Entrepreneurship in Dubai has always been a sought-after choice for business people across the globe. Being strategically positioned , possessing world-class infrastructure and having a booming economy, the city is full of opportunity. But to be successful in your enterprise, you should learn about the new Dubai business setup rules. Whether you're an emerging businessperson or increasing your current business , familiarity with the new rules will save you time, money and undue hassle.
In this guide , we will take you through the most crucial regulations surrounding business setup in Dubai. By the time you are done reading , you will have a full understanding of how it is done, what you need to prepare for and why having a professional business setup company in Dubai like Bizvise can make the whole process smoother.
Dubai is among the world's most business-friendly cities, but that is not an excuse to forego compliance. Rules and regulations are there to provide smooth operations , level competition and protection for investors.You may face penalties , delay or even the loss of your license if you fail to do things the proper way in a business set up in Dubai.
That’s why keeping up with the latest laws is so important for any new business setup in Dubai. Let’s dive into the most relevant updates every entrepreneur should know.
1. 100% Foreign OwnershipPreviously, most business sectors in Dubai required a local Emirati sponsor who owned 51% of the company. This was one of the main challenges for foreign entrepreneurs.
Now, with the new regulations, investors have 100% foreign ownership in the majority of business activities. This is a breakthrough for Dubai business setup, particularly for small and medium enterprises.It gives entrepreneurs complete control over the business without the need for a local sponsor , except for a handful of strategic areas such as defense, oil and utilities.
Key takeaway: When organizing your new business setup in Dubai, verify if your business is qualified for 100% ownership it will be more convenient and flexible.
2. Licensing Categories and ActivitiesAll businesses in Dubai need to have a license, and you need to select the appropriate category that fits your activity. The three principal license categories are:
In the new system, over 1,000 activities can be licensed. In case of a business setup in Dubai, it is imperative to choose a proper license category. A wrong choice may postpone approvals or restrict your business activity.
Pro tip: A reliable business setup company in Dubai can assist you in determining the precise activity list applicable for your business.
3. Free Zone vs Mainland RulesOne of the earliest choices you'll make in your Dubai business setup process is where to set up your company , on the mainland or a free zone.
Free Zones provide advantages such as 100% foreign ownership , tax exemptions and reduced import or export procedures. But free zone companies typically have limitations when conducting direct business in the UAE mainland.
Mainland Companies enable you to conduct direct business throughout the UAE and acquire government contracts but have higher regulatory requirements.
Latest developments now offer free zone businesses greater autonomy to conduct business beyond their zones following certain regulations , which makes Dubai business set up more appealing than ever.
4. Golden Visa OpportunitiesThose entrepreneurs establishing a new business setup in Dubai can currently be eligible for the UAE Golden Visa program. The long-term residency scheme is for investors, entrepreneurs and skilled professionals.
If your company achieves certain investment levels or is making considerable contributions to the UAE economy, you may be able to obtain a 10-year residency visa. This is an enormous boon for entrepreneurs seeking stability and long-term prospects.
5. Corporate Tax ImplementationAmong the most discussed changes in Dubai business setup laws is the implementation of corporate tax. From June 2023 , corporations with an annual turnover of over AED 375,000 will be liable for a 9% corporate tax.
But companies incorporated in free zones and in compliance with rules of compliance can still avoid tax. That is why selecting the appropriate jurisdiction for your business set up in Dubai is essential.
Key takeaway : If you are setting up a new business in Dubai , ensure you know how corporate tax is applicable to your industry and jurisdiction.
6. Visa Regulations for Entrepreneurs and StaffThe UAE has made its visa systems simpler to facilitate Dubai business setup for investors. Businesses can sponsor visas for staff more easily now, and entrepreneurs can apply for investor visas or the Golden Visa.
The amount of visas you're able to apply for usually depends on your business activity and office space. Therefore, if you're looking to build up your team, include this in your business set up in Dubai plan.
7. Digital Transformation and Online ApprovalsOne of the greatest advances in recent years is the move towards digital government services. From initial submissions to trade license renewals, all but a few steps in Dubai business setup are now done online.
This minimizes paperwork and makes the process quicker for a new business setup in Dubai. But , although the system is more convenient , it can still be daunting for first-timers who are not conversant with the portals and requirements.
8. Renewal and Compliance RequirementsPlacing your company is just the beginning.You must also adhere to renewal and report regulations:
Failure to adhere to these regulations may lead to fines or suspension of your license.It is due to this reason that most businesspeople opt for a business setup company in Dubai to do the renewals and compliance for them.
Though the laws have relaxed, the process of business setup in Dubai remains daunting for new investors. From selecting the correct jurisdiction to documentation and approvals, a professional ally simplifies the journey.
At Bizvise, we are experts in assisting clients in:
Consulting a seasoned Dubai business setup company is time-saving , error-minimizing and enables you to dedicate your time to expanding your business rather than paperwork.
ConclusionDubai remains one of the top spots on the planet to begin and expand a business. However , to prosper, entrepreneurs need to be up-to-date with the newest Dubai business setup laws. From foreign ownership of 100% to corporate tax information , these regulations have a direct impact on how you form and operate your company.
If you’re planning a new business setup in Dubai , don’t leave things to chance. Work with a trusted business setup company in Dubai like Bizvise to ensure compliance and a smooth start.
With the right knowledge and expert guidance, your business set up in Dubai can unlock incredible opportunities in one of the world’s fastest-growing economies.