Top Myths About the Business Setup Process in Dubai-explained

Top Myths About the Business Setup Process in Dubai

Is starting a business in Dubai expensive?

Any entrepreneur may establish a firm anywhere on the planet with a certain level of financial investment. The price of forming a business varies from nation to nation. However, Dubai is significantly cheaper than other European nations when it comes to starting a business. You must pay a variety of taxes in other important jurisdictions, such as income taxes, corporate taxes, etc. When forming a corporation in Dubai, you are not mandated to pay these taxes. Value Added Tax (VAT), which is a meagre 5%, is the only tax in Dubai. In contrast, Dubai’s free zones offer inexpensive company setup plans.

Do expats need to collaborate with a UAE Citizen to conduct businesses in UAE?

One of the greatest fallacies surrounding the procedure of setting up a business in Dubai is this one. There is no requirement for a UAE national to act as a local sponsor in free zones in Dubai and Mainland Dubai, which allows 100 per cent foreign ownership. In the past, setting up a firm on Dubai’s mainland required investors to work with a UAE citizen. Foreign investors can now completely control a Dubai mainland firm under particular commercial licensing activities after the government abolished that restriction in 2021. In mainland Dubai, real estate brokerage firms can now be founded with 100 per cent foreign ownership (It used to be 100 per cent owned by UAE nationals earlier).

Top Myths About the Business Setup Process in Dubai

How long does it take to start a new business in Dubai?

If the paperwork is in order, you may well have your trade license in Dubai within one hour. The secret to quickly forming a corporation in Dubai is proper documentation. You may speed up the licensing procedure by correctly drafting all the necessary paperwork with the aid of Profound Business Services

How important it is to understand business and tax legislation in UAE?

Without familiarity with the immigration, labour, and tax rules of the UAE, you cannot launch a business in Dubai. The Economic Substance Regulations (ESR), Ultimate Beneficial Ownership (UBO), and the Anti-Money Laundering and Combating Financing of Terrorism Act are further new regulatory requirements (AML-CFT). Foreign investors, however, do not need to strain their brains to comprehend such complicated legal criteria.

This article is written by Aromal Nair, business setup advisor at Profound Business Services. We at Profound Business Services can assist overseas investors by providing information on licensing requirements in free zone mainland and offshore jurisdictions and UAE regulations. Our team of company setup experts in Dubai can assist you with procedures in a way that is both effective and competitive. If you are interested, reach out to us at +971 4 325 6111 or email us at [email protected].

*Please Note: This article was published on 17th August 2022. The information provided in the article is based on the policies and rules applicable at the time of writing it. Talk to one of our consultants for any recent update or change.

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