UAE is an excellent place to start a business, as compared to North Africa, Middle Eastern, and other countries in the world. Many free zones offer excellent opportunities to start a business in Dubai. Other than this, business activities are more feasible due to strategic location, low import duties, no taxes, and excellent infrastructure. It takes barely eight days and some procedures to set up a company in Dubai, the UAE. In this article, we have demonstrated in detail the Dubai business environment and why Dubai is the best place for business startups.
UAE has significant reforms, commercial disputes, and contract enforcement. But there may be some kinds of hurdles, but they can easily tackle issues with some efforts and management strategies. UAE is the fastest growing economies in the world. It is a fertile and promising land for the extraordinary and rapid growth of the business startup. Many investors are considering the UAE as a top spot for business setup, and there are many reasons for this consideration.
Start a Business in Dubai
1- Strategic Location for Business in Dubai
Location is crucial for the growth and development of business. UAE is offering an excellent combination of logistic facilities, residential areas, essential services, and transportation links. UAE is easy to access by the majority of economies. There is excellent transportation of various goods between different regions and specifically in Africa, Europe, Asia, and the Middle East.
UAE is enjoying an excellent strategic location between Africa, Europe, and Asia. And many Chinese business authorities are using UAE as a trading hub in Africa. Indian traders are also accessing Emirates for trading with the world as well as, Latin Americans see UAE as a launching platform to the South Asian countries. Moreover, Western nationals are also using UAE, as excellent trading and business startup hub for the Middle Eastern countries.
There are 1000 flights to various countries from UAE weekly. Along with easy access to the Middle East and the GCC market. While Dubai is a cosmopolitan city in the UAE, and many people are visiting this place for shopping purposes. Sharjah international airport is in the vicinity of free zones. It is the premier place for attracting many foreign investors for business in Dubai.
2- Variety of Business Premises in Dubai
UAE is providing excellent infrastructure activities and is offering massive respect to the various company formations. That is captivating the renown investors throughout the globe. There are many options to set up companies such as offshore, mainland, or free zones. Moreover, there is no limitation to the company set-up types. And even there are many options to choose from in the free zone company formation.
3- Social and Political Stability
There has been a remarkable social and political stability in the UAE. That is an excellent factor to promote business startup, its growth and stability. UAE is federation of 7 Emirates, and each is having its ruler. That is making it an exceptional country in terms of management and stability. The policies of tolerance, and openness, in the country, are the main reason behind social harmony. The political stability that is prevailing all over the UAE; other than this, crime rates and violence are also lowest in the UAE. That is also contributing as a point to promote business activities in this region.
4- Ease of Doing Business in Dubai
Globally, the UAE ranks 11th in the category of ease of doing business in Dubai. In the report of the world, the bank published in 2019, UAE is number 1. For providing excellent business opportunities and favours. Moreover, the country is ranking as 1st for access to electricity. Rank 2nd for paying taxes. 5th for efficient dealing with the construction permits. 7th for registering properties, 9th for enforcement of contracts, and 15th for protection of minority investors. That is an excellent approach for Dubai business environment.
5- Protection of Intellectual Property Rights
UAE has maintained excellent protection of trademarks, intellectual property rights, and strict laws regarding piracy. Since its formation, UAE is representing an accommodating, and rapid approaches to come into the terms with universal acceptance. Internationally recognition of corporate laws. And has been successful for standing shoulder to shoulder along with developing, and developed countries in the world.
Tremendous economic growth and stability observed in UAE in a short span. It is leading to excellent investment opportunities. In legal systems, social, and human development, infrastructure, tourism, technology, and communications. That is a unique component of the Dubai business environment.
UAE quickly realizes that universal accommodation laws and regulations are essential. As well as, corporate affairs must get acceptance. So, it is continually putting rewarding, and successful efforts, for implication, and centralization of the legal system in the country.
UAE is aware of the benefits and vitals of being equipped with international treaties intellectual property rights. Trading agreements, and corporate investment along with its excellent exposure to the global communities for business startup and business formation.
Special programs for Business in Dubai
At present, UAE has 50 bilateral investment treaties, and more than seventy-five bilateral tax agreements. With its corporate entities, and strategic partners across the globe. Moreover, there will be many multilateral and bilateral agreements in the future for business startup and business formation opportunities.
UAE emerges as flagbearer when it comes to the implication of intellectual property rights. Their enforcement, and execution and at the present country is a signatory to all significant treaties and IP conventions. Also, there is an execution of local laws relating to the first local laws governing IP enforcement. And intellectual properties for business in Dubai.
Ministry of Economy of UAE is also having a prompt and efficient patent, and trademarking office. The patent and trademark office (PTO) is a central unit. It deals with domain names, designs, copyrights, trademarks, and patents. It is providing exceptional online services for all these actions. There is completely digitize and is following the international standards for business formation and business setup.
6- No Corporate Taxes for Doing Business in Dubai
UAE is not charging any corporate taxes on most industries, except for foreign banks, and oil companies. If the business is registered in the free zone category, then they do not have to pay taxes for some period.
7- Economic Stability
The economic condition of UAE is stable; and the main reason behind this stabilization is more substantial sovereign wealth funding, firm financial reserves, consistent spending actions of the government, promising investment in the home economies, progressive policies for economic diversification, and increased rate of foreign direct investment for business startup and business in Dubai.
Financial reserves of UAE are firm and are equipped with a robust banking sector that ensures a safe investment. The international monetary fund forecasts that growth of gross official reserves of UAE will be improved from $ 76.8 billion in 2015 to $ 118.4 billion in 2020. Various other reports have shown that the financial commitment of the UAE is fundamentally strong; it’ll be continued on a long-term basis.
Prefer stable trade
UAE is supporting stable trade and open trade with many countries throughout the globe. The country is giving significant importance for the growth and development of the private sector along with the maintenance of liberal policies, concerning import regulations, visa policies, and foreign exchange controls for business in Dubai.
Creation and maintenance of diversified and sustainable economy is a pillar of UAE vision; this vision will be achieved by capitalization on global economic partnerships. Flexibility in the adoption of new economic models, and diversification of the economy to guarantee, prosperity, for current and future generations on a sustainable basis for business startup, and business in Dubai.
For the achievement of this milestone, the Government has built 12 leading key performance indicators. They include research and development at the expenditure of percentage of GDP, sharing on knowledge workers in the labour force, global innovation indexing, global entrepreneurship, and development indexing, the contribution of SME’s to the non-oil sector of GDP, Emiratization rates for the development of private sectors, ease of doing business indexing, sharing of UAE individuals in the workforce, global competitive indexing, the net inflow of foreign direct investment, gross national income per capita, and growth in the non-oil sectors in terms of real GDP.
8- Favorable Business Regulations
UAE has signed a significant number of international business treaties and has implemented and maintained strict exporting rules; and laws for the prevention of illicit movement of goods. Along with the stellar growth, UAE is famous for alluring business opportunities in every sector due to ease of work, excellent infrastructure, and best licensing rules for business startup, and it is a unique part of Dubai business environment.
Foreign companies do not have to undergo any kind of financial obligations; this rule implements under the UAE commercial company law (13) 1998. However, the registration of a representative office is a must with the ministry of economy of the UAE and with the department of economic development. It is also mandatory that the office of the company should engage with a national, local agent of UAE, either as UAE domestic owned company or as an individual.
Rules for branch offices
The branches of the company can be utterly own by any foreign company; however, the appointment of a local service agent is a must. However, the engagement of representative offices with any kind of export activity or profit generation is prohibited.
Before opening any branch office in the free zone, getting license and approval from the ministry of commerce and economy is essential. Here all kinds of activities are only practised by the authorized offices and individuals. Foreign firms can establish a permanent business in Dubai, and they can launch limitation liability companies, branch offices, or sole proprietorship, for business startup and business setup.
Setting up a company in the UAE has various benefits; such as support for the appointment of employees, support for sponsorship, and housing, complete repatriation of profits and capital, full tax exemption for export, and import, exemption of corporate tax for 15 years, that can renew after a specific time, and no personal income taxes. It is a fact that UAE is a reputable and trustworthy place to open various business companies with great ease of doing business in Dubai. However, a good understanding of business laws is essential to achieve success for a business startup as it is offering wonders for Dubai business environment. So, Dubai is categorized as a business place.
9- Number of Visitors
UAE is an attractive place in terms of business, tourism, and for various other reasons. As many people are visiting the country for conferences, workshops, exhibitions, and tourism, so, these significant events are creating excellent opportunities for promoting business in Dubai and helps in the substantial increase in the outreach of brand from even a single location only.
UAE is a dynamic and modern country and is immersed in history and culture. It is a fascinating place where modernism meets with traditionalism, and traditional values are being integrated with the latest technology. Many people are visiting this place to have a luxurious experience, so Dubai is a business place.
Nightlife in UAE is incredible, and tourists can enjoy much sightseeing. Moreover, this is famous for golden dunes, relentless sunshine, modern projects, and opulent buildings that are acting as wonders for the promotion of business-related activities. The quality of life is excellent, so it is an excellent option to promote the business, as many people are visiting the UAE regularly.
10- Excellent Lifestyle
Lifestyle in UAE is excellently consumer-based due to the presence of various cultures. Other than this, purchasing power is also high, which is promoting excellent opportunities for business startup growth and development.
There has been a significant influence of international communities on UAE, and a right combination and mix of new and old heritage have been created. Although the country is rooted in the Islamic traditions; foreigners can practise their religion, and there is no restriction on being liberal, and dress coding that is the best part of Dubai business environment. Women can walk and drive unescorted, and hospitality, and courtesy is among the highly prized virtues; and due to this reason, Dubai is the best place to start a business also Dubai is a thriving business hub.
It is an attractive place for visitors from all over the globe; they are charmed by the genuine friendship of local people. Due to these reasons, an improved rate in international business activities has been observed in the UAE that is hugely helpful for Dubai business environment.
11- Modern Infrastructure
The government of the UAE has tried its utmost to remove all stones that may cause any kind of hindrance or disturbance in the foreign investment and business startup. Due to this reason, they are exceedingly fruitful in building world-class amenities, and infrastructure, in terms of office spaces, business parks, warehousing, utilities, connectivity, and transportation.
The infrastructure of the UAE is also intended to ensure exceptional educational activities and the most robust health care system to improve the business in Dubai. Additionally, health insurance is mandatory for all UAE nationals. UAE is having multi-speciality and famous tertiary hospitals and health care institutions. Furthermore, the literacy rate in the United Arab Emirates is 92.5%, and there are many well-known international universities. These educational and health care facilities are providing the best conditions for business growth, and development in UAE.