Starting a business in Dubai: Now is the right time

Published: Thu 24 Nov 2022, 1:23 PM

Last updated: Thu 24 Nov 2022, 1:25 PM

There is no better time than now to start a business in Dubai. You may be inclined to dismiss such an opening note as clichéd or an oft-repeated adage. However, considering the impressive economic developments over the last two years, this statement looks more relevant than ever. More foreign investors are shifting their base to Dubai to leverage some of the progressive economic reforms implemented by the government such as long-term visas and complete foreign ownership.

Follow us on Google News-khaleejtimes

The new reforms have made a positive impact on the landscape of business setup in Dubai as evidenced by the inflow of foreign direct investments (FDI). As per the data from the Dubai FDI Monitor, the city raked in Dh15.9 billion in FDI across 378 projects in the first nine months of 2021. Data like these are a strong indicator that now is the best time for company formation in Dubai. Let’s analyse why now is the right time to open your company in Dubai:

Long-term residency with Golden Visa

Foreign investors, entrepreneurs and skilled professionals now have plenty of options to make Dubai their second home by securing a wide range of long-term visas. The Golden Visa is your best shot at ensuring a 10-year renewable residency in the UAE. The Golden Visa eligibility is open to investors, entrepreneurs, scientists, specialists, outstanding students and graduates, humanitarian pioneers, frontline workers and skilled workers. No sponsor is required to get a Golden Visa in the UAE and the holders of this visa can sponsor their families as well. You can avoid the hassle of obtaining the visa by seeking the assistance of business setup consultants in Dubai.

Five-year Green Visa, the game changer

By getting a Green Visa in the UAE, the holders can sponsor themselves for five years. Green Visas can be a game changer for Dubai as it eliminates the need for a visa sponsor. The Green Visa holders can easily get residence permits for their family members such as spouses, children and even first-degree relatives. Investors/partners, skilled employees and freelancers can apply for the UAE Green Visa. The application process can be made easy by applying through business setup advisors in Dubai.

Entry permit to seek business opportunities

The UAE has introduced a business entry permit that doesn’t mandate the requirement of a sponsor or host. By getting this visa, foreign investors and entrepreneurs can come to the UAE to explore the business and investment opportunities available here. It is advisable to vail for business setup services in Dubai to know further about this visa.

Regulatory framework for virtual assets

The environment of doing business in Dubai has transformed dramatically in recent years. This dynamism of Dubai’s business setup landscape come to the fore when the government issued a law for regulating virtual assets in the emirate. The government of Dubai established Virtual Assets Regulatory Authority (VARA) this year to regulate virtual assets such as cryptocurrencies. Apart from developing general policies related to virtual assets, VARA will also regulate and issue permits to virtual assets service providers planning to establish a company in Dubai.

Complete foreign ownership of mainland

Registering a company in Dubai mainland had one key disadvantage attached to it. Up until recently, partnering with the UAE National was a mandatory requirement for company incorporation in the UAE mainland. Foreign investors found this requirement highly restricting as the UAE National Sponsor was entitled to at least 51 per cent of the shares in the company.

Many foreign entrepreneurs started their companies in the UAE free zones to navigate this ownership restriction. Free zones, however, allow businesses to carry out trading within the free zones only. All this changed when the local sponsorship requirement was scrapped by the UAE government recently, paving the way for 100 per cent foreign ownership in mainland companies.

Operation 330bn for industrial companies

Investors who are in the industrial or manufacturing sector can incorporate a company in Dubai to leverage the UAE’s Industrial Strategy called Operation 300bn. The strategy aims to develop the UAE’s industrial sector and boost its contribution to the national economy. Through this strategy, the government aims to increase the industrial sector’s contribution to the GDP from Dh133 billion to Dh300 billion by 2031. The strategy is founded upon core goals such as:

Develop the UAE industrial sector

Increase the in-country value (ICV) of the sector

Create job opportunities in the industrial sector

Make the UAE the global hub of future industries

Enhance the reputation of locally-made products through exports to global markets

The Entrepreneurial Nation Project

Registering a business in Dubai as a startup or an SME offers unparalleled advantages to entrepreneurs. The UAE supports entrepreneurship through various programmes and projects and the Entrepreneurial Nation Project is the biggest initiative among them. Under this project, the government aims to establish a private equity fund of Dh1 billion to support UAE-based start-ups and SMEs operating in major sectors. The chief goal of the project is to make the UAE home to 20 unicorns by 2031 by attracting skilled professionals and foreign capital into the country.

Jitendra Business Consultants: Pioneers of company incorporation in Dubai

When it comes to starting a company in Dubai, this is the right time for foreign investors as the government has implemented a wide range of economic reforms. However, without the assistance of business setup consultants in Dubai, you will be left in the lurch like a mariner sans his compass. Business setup advisers such as Jitendra Business Consultants (JBC) can lead entrepreneurs in the right direction with their sound advice. JBC is part of Jitendra Consulting Group (JCG), which is one of the most reputed company formation service providers in Dubai with more than 20 years of experience. JBC provides all business services under one roof such as company formation, company liquidation, value added tax (VAT), corporate tax advisory, economic substance regulations (ESR), anti-money laundering (AML) and ultimate beneficial ownership (UBO).

More news from KT Network