Setting up a business in Dubai Thriving Market offers exciting opportunities, especially with the advantages of operating within a free zone. This guide aims to demystify the process of establishing a free zone business, highlighting the benefits, potential pitfalls, and essential steps based on personal experiences. Whether you’re an aspiring entrepreneur or looking to expand your existing business, understanding the nuances of Dubai’s thriving market structure can be crucial to your success in this dynamic market.
We’d like to imagine that there are several reasons why you are looking to move to Dubai and start a business in Dubai Thriving Market. This could mainly be because of the luxurious lifestyle that Dubai offers for its residents. However, some business owners choose to operate their business in Dubai without being physically present here. That is a viable option for you as well.
Regardless of the sector or type of business you want to start, it’s possible that there is no better place to do it than Dubai. Its strategic location at the crossroads of the world makes business travel a breeze, while also attracting investors and customers from around the world. The policies in place for foreign owned businesses create an enabling environment where business can thrive, together with a healthy support system of entrepreneurs from around the world who can offer you valuable advice and insights.
What is a Free Zone?
By now, you’ve probably done a lot of your own research on what a free zone is. In simple terms, a Free Zone is a designated area where a foreign owned business can enjoy certain benefits during their operations. Each Free Zone in Dubai has its unique set of advantages offered to businesses and along with these benefits comes a set of rules that the business must abide by.
If you want to set up a business in Dubai Mainland, then you would need to have the backing of a local Emirati partner where he or she would own a majority of your company. However, with a free zone company, you can enjoy 100% foreign ownership. This will give you total control of your business and the decisions that you would have to make as the business owner.
More benefits of operating a free zone business in Dubai Thriving Market include:
- Tax exemptions (value-added tax, corporate tax, and income tax)
- 100% repatriation of your profits and capital
It is clear that Dubai really does want to attract even more entrepreneurs to set up shop here and therefore, the government is doing everything within their capacity to make this an enabling environment for entrepreneurs. The process is extremely easy as long as you do your research of the freezone you want to set up your business in. Below is the story of a business owner who did not do enough due diligence and was met with an unfortunate situation –
“When choosing the freezone to start my business, I selected one in Ras Al Khaimah which is one hour away from Dubai. The main reason why I picked this one is because it was the cheapest option. It was also close to where I was living at the time. However, this did not work out for me as I had to shut that entire business down. I am not saying that I was cheated, it is just that I didn’t know about the regulations. I didn’t know that I would need an office space when my business grew. When the time came to make my first hire, I was informed that I needed to have an office space for this which didn’t make sense for my business. I also had an issue with visa renewal and I was fined due to a lapse on my part. So it is very important to stay on top of the game all the time. Eventually, I set up my business again in another freezone in Sharjah which made more sense for my operations and the type of business I run.
What’s really interesting is that Dubai has different free zones with different specializations. So let’s go through the steps that you will need to take in order to set up your business in Dubai Thriving Market.
- You are going to research and find your best free zone that is best suited to you.
- Complete your application. This will generally include things like deciding on your company name and business activities, and you’ll have to fill in the forms. You may need to provide some kind of identification and possibly some additional documents, depending on the free zone you’ve selected.
- You will submit your application along with your payment. Most free zones have different fee structures, so be sure to ask your agent about what to expect.
- Once your application is approved, you will receive your business license and any other necessary approvals. This can take a few days to a few weeks, depending on the free zone, so be sure to check with your agent about their expected timelines.
- You can then apply for your visa. You’ll need to prepare and submit your visa application along with any relevant documents, such as proof of your business activities, copies of your passport, and photographs.
- You can open a bank account for your business. Once you have your business license and your visa, you can approach a bank to open a business account. This is an essential step because you’ll need a business account to manage your finances properly.
Lastly, we want to give you a few tips to keep in mind as you embark on your journey:
First: Always ask questions! If you’re not clear about something, don’t hesitate to ask your agent or other business owners.
Second: Network! The more you connect with other entrepreneurs and business owners in the UAE, the more you’ll learn.
Third: Keep your paperwork organized. From the application process to your ongoing business operations, having everything in order will save you time and stress.
How Can SetHub Help?
We hope this blog has given you more clarity and guidance on setting up a business in Dubai Thriving Market. As we have outlined, one of the most important responsibilities you will have as a first time entrepreneur in Dubai is to do a lot of research in regard to the free zone that you want to go with. With over 40 free zones available for you, each will have their own advantages and terms and conditions. If you don’t know where to start and feel like you can benefit from some expert guidance, SetHub’s team is here to help. We are well versed in all of the unique offerings that each free zone brings. All you have to do is set up a call with us and we will revert what we think would be the best fit for you! SetHub will be your partner in progress as you get your business up and running in Dubai.