The emirate of Dubai, which is an emirate of the U.A.E has emerged on the global business scene as a business and company setup hub because of its strategic location, business-friendly environment and state-of-the-art infrastructure which makes it an ideal destination for various businesses. Dubai offers various benifits to a wide range of industries ranging from tax benefits of free zones, broad market reach of mainland companies to international appeal of offshore entities. In addition to this Dubai attracts skilled workforce and professionals from across the globe, making it easier for businesses to hire talented employees locally. Dubai is the world’s gateway to the Middle East, Africa and Asia and as a result a business in Dubai has easy access to global markets. Entrepreneurs wishing to establish a business or a company in Dubai should carefully evaluate their business model, target market and long-term goals to choose the most suitable business setup that aligns with their vision for success in this dynamic city.
The process of any business setup and company formation in Dubai involves an understanding of the legal requirements, business structures and local regulations. Dubai offers different business structures, all with different advantages to an investor. It is upon the investor to decide which business structure suits his business plan the best. In Dubai one of the most common business structure is the Limited Liability Company (LLC), where a foreign investor can hold 100 % ownership of the company. Another option is a free zone company which also offers 100% foreign ownership and tax benefits. Companies established in the free zones operate with greater autonomy and enjoy various tax and customs duty benefits. An investor can also opt for an offshore business setup which also offers tax benefits and full ownership, however it is restricted from conducting business within UAE and must operate exclusively from outside the country.
A free zone company or a trade setup operates in the designated special economic areas in Dubai called free zones. Business setup in a Dubai free zone is popular amongst the investors of the world as Dubai has gained the reputation of being the land of vibrant business opportunities and exceptional economic growth. The Dubai government has implemented business-friendly laws and taxation policies for businesses to grow and to flourish in its free zones and because of these incentives setting up a free zone company in Dubai has lots of perks and opportunities for entrepreneurs from around the world.
Being a part of the mainland business community lets companies connect and work together with other local businesses, opening avenues locally for partnerships, synergies and potential business chances. A mainland business setup allows businesses to operate across the entire country instead of being confined to a specific free zone. Entrepreneurs who wish to setup a mainland business don’t need a local sponsor, who would typically hold a 51% share in the company previously. Mainland companies enjoy the advantage of being able to participate in lucrative government contracts and jobs as mainland entities, which opens for them avenues to generate revenue and business prospects at the local level. Local businesses have a view of mainland companies as being more trustworthy and accessible to them thus enabling a mainland business entity to create business connections and collaborations easily. Mainland companies have the freedom to participate in various business activities without limitations, thus opening up a wide range of business operations and opportunities. A mainland business has the freedom to select their office location based on their specific business requirements anywhere in mainland Dubai which allows it to strategically position itself in areas that are best suited for its operations. For those seeking a broader market reach within the UAE, establishing a mainland business setup is a viable option.
Setting up an offshore business setup or company in Dubai provides a profitable environment for international investors as an offshore business setup benefits from tax exemptions, full ownership and confidentiality. An offshore company in Dubai is typically used for holding assets, estate planning and for international trading, however it is restricted from conducting business within UAE and must operate exclusively from outside the country. In Dubai, Jebel Ali Free Zone Authority (JAFZA) is known for its offshore business setup and services.
