Myths about starting a business in the UAE
Starting a business in the UAE is easier than it seems. Small investments, convenient taxation system, high purchasing power of citizens – all these factors attract entrepreneurs. Let's consider the main myths related to doing business in the Arab Emirates.
Citizens of many countries are not accepted in the UAE: only the citizens of the UAE achieve success
In fact, doing business in the UAE is available to anyone who speaks at least a little English. In Dubai, you will have to communicate with people of different nationalities and faiths and you need to find a common language with everyone. Most people in the UAE speak English perfectly, so you won't have any problems with communication.
Business registration in the UAE is a complicated procedure for foreigners
According to statistics, 95% of companies in the Emirates are owned by private entrepreneurs. At the same time, 89% of the population are foreigners. Therefore, most of the firms are founded by foreigners.
Local laws protect foreign investors, as attracting external capital is extremely important for the Emirates. You can start a business in Dubai in just a few weeks; all you need is to process the documents properly and with the help of a consultant.
Local laws protect foreign investors, as attracting external capital is extremely important for the Emirates. You can start a business in Dubai in just a few weeks; all you need is to process the documents properly and with the help of a consultant.
Lack of qualified employees to hire
The majority of the UAE population are visitors from other countries. The service staff are citizens of India and the Philippines. Middle managers are citizens of the post–Soviet space and Egypt. Top–class specialists are citizens of the United Kingdom and the United States. There will be no shortage of employees as you can hire staff for your business, conduct interviews, study CVs.
Bad attitude towards women
Impossibility for a woman to start a business in the UAE is just another myth. Dubai is a modern city with a fairly progressive society. Women can hold senior positions there, get an education, run a business. Foreigners are not required to cover their heads; the burqa is worn only by Muslim women. There are also no restrictions on clothing and only excessively explicit images are not welcome.
5 mistakes when starting a business in the UAE, which cannot be corrected
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Cruel laws and traditions
Business registration in the UAE and life in the Emirates are strictly regulated by the articles of the current legislation. The laws are strict, as befits a multinational state. At the same time, the laws in Dubai work: it is safe to live there.
As for traditions, Dubai is almost a European city. Cinemas, beaches, cafes, sports centers are available in the Emirates.
As for traditions, Dubai is almost a European city. Cinemas, beaches, cafes, sports centers are available in the Emirates.
You need to have a co-founder
Starting a business in the UAE does require the involvement of a third party. You will need to enter into a partnership agreement in which a local resident will have 51% of your business. However, they will not receive your profit. The co-founder receives a strictly regulated amount each month for the provision of services.
There are also ways in which you will be the only founder of the company. To do this, you need to establish a legal entity in the free economic zone (the Emirates have more than 50 such zones). This is the easiest option for a foreign citizen. Another way is to get a license. To do this, you will have to prove that you are a professional in your field.
There are also ways in which you will be the only founder of the company. To do this, you need to establish a legal entity in the free economic zone (the Emirates have more than 50 such zones). This is the easiest option for a foreign citizen. Another way is to get a license. To do this, you will have to prove that you are a professional in your field.
Dubai is only suitable for sheikhs and millionaires
To start a business, investments will be required. However, starting a business in European countries is associated with high taxes, while in Russia it is connected with long bureaucratic delays. In the UAE, you can count on benefits and the launch of the company within a couple of weeks.
The most popular niches are information technology, beauty salons and trade. The articles of the current legislation do not provide for income tax, VAT is 5% and applies only to certain areas of activity. Thanks to strict laws, corruption is excluded.
Doing business in the UAE is a profitable, but not an easy process. Here are the myths that prove that you will have to work hard to get started:
1. You can open a company in a few days. In fact, you will be able to start working in about a month. If you plan to rent an office with renovation, add a couple more months to this.
2. You can get a bank account in two days without personal presence. This only works in Russia. In the Emirates, you need to submit an application and wait for a response within 10 days. At the same time, the staff presence of the entrepreneur when opening an account is mandatory. That is why banks in the UAE are distinguished by a high level of trust and security.
3. First, you can open a company with one founder, and then add more participants. At the initial stages, it is important to think over the further structure of the company. The registration authority charges a separate fee for each amendment to the statutory documents. To make any changes, their own tariffs are provided.
4. It is cheap to open a business in the Emirates. Of course, it's cheaper than in Europe. There are no taxes here, but there are regular government licensing fees, that's about $4,100 a year. Do not forget about the costs of renting an office, solving visa issues for the employees.
5. Official authorities provide reliable information. In the Emirates, nothing can be taken for granted. Government agencies, providers and banks can give different information, so it needs to be rechecked. Have the courage and patience, ask to call a senior employee. The best way is to enlist the support of a professional consultant.
Starting a business in the Emirates is profitable and inexpensive, if you know the local peculiarities, laws, and find a profitable field of activity. The most profitable niches today are online retail stores, beauty salons, tourism, information technology and construction. To start your own business, it is enough to speak English as most local residents and representatives of government agencies will understand you.
Are you looking for a company that will help you start a business in the United Arab Emirates? Leave a request for a free consultation in the field below, and our specialists will contact you within 15 minutes. You will be informed about the timing of opening a business in the UAE, possible options and cost. Business in such a prosperous and developing country as the Emirates is closer than you think. Take the first step towards your dream!
The most popular niches are information technology, beauty salons and trade. The articles of the current legislation do not provide for income tax, VAT is 5% and applies only to certain areas of activity. Thanks to strict laws, corruption is excluded.
Doing business in the UAE is a profitable, but not an easy process. Here are the myths that prove that you will have to work hard to get started:
1. You can open a company in a few days. In fact, you will be able to start working in about a month. If you plan to rent an office with renovation, add a couple more months to this.
2. You can get a bank account in two days without personal presence. This only works in Russia. In the Emirates, you need to submit an application and wait for a response within 10 days. At the same time, the staff presence of the entrepreneur when opening an account is mandatory. That is why banks in the UAE are distinguished by a high level of trust and security.
3. First, you can open a company with one founder, and then add more participants. At the initial stages, it is important to think over the further structure of the company. The registration authority charges a separate fee for each amendment to the statutory documents. To make any changes, their own tariffs are provided.
4. It is cheap to open a business in the Emirates. Of course, it's cheaper than in Europe. There are no taxes here, but there are regular government licensing fees, that's about $4,100 a year. Do not forget about the costs of renting an office, solving visa issues for the employees.
5. Official authorities provide reliable information. In the Emirates, nothing can be taken for granted. Government agencies, providers and banks can give different information, so it needs to be rechecked. Have the courage and patience, ask to call a senior employee. The best way is to enlist the support of a professional consultant.
Starting a business in the Emirates is profitable and inexpensive, if you know the local peculiarities, laws, and find a profitable field of activity. The most profitable niches today are online retail stores, beauty salons, tourism, information technology and construction. To start your own business, it is enough to speak English as most local residents and representatives of government agencies will understand you.
Are you looking for a company that will help you start a business in the United Arab Emirates? Leave a request for a free consultation in the field below, and our specialists will contact you within 15 minutes. You will be informed about the timing of opening a business in the UAE, possible options and cost. Business in such a prosperous and developing country as the Emirates is closer than you think. Take the first step towards your dream!
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