Due to its fast development and economic growth, the UAE is a very popular country among business people. Although the entire country is popular, the most popular city is Dubai. Its world-class lifestyle for investors and entrepreneurs makes Dubai a successful business hub. You’ll discover the reasons why this city has an outstanding reputation.
In this article, you’ll learn everything you need to know about Dubai as a business location. Here you’ll find the reasons why Dubai is an ideal location to do business. Besides, you can also find important information regarding the business setup process in this emirate, including benefits, requirements, etc. Let’s observe:
- Why Dubai has become a successful business hub in the UAE?
- Which are the most profitable business ideas in Dubai currently?
- What advantages can you obtain in Dubai free zones?
- The steps you must follow to set up a successful Dubai company.
- Tips you should consider before forming a company in Dubai.
- What types of business licenses can you find available in Dubai?
- The required paperwork to complete the company registration process.
- How can Connectfz help you establish your business in Dubai?
1. Why Dubai has become a successful business hub in the UAE?
If you analyze each detail, you’ll realize that some key factors make Dubai a successful business hub. However, here we’ll focus on five main elements. These elements are location, business policies, tax rules, governance policies, and economic growth. Keep reading this article to discover more information about them.
Here you can learn about the benefits and other reasons why you should establish your company in Dubai.
1.1. Dubai’s efficient business policies.
Dubai and the UAE are applying multilateral trade policies or export diversification policies. With these policies, the entire country will be able to encourage foreign trade even more.
1.2. Dubai’s strategic location.
It’s probably the main factor that made Dubai a successful business hub in the UAE. This emirate has a favorable connection with local and international markets. Besides, efficient and trouble-free transportation makes it the ideal place to do business.
1.3. Liberating tax rules.
Besides Dubai, this element is valid in all UAE emirates. They all are known for not making taxes, including personal, professional, or corporate. This makes it easier to form a company as a foreign investor.
1.4. Its economic growth.
Its sustainable development is possible because of the supply of oil and gas reserves. Therefore, oil production is the main income source that facilitates the country’s economic growth.
1.5. Dubai’s effective governance policies.
Business-friendly laws and administration allow all business activities to thrive in Dubai. These policies provide incentives to encourage investors to establish their businesses. All these elements make Dubai a successful business hub.
2. Which are the most profitable business ideas in Dubai currently?
Since the city provides the necessary resources and environment, investors can easily set up any kind of business. Nonetheless, there are some business ideas more profitable than others. In Dubai, you are free to choose among a wide range of options. Therefore, let’s take a look at some small business ideas you can use to establish a company:
Dubai is constantly growing in every sense; even new buildings are being constructed every day. Dubai’s growing population is the main reason why these new buildings need to be built. In other words, the construction sector increases its numbers every day. As a result, investors and professionals who are related to this field can find endless opportunities in Dubai.
2.2. Restaurant or coffee shop.
Another good option you can choose is building a restaurant or a coffee shop in Dubai. Due to their excellent purchasing power, Dubai residents usually go out for lunch, dinner, or snacks. This is already a daily routine for 17 percent of the population. In other words, these food businesses are very profitable in Dubai.
2.3. Tourism and travel.
Dubai is one of the world’s most popular destinations for tourists. It means that a massive number of travelers visit this city every year. Therefore, it makes Dubai a successful business hub for the tourism industry. However, it is important to remember that some specific licenses are necessary. The main license that you will need to operate a tourism agency is the tourism license.
2.4. Real estate agency.
Another booming sector in Dubai is the real estate industry. Due to the flexible policies and regulations, overseas direct investments are easy to carry out. Besides, there are more ex-pats in the city every year, which increases the demand for property management. As a result, the real estate industry becomes a lucrative business for investors.
2.5. Digital marketing / IT consultancy.
If you want to start a small business with a limited budget, this is the best choice. Besides, investors obtain two main benefits at the very beginning. Firstly, they do not need to have a physical office space to start running this business. And secondly, it is not necessary to hire employees during the first phase of development.
Here you can learn some other business ideas to establish a profitable company in Dubai.
3. What advantages can you obtain in Dubai free zones?
If you establish your business in a free zone, you’ll receive the following benefits:
- 100% ownership and full repatriation of capital and profits.
- Full exemption from corporate taxation and import/export duties.
- Access to world-class infrastructure and facilities (including warehousing services and office space).
- Access to a large pool of high-qualified workers to hire.
- Business-friendly regulations make easier the process to form and develop your company.
Here you can learn about the true cost of setting up a company in some Dubai free zones.
4. The steps you must follow to set up a successful Dubai company.
Learning how to register a small business in Dubai will be essential to form your company correctly. Therefore, let’s take a look at the steps you must follow:
- Firstly, you’ll need to choose the business activities you want to carry out. It’s essential to select them in order to apply for your license.
- Secondly, your company will require a proper name. Some rules must be followed when choosing your company’s name.
- Thirdly, you’ll have to gather all the necessary documents to register your firm. There are two main processes to complete. These processes are applying for the license and opening a corporate bank account. You can find more information about it below.
- And finally, you must apply for the visas you need. After the entire process is done, you can start operating your company.
Here you can learn more about the business setup process in Dubai free zones and its requirements.
5. Tips you should consider before forming a company in Dubai.
Before you set up your business in Dubai, you must take into consideration some elements. For instance, you must carefully choose a location that boosts your company. In case you choose a free zone, select the most suitable one for your business.
Similarly, you must consider every little detail, including costs, terms, and conditions, among other elements. Also, you should confirm your visa eligibility, which will depend on several facts. Some of them could be the nature of your business, office size, different categories, etc.
And lastly, you should also consider working with a business setup partner. It could help you agile the setup and registration process of your company. Besides, you’d be able to save time by making the process more efficient.
6. What types of business licenses can you find available in Dubai?
Another element that makes Dubai a successful business hub is the variety of available licenses. Any investor can operate any kind of business and apply for different licenses. However, it is essential to know basic information before applying for any of them. If you’re interested in knowing about each license, keep reading this article to find the information you need.
6.1. Trading or commercial license.
Obtaining this license means that you’ll be able to trade all kinds of goods across the country. Before applying for it, you must specify your commercial activities. Remember that some activities may require additional permits or licenses. You can obtain this license by submitting the required documents to the DED (Department of Economic Development).
Here you can learn more about the commercial license in Dubai and the process to obtain it.
6.2. General trading license.
Once you receive your commercial or trading license, you can apply for other licenses. For instance, the general trading license can be obtained under the commercial license. With this license, investors can trade a larger number of products. Besides, it provides the advantage of trading different kinds of goods at the same time.
6.3. Service license.
Certain kinds of businesses need different licenses to operate in Dubai. For instance, some companies will need a service license, which allows them to provide their services legally. However, it is important to remember that the license will specify the allowed activities. Some of the activities you can carry out with this license are business consultancy, shipping, freight forwarding, and more.
6.4. Industrial license.
As for the industrial activities, it is necessary an industrial license to perform them. Companies that carry out these types of activities can obtain this license to operate legally and securely. This license covers many related activities, including importing raw material, manufacturing, processing, assembling, packaging, and exporting finished products.
6.5. Professional license.
On the other hand, individuals who want to provide their services can apply for this option. For example, if you want to provide consultancy services individually, you will need this license. Other professionals who should obtain this license are lawyers, artists, educators, etc. Other activities that you can perform with it could be medical services, digital marketing, and many more.
6.6. Other available licenses in Dubai.
As we mentioned before, some activities may require additional licenses. For example, if you want to establish a restaurant, you will need a restaurant license. In case you want to set up a software business, you will need then a software development business license. To summarize, you need to apply for the different licenses according to your business needs.
7. The required paperwork to complete the company registration process.
Since it’s now Dubai a successful business hub in the country, the investors must learn about its requirements. Different documents will be necessary depending on the option you choose. You can choose between three main options; free zone, mainland, and offshore company. Let’s see what you need to set up a free zone company in a Dubai free zone:
- Your application license form (duly filled).
- A copy of your business plan.
- Some passport copies of the partners and business managers.
- The Memorandum and Articles of Association (notarized and attested).
However, remember that some other documents could be necessary. It will mostly depend on the type of license you apply for. You can obtain more information about it with your business setup partner.
Here you can learn about the correct procedures to carry out import and export activities in Dubai.
8. How can Connectfz help you establish your business in Dubai?
Now that you’ve seen what makes Dubai a successful business hub, you’ll want to build your business. And once you have decided on it, you can have a fresh start if you request our help. With our different services and affordable packages, you’ll be able to establish your business immediately.
Besides, we can still help your company grow after setting it up. If you are interested in receiving our services, you can check on them on our website. We have available our UAE market entry services, banking services, tax advisory, and many others.
Would you like to contact Connectfz to know more about Dubai city and the process to set up a company in this location? If you have any questions, call us on +97143316688. You can email us at firstname.lastname@example.org, and you will talk to one of our representatives who will answer your questions.