Dubai is unremittingly offering a profitable and productive atmosphere for business persons and entrepreneurs from around the world. The city offers unlimited business opportunities, bring the commercial capital of the Emirates. Since Dubai is well-connected to the rest of the world, businesses are benefitted from its strategic geo-location.
But, for many, it can be quite challenging to set up a business in Dubai. Even though the procedures are not that complex, it can be not very clear for an ex-pat. Naturally, people ask others for their opinions and experiences, creating confusions and myths. With 14+ years of experience in establishing a business in the UAE, we have decided to dispel the most common myths about opening a business in Dubai.
Myth 1 - Starting a Business in Dubai is Very Expensive
To establish a business in any country, investment of capital is much-needed. The UAE is known as the business haven, and rightly so because of its hassle-free business incorporation. Thanks to the economy's diversification, starting a Dubai business is much more comfortable and economical than, for example, in Europe.
Here are some numbers for three popular niches:
- IT business. To open an IT company in one of the UAE Free Zones, you will need, on average, USD 7,700 to USD 14,000.
- Beauty salon. Licensing fees will be around USD 8,700, and the rent of premises in the best district of Dubai starts at USD 17,700 per year.
- Trading company. Starting a trading company will cost you from USD 7,700 to USD 14,200.
Apart from this, there are other advantages of forming a business in Dubai like no income tax, VAT as low as 5%, and no corruption and bureaucracy.
Myth 2 - Business Setup is Lengthy and Time-Consuming
If you are not aware of the business regulations, then it can be complicated and time-consuming. But with the help of consultants like Commitbiz who knows everything about setting up a company in Dubai. Incorporating a Dubai business involves just three steps -
With proper documents in place, you need 1-4 weeks to operate your business in Dubai legally.
Myth 3 - Offshore Business are Illegal
Starting an offshore business in the UAE is entirely legal, and one of the fastest and safest way to own a business in Dubai. There are already numerous offshore businesses in Dubai's central municipalities, including those businesses in a business centre in business bay, JLT and Media City. With the expected growth of companies in the UAE in the comings years, you must know what information to believe or not.
Myth 4 - Having a Local Sponsor for Business Setup is Mandatory
Many foreigners and entrepreneurs think that starting a business in Dubai requires appointing a local sponsor (UAE national) as a part of the company. Unfortunately, this is not a complete truth.
More than 20 free zones in Dubai can start your business with appointing a local sponsor. What's more, you enjoy benefits like 100% repatriation of capital and profits, full foreign ownership, no income or personal tax and much more. Apart from this, if you are a professional, you can obtain a professional license and own 100% of your company.
Myth 5 - The City is not Business-Friendly for Female Entrepreneurs
UAE is amongst the top countries in gender equality in the Middle East region. Dubai is one of the most liberal cities in the Middle East region and, therefore, a popular destination for female entrepreneurs. Emirati women dominated the list of 100 most powerful businesswomen in the Middle East. The city also works hands-on the create a business-friendly environment to be it any gender.
With the expected growth of businesses in the UAE in the comings years, you must know what information to believe or not. The myths about Dubai are mostly created and held by people who have never visited the place or do not know the facts. But the truth is that one can set up business in Dubai without much complication.
If you plan to set up a business in Dubai, we at Commitbiz can help you. Right from business incorporation to office space, we cover it all. Contact us today for more information.