Dubai, renowned for its glittering skyline and thriving business world, holds a multitude of opportunities for entrepreneurs worldwide. Beyond the well-known aspects of business setup in this vibrant city, there are some lesser-known facets that can influence the success of ventures. Find here useful tips for smooth business setup in Dubai.
Economic diversification initiatives:
While Dubai is often associated with luxury and tourism, the emirate has been diligently working on economic diversification. The Dubai government has been actively encouraging businesses in emerging sectors such as technology, renewable energy, and healthcare.
Blockchain and technology hub:
Dubai is positioning itself as a global hub for blockchain and emerging technologies. The city aims to fully implement blockchain in various government services by 2021. Entrepreneurs engaged in blockchain-related ventures may find a supportive ecosystem and opportunities for collaboration with government initiatives.
Entrepreneurial support ecosystem:
Dubai is fostering a robust ecosystem to support entrepreneurs and startups. Initiatives like the Dubai Future Foundation and various innovation centers provide mentorship, funding opportunities, and resources for emerging businesses. Entrepreneurs can tap into these networks for guidance and growth.
No income tax, but be mindful of VAT:
One of the well-known attractions of setting up a business in Dubai is the absence of personal and corporate income taxes. However, it’s essential to be mindful of the Value Added Tax (VAT) implemented in 2018. Understanding and complying with VAT regulations is crucial for businesses operating in Dubai.
Strategic geopolitical location:
Dubai’s strategic location between Europe, Asia, and Africa makes it a gateway for businesses seeking global connectivity. Entrepreneurs can utilize the city’s logistical advantages for trade, import-export, and distribution activities.
Virtual company licenses:
In response to changing business dynamics, Dubai has introduced virtual company licenses. This allows entrepreneurs and freelancers to operate digitally without a physical presence. This innovative approach opens new avenues for remote businesses and digital nomads to establish a legal presence in Dubai. While the concept of free zones is well-known, the sheer variety of free zones in Dubai is often underestimated. Each free zone caters to specific industries and offers unique benefits. For instance, Dubai Internet City for technology companies, Dubai Media City for media-related businesses, and Dubai South for logistics and aviation.