If you’re interested in the idea to open business in Dubai, invest now while the local government actively supports new companies and investments. Doing business in the Emirates is also quite easy for foreigners. Companies in Dubai are springing up throughout the United Arab Emirates (UAE) thanks to the country’s welcoming business climate and the availability of long-term investment permits.

In 2017, 131,000 companies were officially recognized in the UAE. The fact that 80% of the population was born outside the UAE further adds to the country’s attractiveness as an investment destination.

Additionally, in 2019, the UAE said that 122 economic activities across 13 sectors would be open to 100% foreign ownership. Renewable energy, logistics, the hotel industry, the food service industry, and manufacturing are among the most prominent examples of these companies in Dubai areas. Keep in mind that every Emirate has the authority to set its own regulations.

Before you open business in Dubai, you should consider many factors. Start by looking at the most popular sectors. Another important step is checking for unmet needs and sought-after products. The oil and gas industry, along with the automobile and aerospace industries, is thriving right now. The food and drink industry, along with advertising and marketing, also has room to expand.

Who is Eligible to Start a Business in the United Arab Emirates?

To open business in Dubai is not hard—in fact, it’s not hard at all. The government provides numerous incentives for doing so, which is why it is so popular. The most important point to keep in mind is that, with the exception of sole proprietorships, the majority of business structures in the UAE need an Emirati partner to possess 51% of the company. After that, all you have to do is register and license your business. You may also be required to have a certain amount of capital on hand.

The UAE Free Zones are the greatest aspect of establishing a company in the UAE. Investors from other countries often choose to set up businesses in these special places. They have zero-tax policies for both individuals and corporations, complete exemptions for imports and exports, and 100% foreign ownership.

Company Structures in the United Arab Emirates

Choosing the right business structure to open business in Dubai is an important first step for anyone looking to launch a company in the United Arab Emirates. Just as in any other country, the Emirates has a wide variety of legal corporate structures. Some of the most typical ones, together with the criteria for meeting them, are listed below.

1. Sole Proprietorship

In this business structure, a single person owns the business and has complete authority over all activities and profits. A sole proprietorship can be formed by anybody, but only citizens of the United Arab Emirates or a Gulf Cooperation Council member state can own a commercial or industrial business.

2. Civil Company

Legal, medical, and accounting professionals are among those who are eligible to form a civil company in the United Arab Emirates. The company can only have 51% ownership by nationals of the UAE.

3. Association for Limited Liability Companies (LLC)

Up to fifty people can be shareholders in a limited liability company. Therefore, everyone is only responsible for the extent of their shareholding. Also, stockholders get a cut of the earnings and losses based on how much they own. Once again, a national of the UAE must possess 51% of the shares. A limited liability company (LLC) that has more than seven partners is required by law to have a board that includes three shareholders.

4. International Business Unit

An international company can open business in Dubai in form of a branch. In this situation, the parent business owns the subsidiary entirely. However, you can’t import anything without going through a local trading company.

5. Enterprise Operating in a Free Zone

Two or five interested parties are required to open business in Dubai in a free zone. Settling in one of the UAE Free Zones has several advantages, but one must be aware that these businesses cannot engage in direct trade with the UAE market. Thus, the necessary steps to launch a company there are different. For example, XYZ can function without funding. In contrast to KIZAD LCC’s 150,000 AED minimum requirement, the Dubai Airport Free Zone’s 1,000 AED minimum share capital is sufficient.

Conclusion

Our comprehensive service for company registration at QSM Dubai extends far beyond the processing of papers. We thoroughly review the strategic aspects of your company’s paperwork to make sure it is strong, legal, and appropriate for both domestic and international commercial dealings. Contact us for more information when thinking to open business in Dubai.