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How to Establish or Start a Business in Dubai as a Foreigner?

Are you a foreigner looking to establish a business in Dubai? know more about the steps and procedure to start a business in Dubai as a foreigner.
Business Jithin 1 August 2021
How to Establish or Start a Business in Dubai as a Foreigner?

As a foreigner, investing in Dubai is quite challenging. Because foreign investment is still subject to several restrictions. However, establishing and running a business in Dubai can be rewarding.
The growing economy of Dubai provides numerous chances. Profits can be made through services, finance, trade, real estate, and property. Moreover, Dubai is considered as the business hub of Middle East.
Dubai is also an excellent place to establish a business and develop across the Middle East and North Africa .

The following section will give you a better sense of what to expect if you are a foreigner interested in investing and starting a business in Dubai.

Why should you invest in Dubai?

Foreigners who seek to start and run a business in Dubai face many obstacles. However, it has several advantages, including:

  1. Companies incorporated in Dubai are exempt from corporate tax, withholding tax, VAT, import/export tax, and capital gains tax;
  2. The UAE has signed more than 66 international double taxation treaties with key countries like China, the United States, and most members of the European Union;
  3. Foreign currency can be easily accessed by foreigners as there are no exchange restrictions in place.

Foreigners wishing to relocate to Dubai can also benefit from the city’s multicultural ambiance. The population of Dubai is made up of people from all over the world. As a result, the city is always up to date on current events and trends. It’s also a dream come true for any restaurant that wants to experiment with diverse cuisines.

Dubai is also a great place to shop because it is VAT-free. Residents are not required to pay personal income tax.

Creating a Dubai corporation

The primary step towards business setup in Sharjah or Dubai or anywhere in UAE is determining the suitable sort of corporation for your business.

It is preferable to establish a business in one of Dubai’s free zones. A Dubai Free Zone Company permits foreign investors to own the entire business.

Foreigners can only possess up to 49 percent of a Dubai Limited Liability Company. A UAE citizen will control the remaining 51 percent of the shares. Government officials will only allow a 100 percent foreign-owned LLC in extraordinary circumstances. If you register your LLC in a free zone, you’ll have a better chance of getting it approved.

Dubai Free Zones

In Dubai, there are more than 30 free trade zones for each industry.

When you start a business in a free zone, you have complete control. The Dubai Free Zone Company enables you to return your earnings and profits to your home country.
In addition, Free zones in Dubai provide the following benefits:

  1. A simple incorporation process;
  2. Less restrictions on staff recruitment;
  3. Zero Import or export taxes
  4. High-quality infrastructure
  5. Low-cost utilities

In free zone, foreign investors can form an LLC or a branch business.
A free zone establishment can be formed by a company with only one shareholder. A Free Zone Company can be formed by a company with two to five shareholders (FZC).

All free zones are not permitted in FZEs. In Dubai, most free zones require at least two shareholders. Before integrating, please take note of the specific needs of each free zone.A minimum down payment capital is required in all Dubai Free Zones. The quantity of capital paid is determined by the free zone and the form of the organisation.

Customers are another crucial factor to consider when beginning a free zone business. A free zone business should not to carry business ventures with UAE residents.You’ll need to engage a service agent if you want to do business in the UAE.You’ll need to engage a service agent if you want to do business in the UAE. In his name, the agent sells and distributes goods and services.

Registering your business in Dubai

To register a business in a Dubai free zone, you must submit the following documents to the Dubai government authorities:

  • A thorough business plan.
    The following items should be included in your business plan:

    • The specific business activity’s business description;
    • Employees’ size and organisational structure;
    • The amount of money invested;
    • Contact information for suppliers
  • A lease contract
  • Receipt of equity capital investment.

Also Read: Low investment business ideas

A Dubai firm must open a corporate bank account to deposit the required paid up capital before consolidation. Government officials will examine your firm registration application. After you’ve received official approval, you’ll need to apply for the necessary licences and permits.

The licences you’ll need may differ based on the type of business you run. The company registration is complete once you have acquired the licences.
It is the best time to start a business in UAE. Establish your dream company in Dubai with ease.