Myths vs Facts About Business Setup in Dubai
Dubai continues to provide a profitable and productive environment for business people and entrepreneurs from all over the world. The city provides limitless company setup in Dubai prospects, making it the UAE‘s commercial hub. Businesses profit from Dubai’s strategic geo-location since it is well-connected to the rest of the world.
However, for many people, to start a business setup in Dubai might be difficult. Even though the procedures are not overly complicated, an ex-pat may find them confusing. People naturally seek out the opinions and experiences of others, which leads to misunderstandings and myths. We’ve decided to dispel the most frequent fallacies about starting a business in Dubai, based on our 14+ years of expertise in the UAE.
Myth 1 : It’s Expensive to Start a Business Setup in Dubai.
Capital investment is required to start a business setup in Dubai. Because of its hassle-free business incorporation, the UAE is recognized as a business paradise. Launching a business in Dubai is significantly more pleasant and cost-effective than starting one in Europe, for example, due to the economy’s diversification.
Here are some figures for three well-known niches:
- IT is a booming industry. In order to start an IT company in UAE in one of the UAE Free Zones, you’ll require between USD 7,700 and USD 14,000 on average.
- Beauty salon. Licensing fees are expected to be around USD 8,700, with annual rent in Dubai’s best district starting at USD 17,700.
- A trading firm. The cost of starting a trading corporation ranges from USD 7,700 to USD 14,200.
Aside from that, there are other benefits to starting a business in Dubai, such as no income tax, a low VAT rate of 5%, and a lack of corruption and bureaucracy.
Myth 2 : Establishing a business takes too long and is time-consuming.
It might be difficult and time-consuming if you are unfamiliar with business regulations. However, with the support of advisors like RadiantBiz, one of the best business Setup Consultant in Dubai who know everything there is to know about forming a business in Dubai. There are only three stages to forming a business setup in Dubai.
- Get your Dubai Business license
- Obtain your UAE Residence license
- Setup your corporate bank account
You may legally conduct your business in Dubai in 1-4 weeks if you have the necessary documentation in place.
Myth #3: Doing Business Offshore Is Illegal
Offshore Company Formation in UAE is completely legal, and it is one of the quickest and safest ways to own a company in Dubai. Many offshore enterprises already exist in Dubai’s central municipalities, including those in a business center in Business Bay, JLT, and Media City. With the predicted rise of businesses in the UAE in the next years, you’ll need to know what information to believe and what not to believe.
Myth #4: A local sponsor is required for Company Setup.
Many foreigners and businesspeople believe that starting a company setup in Dubai necessitates the hiring of a local sponsor (a UAE native). Unfortunately, this is not entirely accurate.
UAE now allows ex-pats to set up businesses without any sponsor. You can have 100% Ownership in Dubai Mainland of your company as an expat. Furthermore, you benefit from 100 percent capital and profit repatriation, no income or personal tax, and much more.
Myth #5: The city is unwelcoming to female entrepreneurs.
The United Arab Emirates is one of the most gender-equal countries in the Middle East. Dubai is a popular destination for female entrepreneurs because it is one of the most open cities in the Middle East. Emirati women led the list of the Middle East’s top 100 businesswomen. The city is also actively working to establish a business-friendly climate for all genders.
The majority of the myths about Dubai are developed and believed by people who have never visited the city or are unaware of the reality. However, the truth is that starting a business in Dubai is rather simple.
We at RadiantBiz can assist you in starting a business in Dubai. We handle everything from business formation to office space. For additional information, please contact us immediately.