10 Facts About Starting a Business in Dubai
05 March, 2015
Entrepreneurs are quite excited about the prospect of opening up a business in Dubai. It offers quite a few benefits and really very few drawbacks. Its an attractive location for many different types of business, and the fact that the economy in the area is as strong as it is right now merely adds to the benefits. Lets look at ten interesting facts about starting and running a business in the city.
Fact #1: You May Need a Local Sponsor
If you are opening up a business in Dubai, and you are not setting up in one of the free zones, you will need to have a local sponsor. In those cases, the sponsor will have 51% ownership of the company, and you will have just 49%.
Fact #2: In the Free Zones, You Own the Business
However, if you open up a company in one of the eighteen free zones in Dubai, you will be able to have full ownership of the company. Many who are starting companies in the area choose to go into the free zone for this reason, even though it offers quite a few other benefits as well.
Fact #3: Companies Take Care of Employee Visas
If you will be bringing employees from your own country to Dubai to help run the business and work in the business, your company is responsible for helping them to get the resident and work permits. You will want to start this process as soon as you know who you want to bring to Dubai.
Fact #4: Choose the Right Business Type and License
The free zones allow different types of businesses and offer different types of business licenses. You need to make sure that you are registering the company correctly and that you choose the right licenses for your business operations.
Fact #5: You Need to Choose the Best Location
You can start companies in a number of different areas in Dubai, including the various free zones. Make sure that you are choosing the best location for your type of company though. Look at the pros and cons of the different areas and the types of businesses that are in those areas now.
Fact #6: Dont Hold Meetings and Appointments on Fridays
Fridays are days off and most offices/business are also closed on Saturdays. This is something that you will want to remember when you are setting up meetings and appointments.
Fact #7: Pay Attention to Body Language
Body language can be as important, or more important, than what people say in Dubai. Look for elements of their body language that tell you when it might be time to change your approach.
Fact #8: Face to Face Meetings Are Best
Most of the business people in the UAE prefer having face to face meetings. Phone calls are the next best thing to actual meetings. Try to avoid written communication such as emails whenever discussing important business.
Fact #9: Dont Worry About Taxes
One of the best things about setting up a business in Dubai is that you will not have to worry about taxes! There is no corporate tax or capital gains tax.
Fact #10: Much of the Workforce is Foreign
You might expect that most of the workforce is from Dubai, but thats not the case. There are so many foreigners living in the area now that the workforce is highly diverse.
As you can see, there is quite a bit to know when it comes to starting and running a business in Dubai. While you can do it alone and get your company set up through the government, having some help from a reputable and experienced consultant can help quite a bit.
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