Yes, now is the prime time for a foreigner to start a business in the UAE. Business setup anywhere in the UAE is beneficial for both foreigners and locals right now. This is because foreigners were not allowed to own 100% of a business in the mainland before. If foreign entrepreneurs, investors, and businessmen wanted to start or invest in a business in the mainland, they could only own 49% of the specific business. Even if they are the founder of the business, they needed a local sponsor to own the rest of the 51% of their business.
After some amendments and additions to the commercial laws here in the UAE, now foreigners can own 100% of a business even on the mainland. This applies to businesses in almost all the sectors in the UAE. The few sectors where a foreigner cannot own 100% of a business are the industries that are strategically important to the UAE. For example, a foreigner cannot own 100% of a business in the Transportation, Oil, and Gas industries. These businesses are strategically important to the government of the UAE and so the majority of these businesses need to be owned by an Emirati.
Do not worry, countless other sectors are booming right now. A business setup in Dubai is very easy and attractive right now. There are equal opportunities for big corporations and conglomerates as well as small and medium enterprises. Even startups and entrepreneurs can get a piece of the action here in Dubai.
Now that we have settled that you as a foreigner can start a business here in the UAE, why choose the UAE for your startup or investment at all?
Benefits of Business Setup in the UAE
Here are the reasons why you should choose the UAE as your destination for your startup:
- Growing Economy
The authorities in the UAE are trying to change the economic focus of the country away from the oil and gas sector for some time now. This is the main reason why Dubai and the rest of the Emirates are so attractive for new and existing businesses from around the world. By easing the company setup process and offering attractive tax exemptions, the government is trying to establish the non-oil economy of the country.
For this specific reason, all the benefits you will find in the UAE are provided in the first place. With that logic, as long as the economy is growing, you will continue to receive these wonderful benefits. Remember, you deciding to start your new business in the UAE is growth to its economy.
- Tax Exemptions
The tax regime of the UAE is one of the biggest attractions for businessmen from all around the world. All businesses in Dubai get 100% exemption from both personal and corporate incomes. Business owners from all around the world agree that they detest paying such a big chunk of their hard-earned money to the government through taxes. However, if you choose to start your business in the UAE, then you do not need to worry about taxes.
When we say that you get 100% exemption from corporate and personal taxes, it means that both your income and your business’s income will be free from tax. As we know, a business is a separate entity that is subjected to its laws and regulations. So, if you work somewhere in the UAE, your income will be free from tax as well.
- Economic Zones
There are three jurisdictions in the UAE. These are the mainland, the free zones, and offshore. Let us look at what these economic zones have to offer and how you can benefit from them.
The Mainland has fewer restrictions and supports a wider range of business activities. When you start your business in the mainland, you can conduct your business activities anywhere in the UAE. However, the mainland does not cater to any specific types of businesses so you might miss out on some of the benefits provided to specific businesses in the free zones.
The Free Zones cater to specific types of businesses and provides specialized benefits for them. There are over 40 Free Zones in the UAE right now and they are expanding faster than ever. Even though the free zones offer more, your business can only operate inside the free zone it is located in. That means you miss out on clients and contacts outside the free zone.
An Offshore Company means that you can form a branch of your existing business in the UAE very easily. For example, if you already have a full-fledged profitable in the USA, you can increase your scope by opening an offshore company in the UAE.
- Excellent Infrastructure
Countries that offer growth opportunities usually do not have good existing infrastructure. They offer attractive terms to slowly improve the landscape of their country. However, since the UAE already has an excellent economy thanks to its oil and gas industry, it can offer excellent infrastructure from the get-go.
Dubai is among the top cities in the world in terms of infrastructure. Dubai and the rest of the emirates have the best airports, seaports, and road networks in the middle east. If your business depends on an efficient logistics system, then you have nothing to worry about.
- Easy Company Formation
We understand that starting a new business anywhere in the world can be a daunting task. Starting one in your home country can be hard let alone starting one in a foreign country. However, Dubai has some of the most experienced business consultants who are ready to help you get started easily. You do not even need to be present in the UAE to get your business started through Spider BC. All you need to do is provide the required documents and fees and you are good to go.
If you are looking to get started in the UAE, the consultants in Spider Business Center are always ready to help you out. Contact us today and hit the ground running.