Myths and facts about business setup in Dubai

Myths vs Facts about Business Setup in Dubai

by Zaara 10, Nov 2021

Dubai is an inviting and unrivaled city where businesses are always booming. The city is home to some of the largest business houses in the world, with their investment crossing billions of dollars.

Unfortunately, there are many misconceptions about the procedures and opportunities involved in opening a company in Dubai. This creates confusion among the business investors and business owners to make the perfect call for their business.

It is crucial to believe what you hear and read, but it is even more important to confirm the facts before you leap, especially if you are a first-time entrepreneur.

If you have been toiling with the same question, this guide is for you!

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Myth 1: Business Incorporation is Costly:


Reality 1: Dubai Corporation is Easy on Pockets

Business incorporation in any corner of the world involves a high investment of capital backed by multiple parameters.

The most populous destination in the United Arab Emirates, Dubai is considered an investment hub as the company incorporation cost is comparatively lower compared to other European locations.

The Emirati government has built different zones, categorized as Dubai Mainland, Freezones, and Offshore destinations that turn out to be feasible depending on the business activity.

Most new business enterprises prefer opening a company in Dubai Freezone as it gives the leverage to enjoy tax benefits. On the other hand, established companies focus on Mainland incorporation as the business activities can be carried out in different parts and outside the nation.

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Myth 2: Dealing with the Legalities is Time Consuming


Any foreign investor would be an alien to the legal proceedings that the UAE holds for business incorporation. However, this can't be a hurdle stopping investors from incorporating their dream business today.

Most business investors or owners value time. Thus, they prefer proceeding ahead with professional experts who can assist them in the best possible and feasible way to kick-start their business by clearing the legal proceedings.

Read about the requirements and steps for your business setup in Dubai. Everything is covered in easy-to-understand language for you.

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Myth 3: Offshore Businesses are Illegal


Reality 3: Offshore Business Establishment is Growing

Gone are the days when the concept of offshore was looked at as an illegal activity, getting involved in activities like money laundering and tax evasion.

Today, offshoring business activities are looked upon as a smart option as the business investors can get ample tax benefits, and the business operations can be carried out remotely.

JAFZA is the offshore destination in Dubai preferred by most business investors. To know more, here's a guide on offshore company formation in UAE.

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Myth 4: Holding a Local Sponsor is Necessary


Reality 4: Availing Local Sponsor Depends on the Business Activities

Local sponsorship is a concept that mandates local personnel (individual or corporate) to hold 51% of the company shares, whereas the owner has only 49%.

As per the recent initiatives taken by the UAE Government, the law gets applied to only 122 permitted business activities.

This means that non-GCC entrepreneurs can easily set up their business without joining hands with a local Emirati. Have a look at our latest guide on finding the right local sponsor in Dubai, it will give you a gist on the same.

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Myth 5: Dubai is not Favourable for Female Entrepreneurs


Reality 5: Dubai Holds a Strong Ground for Female Entrepreneurs

Dubai is emerging as the Middle East's most prolific hub for women to get their businesses off the ground and attract funding.

The number of women-owned businesses in Dubai increases year over year, making it a perfect destination to encourage a healthy work-life balance. These support systems allow women to succeed in their businesses and thrive in leadership positions.

Dubai is at the forefront of progressive development and is one of the most liberal cities in the Middle East region. The United Arab Emirates strives to utilize its resources to achieve sustainable growth and prepare its future generation to cope with future challenges.

The UAE's achievements are a testament to its commitment to gender equality and inclusion, which is why it is considered one of the best countries to do business with right now!

So, if you are planning to take a step ahead and proceed, Commibiz can be your partner that guides you towards success by clearing all legal proceedings at ease.

We offer a complete business setup package by taking care of legal compliances, tax registration, and all the paperwork required for starting your business. If you want to know more, feel free to speak with our experts. Contact us today-we'd be glad to assist!


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Is the Dubai government supportive of businesses?

Yes, the government encourages entrepreneurs with friendly laws and supportive policies

Which business structure is very common in Dubai?

Limited Liability Company (LLC) is very common.

Can mainland companies trade outside UAE?

Yes, mainland companies can trade to the international market.

What are the types of licenses in Dubai mainland?

The major types of licenses are Professional, Commercial, and Industrial.

Does Dubai have an offshore location?

Yes. Eg, JAFZA