European entrepreneurs find Dubai a perfect place to start their businesses, and the choice is highly dependent on state of the art technology and the facilities available in Dubai for startups and established businesses. Most European entrepreneurs are not aware of the systems and processes that need to be followed in order to start a business in Dubai. The aid of good business setup consultants like Kiltons is the best way to learn, understand, and also ensure impressive growth in your business.
Here we are trying to educate ourselves on the different steps and aspects that European entrepreneurs need to follow in order to set up their businesses in the growing business hub in the world.
Let us first look into the different benefits that European companies or entrepreneurs can avail themselves of by setting up or launching their international business in Dubai.
- Economy is growing
The UAE as a whole has been striving to be a one stop business destination on the map of emerging global economies. And Dubai is one of the major cities that has gained visibility among the world's population. The conduct of Expo 2020 in itself showcases how the land is calling out to businesses far and wide around the globe to start their businesses in Dubai. As the Dubai market is growing exponentially, European entrepreneurs can find exclusive freezones that can help them network vividly and explore finding customers that can engage with their business.
- Strategic location
A business can be guided to success only if the relevant factors that support it are aligned for growth, and one such factor is the location of the business. Dubai is in itself in a position where it has a central location to three different continents. And hence it is ideal for businesses invested in international exports and imports, logistics, tourism, etc. Dubai has a 400-mile-long shoreline. Thus giving access to transit options by sea and additionally connecting with other Emirates and Middle Eastern countries as well.
- Business friendly tax structures
Dubai and the UAE as a whole are known for their tax policies and regulations. Many European entrepreneurs choose Dubai as their headquarters because of the flexibility of the rules and regulations and the feasible tax structure. Countries like the UK, the US, and other European countries have higher tax rates when compared to the UAE. The corporate tax in the UAE is coming up to 9%, which is a very low percentage when compared to other countries. Tax exemptions are much more effective in free zones, so if tax structures are your concern, the Dubai freezones are the best choice.
- High standard of living
Dubai is one of the most developed and safest countries on the globe in terms of crimes and such. For a business to thrive, it needs to be built in an environment that is legally supportive and secure. The average number of crimes that happen around the world is 6 to 8 per day. In Dubai, crimes are non-existent and average just 0.5 to 1 per 100,000 people. The political stability and standard of living that Dubai offers to its residents is commendable and stands out from the other parts of the world.
- Chance for a residency permit
Dubai is trying to embrace international diversity, making it the ideal place for European entrepreneurs who want to do business with different people. When you get the visa for starting the entrepreneurial journey for European entrepreneurs and their families, as well as the employees that come to work for them, the visa will also help the entrepreneurs get a place to stay. The long-term residency permit is offered by the UAE government and is popularly known as the "Golden Permit.”The golden visas allow long-term residence visas that give residents the opportunity to stay in the UAE without the need for sponsorship. The visa is provided for 5-10 years.
- World Class Healthcare
Dubai is known for the esteemed care that it gives to its inhabitants in terms of healthcare. There are 40 hospitals in Dubai that have world class technology. These hospitals are in both the public and private sectors. Employers also need to provide healthcare facilities for their employees, which is a mandatory rule. Expats and citizens alike can maintain a healthy lifestyle by visiting parks, beaches, gyms, and other fitness centers. The popular sports that are played in Dubai include polo, tennis, camel riding, tennis, and cricket.
- 100% repatriation profits
The business can take 100% repatriation of the profits that they have earned from their business. The UAE also has zero restrictions on foreign exchange. The UAE dirham and the US dollar are known to be two of the most stabilized currencies in the world.
- Excellent infrastructure and transportation
Dubai is one of the Middle Eastern countries that has a very effective public transport system. Dubai is also reaching the pedestal of being home to the busiest airport in the world for cargo and passengers. Also, the real estate sector in Dubai is very strong, which makes it easier to set up business in Dubai. The biggest airport is Dubai, and the biggest seaport is the Jebel Ali freezone. Transportation of goods and services is easily possible if you set up your business in Dubai in multiple ways, like air, land, and sea.
- Corporations with global stand
Dubai is becoming the fastest-growing business hub in the global economy. It is also becoming the solid ground of international education and is home to management schools like Hult Business School, American University, Rochester University, the London School of Economics, etc.
- No need to have local sponsorship
Previously, the freezone had a no-sponsorship rule and 100% ownership. The mainland companies were required to have a sponsor who owned 51% of the shares, implying that the majority of the shares are owned by UAE residents.
With the recent advancements in rules and regulations, mainland businesses in Dubai can now operate without the need for sponsorship.
The procedure to start the business is similar to starting every other business in Dubai. The applicant needs to choose the business activity, the structure of the business, trade name, and location of the business, submit the licence application and visa application and create a bank account.
Related post - Reasons Why You Should Setup a Business in Dubai
In this article, we have discussed the benefits and challenges of setting up a business in Dubai for European entrepreneurs. We have also explained how Dubai offers many advantages for foreign investors, such as a stable and growing economy, a strategic location, a favorable tax regime, a world-class infrastructure, and a supportive business environment. We have also outlined the steps and requirements for establishing a business in Dubai, such as choosing a business activity, a legal structure, a trade name, a business license, and a location.
Dubai is a dynamic and diverse city that offers many opportunities for European entrepreneurs who want to expand their business in the Middle East. Dubai has a large and multicultural population, a high standard of living, and a vibrant culture and lifestyle. Dubai also has a competitive edge in various sectors, such as tourism, trade, logistics, finance, technology, and innovation.
If you are interested in setting up a business in Dubai as a European entrepreneur, you can contact us for more information and assistance. We are Kiltons Business Setup Services LLC, a professional business setup consultancy that can help you with all aspects of your business setup in Dubai. We can help you with the legal formalities, documentation, registration, licensing, sponsorship, banking, and more. We can also help you with finding the best location, office space, and staff for your business.
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