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In a matter of a few short decades, Dubai has managed to become the center of the world. Whether in terms of business and commerce, travel and tourism, technology and research, or by any other measure, Dubai has it all.
For people looking to set up a base for their business, Dubai offers all the features that you could possibly need. One of the most important factors when setting up a business is access to markets. Dubai, being located in a fantastically central location, gives you access to all parts of the world and it also has incredible local market potential. Before setting up shop in Dubai, here are a few things to keep in mind.
One of the biggest challenges for businesses is taxes. In most countries around the world, there are a lot of different taxes that businesses have to pay and this impacts their profitability. Moreover, it is also a lot of work to process all these taxes and it is quite a chore to keep on top of these things year after year. Dubai is renowned as being a country with no taxes, and while this is true to some extent, it does depend on the kind of business you are operating. Moreover, there are plans in place to change the taxation structure in June 2023. Before you start a business in Dubai, look into how you can set up your organization in a way that will save you the most when it comes to taxes.
Dubai also shares a common trend in the Middle East where you need to have a local business partner to be able to set up a business. Again, because Dubai wants to attract international investors, they have made some slight changes to this rule. There are also several free zones where you can be exempt from this rule entirely. Also, if you want to start a digital business, you might need to apply for an e-commerce license in Dubai to make your business legal. Even if you are setting up a business as a freelance service provider, you might need e-commerce registration. Generally, registration is very quick and easy, and in Dubai, you can easily tackle the entire process in a matter of hours. You can even do it online.
One of the biggest benefits of doing business in Dubai is the refined infrastructure. From the very beginning, Dubai has been focused on creating a favorable environment for international investors to do business in. One of the main features of Dubai is the excellent security that it offers. Whether you are a business or an employee, safety and security are all but assured in this part of the world. Government policies are in place to help businesses thrive and this creates an environment where you have big international players available and ready to participate in your business.
Dubai is slightly different from other countries in that it has specialized zones for specific kinds of business. For instance, there is a specialized media city, finance city, and even IT city for businesses that belong to that niche. Before you set up a business, it could help you a great deal to look into what the best physical location for your business would be.
Businesses that are located in these specific districts enjoy certain benefits that are available only for those industries, and only for businesses in that specific area. Moreover, in some cases, you might not be allowed to set up a business outside of the designated area.
There are many different structures that you can choose for your business in Dubai. One of the most popular choices is to create a limited liability company. This affords you a number of benefits and makes it easier to operate, but it also depends on the specific industry that your business operates within. If you are working in a free zone, for instance, you might be better off adopting a different structure.
Dubai has two major ‘zones’ where businesses can operate. One is known as the ‘free zone area’ the other is known as a ‘mainland’ area. Free zones are specifically designed to help international investors set up their businesses. They offer a range of tax benefits and certain kinds of businesses are only allowed in the free zone areas. If you happen to have a local investor onboard, you can look into setting up your business in a mainland area.
Even though Dubai has come a long way from what it used to be just a few years ago, it is still far from being saturated. There is a lot of potential in this part of the UAE and it has everything that a business could need from its environment. If you want to set up a business in a place where you will have plenty of room for growth, a lot of support, several financial benefits, and easy access to resources, Dubai may just be the right option for you.