Dubai has established itself as a strong contender among the global investment destinations after the diversification from an oil-based economy to a knowledge-based economy. By designing strong regulations and a business-friendly atmosphere, Dubai has succeeded in attracting investors from across the world. The implementation of the best policies and regulations has made the process of business setup in Dubai attractive to foreign investors. Dubai has always been committed to build a strong infrastructure and maintain a stable political and social environment for businesses to thrive.
Businessmen from across the world prefer the process of business setup in Dubai over other jurisdictions due to the following reasons:
1. Strategic Location
By setting up a business in Dubai, the investors get the benefit of access to global markets courtesy of the strategic location of the emirate. Dubai is strategically located between the East and the West thereby acting as a gateway to international markets. The process of company formation in Dubai gives foreign investors easy access to Africa and other Middle East countries.
2. Stable Political Environment
Political stability is one of the top reasons that an investor considers while deciding to set up a business in a foreign country. Constant changes in rules and laws would affect the prospects of business in any country. The UAE’s system of governance is founded upon a strong vision and the country is not subject to any political upheavals. The process of business setup in Dubai is therefore smooth thanks to the stable political system.
3. Business Friendly Policies & Ease of Doing Business
The UAE is ranked 16 in the World Bank’s 2019 Ease of Doing Business rankings, which means the country has a highly favourable atmosphere for setting up businesses. The environment of business setup in Dubai is founded upon the robust policies designed by the government. The government has a strong and business-friendly vision for the emirate’s economic prosperity. The Dubai government has always been determined to adopt innovations and future technologies. When a global pandemic like COVID-19 hits the world, Dubai has been able to flatten the curve and ensure business continuity due to the early adoption of digital transformation. This proves that Dubai has future-proofed its landscape and investing in a future-ready city is the best way to ensure growth.
4. Strong Workforce
The easy availability of the labour force is a major factor that enhances the business prospects of foreign investors in Dubai. Expats belonging to over 200 nationalities are living and working in Dubai and finding the right employees for the business is not a herculean task for the entrepreneurs. In Dubai, employers have easy access to a workforce possessing qualities like communication, creative thinking, managerial skills, etc.
5. New FDI Law on 100% Ownership
The UAE has brought in a major change to the ownership structure of mainland companies by introducing 100% ownership as per the new FDI law. The new law is applicable to certain key sectors that cover 122 activities. The key sectors are
- Transport and storage
- Hospitality and food services
- Information and communications
- Science and technology
- Art and entertainment
However, certain conditions are to be fulfilled to avail the benefit of 100% ownership in the mainland. Companies need to invest in innovative technologies and contribute to research and development.
6. Exemplary Visa Benefits
The company formation in Dubai is favoured by foreign investors due to an expat-friendly visa system. Obtaining a residency visa is a hassle-free process for foreign investors after initiating the process of business setup in Dubai. The residency visa processing and the sponsoring of dependents become much easier by hiring the PRO services provided by reputed business setup consultants in Dubai. The UAE has also passed a new law recently that allows expats to extend their residency visas when they retire subject to certain conditions.
7. Dubai Expo 2020
Dubai’s position in the global business map is expected to get a boost after the much-awaited Expo 2020. Though the event has been postponed to 2021 due to the COVID-19 pandemic, Expo 2020 is still expected to bring more investments to Dubai as the UAE has taken successful measures in containing the spread of the virus. The Expo 2020 is likely to add more investments to sectors such as
- F & B Sector
- Real Estate
- Logistics & Transport
- Retail Outlets
The success of Expo 2020 will transform the business environment in Dubai in favour of the investors. The event is expected to make the company formation in Dubai more attractive to foreign investors.
8. International Trade Opportunities
Company formation in Dubai is a great opportunity for investors to establish trade connections with global players. Dubai constantly hosts international exhibitions and trade shows every year that brings big business people from across the world. Gulfood, Arab Fashion Week, Automechanika are some of the best-known business events regularly hosted by Dubai. Such events give investors to establish a strong link with global businesses.
9. Attractive Tax Benefits
The process of company formation in Dubai has become extremely popular due to the nominal tax regime. There is no income tax and corporate tax in Dubai, which is a major cause for foreign investors preferring to set up their businesses in the emirate. The free zone and offshore company formation in Dubai provide the best opportunity to avail of great tax benefits. However, the UAE introduced the Value Added Tax in 2018, and the businesses are required to ensure VAT compliance as per the law.
Why Choose Jitendra Business Consultants for Company Formation in Dubai?
Foreign investors find the process of company formation in Dubai as a lucrative opportunity due to a slew of factors including tax benefits, government support, stable political environment, etc. However, the success of a business is determined by how the investors are complying with the laws and regulations governing the process of company formation in Dubai. The regulations of free zones and the mainland are entirely different and the investors need to exercise caution while selecting the right jurisdiction. While the mainland provides the opportunity to trade in the wider UAE market, the free zones have many restrictions on the activities. The process of choosing the right business jurisdiction is a strategic decision that needs the expert assistance of a reputed business setup service firm like Jitendra Business Consultants (JBC).
JBC has years of experience in assisting businesses from a variety of industries in successfully executing the process of business setup in Dubai. JBC has a strong team of highly qualified business setup consultants who are well-versed in all the local laws and regulations. The sound knowledge of UAE regulations enables JBC to prepare every document properly and obtain approvals from the concerned licensing authorities. JBC stands with the investors in every step of company formation in Dubai right from the company registration to incorporation. The JBC provides other services including visa processing, business centre services, and Economic Substance Regulations compliance to ensure the success of the clients.