businesses for free zones.
All over Emirates, there are several free zones such as Dubai Free Zone, Abu Dhabi Freezone, Ajman Free Zone among others. Each of them has different positives. You need to identify the location that best suits your business proposition and then select one.
- Open Trading System
Another reason for investors to start a business in Dubai is the Open Trade system. The city is a member of the World Trade Organization (WTO). This gives early-stage companies some security to enter the international market. Dubai works closely with global business leaders such as Europe, parts of North America, and much of Asia and Africa. In addition, Dubai encourages open trade relations. Indeed, it is located at the border of European continents and Asian and African regions.