How to Start a Business in Dubai with 100% Ownership

Introduction

Dubai has taken its place among the most revered business cities in the world. The city is well known for its location, infrastructure, and low taxation policies. It has turned into a haven for investment and new businesses. What’s better to add to that, is the recent change in the laws with regard to the flagship businesses. So now and for many businesses sectors, no local sponsor is required and 100% foreign ownership is allowed.

As a foreign investor, this is a plus as you have full control over the business, the profits and all decisive making. If you are someone who’s always wanted to open a business in Dubai, now would be the best time. 

Why Choose Dubai for Business Setup?

Dubai is not simply a city like many others; in fact, it is a center of international trade and commerce, which has characteristics that no two locations can boast about.

• Economic and strategic advantages.

Dubai is a hugely important city that is situated between the three continents. It gives businesses a strategic placement along with direct access to emerging markets. Moreover, the economy is broad and strong with chances in trade, tourism, logistics and many more.

• Business-friendly policies and tax benefits.

  Dubai offers exemption from taxes for the vast majority of firms, this includes a personal income tax and low VAT. It is therefore highly talented investors are looking to find the best place to invest. 

• Dubai’s vibrant business ecosystem: Mainland vs. Free Zone.

  Dubai has also fostered business opportunities for companies ranging from innovative free zones designed for SMEs to commercial areas provided by the mainland.

Understanding the Process of Business Setup in Dubai

Setting up a business in Dubai can be done in one of two ways: as a Free Zone or as a mainland company. A mainland company has the ability to do business throughout the UAE territory without any restriction. Thus the ability to do business in the local as well international markets. They require a local sponsor or agent, but reforms in some areas mean that 100% foreign investment is allowed. On the other hand, a Free Zone Company has full ownership and tax exemption, and it is easy to set up, but only allowed to do business within the Free Zone and/or offer services outside the Free Zone. It is important to choose the correct option based on your operational needs, plans and market needs in order to maximize success of your business model.

Mainland companies

 This is a more centralized approach whereby a residentCan operate anywhere within the mist of the United Arab Emirates and conduct business in the local market, 

Key Advantages:

•  Being able to conduct business anywhere across UAE
•  Being able to win government bids and local business.

Free Zone Companies

Dubai Free Zones are a mainstay economic regions that have set guidelines and regulations enabling smooth and easy establishment, no tax requirements, and the ability to repatriate 100% of the profits made. 

 Key Advantages:

• 100 % ownership obviously not requiring a local sponsor.
• Not applicable to import and export tax.

The choice depends on the main business activity, strategic geographical markets, and what business structures are required.

Steps To How to Start a Business in Dubai

Although its impression might look complicated, registering a company in Dubai can be made easy if divided into stages;

• Conducting market research.

Visit the target market first before you decide to launch your product. Looks like it has clients, competitiors and potential growth. While Dubai offers a diversified economy with many opportunities, having done the market research is crucial for you to take off in the right direction.

• Choosing a business activity and trade name.

Selecting the area of operation will warrant your applicable licensing wheather commercial, trade or professional. The same applies in selecting a trade name, it has to be informative, identifiable and fit local laws in United Arab Emirates.

• Partnering with Dubai business registration services for smooth processing.

Understanding the rules and following them can be burdensome for many businesses. A professional service provides assurance, right from submission of business documents to receipt of all the desired approvals.

Dubai Business Registration Services: Key Role in Your Setup

Opening a new business requires arduous legal and other formalities but business registration services ease the burden: 

Legal documentation and approval procedures.

They assist you in all the paperwork including the Memorandum of Association (MOA), which will explain the purpose of establishing the company, along with acquiring permits and necessary approvals.

Ensuring compliance with UAE regulations.

Compliance with the laws of the UAE is very important. You are aware of the change in rules and regulations in order for your operations to run smoothly from the start, business registration services assist you with this as well. 

Business License Assistance in UAE

Operations without a business license are impossible. Depending on what business you want to establish a variety of licenses are provided by Dubai which integrates itself with your business. 

• Commercial License: For all activities related to the trade and commerce sector in general. 
• Professional License: Aimed at business people providing services within consulting firms or who are freelancers.  
• Industrial License: Construction and all other forms of production activities.

Achieving a Business License in a Few Steps   

1. You will need to get your Memorandum of Association and trade name reserving documents ready as they are prerequisites for submission.  

2. Choose what licensing you need and pay the related fees.  

3. DED or Department of Economic Development and other associates need to give their approval as well. 

With expert assistance, you will be able to minimize the chances of issues arising in the licensing process which includes submitting wrong documents.   

Key Considerations for 100% Ownership

In order to acquire stake in some sectors of the economy, the Dubai government has recently made it easier for foreigners to buy 100% of local businesses, in such scenario, a local partner or a sponsor will no longer be required. This is a game-changer.  

• Regulations specific for Free Zone   

   There have always been 100% control granted to free zones which appealed international investors.  

• Changes in Policies Related to Mainland   

Recent developments allow foreigners to now establish 100% of businesses in more domains in recent years so that real estate has been part of the expansion of capacity and retention of profits.    

• Benefits of Going for 100% Ownership

  1. Operational procedures of the company will be entirely handled and managed by you.  

  2. No need to have a partnering local with whom you can share the profits, full access of profits will be attained.  

  3. The degree of freedom in expanding and making decisions will noticeably increase.

Costs and Timelines: What to Expect?

It is important to note that the establishment of a business includes expenditures which variable according to the set up chosen by the clients themselves.

• Common Cost of Setup in Mainland: Generally consists of higher regulatory licensing fees along with office space costs. 

• Common Set Up Cost in Free Zone: More cost effective in most cases as there are packages for new ventures. 

Approximate Timeline  

Business set up and licensing in Dubai may take from 5 days to a few weeks. The number of weeks will singularly depend on how complex the mode of set up is.  

How BizDaddy Will Help You?

Starting a business in Dubai can feel overwhelming, but BizDaddy does everything step by step:

• Assisted Commencement Setup: They assist you in selecting either mainland or free zone based on what your business requires. 

• Policy Control: There are also no uncertainties because their team makes sure that businesses will always comply with laws of UAE protecting them from expensive mistakes. 

• Albany and Lasting Assistance: They will even work with you after the business has commended which will include working through amendments to changes expanding the business. 

Conclusion

Today, launching a company in Dubai, which grants 100% ownership to the company owner, is much simpler than it used to be. The city’s geographical advantages, its inclination towards businesses, and changing laws help to position Dubai as one of the most preferred places for doing business. By working with professional service firms, such as BizDaddy, will make your set-up process without any hassles.

Whether you are a founder today of a company, or have been running business for years, there is no shortage of possibilities to expand in Dubai. Get started right away and do business in one of the most exciting hubs across the globe.