You think of having your own business almost every night before sleeping buthit the ground the next morning swinging your feet out of bed to run to your 9-hour routine job.You are all of adither at the moment maybe because you believe in some misconceptions about business formation in Dubai like many which you should not! Why let others’viewpoints decide your destiny?This wall of misconceptions must be chipped away if you want to bring your dream of establishing a company in Dubai to fruition.
There are so many myths about business setup in Dubai that are sure to surround you when you are about to start your entrepreneurial journey in the emirate. But myths are meant to be broken! And that’s what we are here for today! Standing the test of time for more thantwo decades as one of the leading business setup companies in the UAE, we understand what challenges aspiring entrepreneurs have to confront when they are in the land of business opportunities with a dream of setting up their own company. Ahead we are going to deal with one of them by debunking five most infamous myths about Dubai when it comes to starting a business.
4 Most Common Myths About Business Setup in Dubai
Myth1:The city is expensive, so is the business setup here
Lacking substantial agricultural enterprises, manufacturing plants, or natural resources, Dubai, without a doubt is one of 14 most expensive cities in the world. Almost everything used or consumed in the twinkling emirate of the UAE comes from somewhere else. It’s pretty much easy to conceive that business formation in Dubai. But you areallowed to take the statement with a pinch of salt or two! Because not every business setup in Dubai needs hefty investment.
Think content writing/creation, SEO &digital marketing servicesand legal/financial/immigration consultancy! There isa cartload of small business ideas that can be a huge success in a heartbeat. For instance, you can start from a home-based business and then take it outside once it has gained adequate recognition. And if that doesn’t suit you then there are plenty of ways you incorporate a full-fledged company in Dubai without breaking the bank. One of them is by making low-key choices.
For instance, company formation in a Dubaifree zone that boasts negligible or zero share capital requirements, easy accessibility to ports and affordable offices. With nil corporate tax, personal income tax plus duties on imports, exports and re-exports, free zones further slashthe cost of establishing and running a business in Dubai. An experienced business setup advisor in Dubai can help you form a company in the most cost-effective way.
Myth2: Setting up a business in Dubai is cheaper when you DIY
Usually, entrepreneurs embark on their very first business journey in Dubai with limited funds and skimp on hiring a business formation consultant assuming that their service feewill add to the overall business setup costs in Dubai. Fair point! But have you even thought of those expenses which are likely to crop up because neither they are well acquainted with business formation process nor with the rules and regulations in the UAE.
Unsurprisingly, they may end up paying for preparing unwanted documents,rectifying the discrepancies in documentation or making wrong choices or decisions on their way. However, working with one of the most experienced business setup consultants can save you from allthese costs and potential mistakes that you might commit being new to the process.Plus, they will help you to plan out the estimated cost of the business as well! And the joy of joys is you can focus on more important things with a mental peace that the work is being done by experts and they are there always even after the company is up and running!
Myth3: Successful business formation in Dubai is only possible if you know everything
This is true that rules and regulations keep changing in the UAE. And not knowing them can’t be an excuse for being non-compliant to them and land you in trouble. But when it comes to business setup in Dubai, you don’t have to have in-depth knowledge of everything. You get the requiredassistance from the chosen jurisdiction’s representative. And if that’s not adequate you may always trust a business setup services provider in Dubai. The ultimate goal of you is incorporation of company in Dubai the right way which doesn’t require much effort or expert industry knowledgefrom you if an efficient Dubai business advisor is by your side taking care of all the paperwork and spadework involved.You should familiarise yourself with the process a bit though to get prepared for what’s coming!
Myth4: Free zone business formation is cheaper than mainland business formation
A swarm of people gravitates to Dubai free zone licence to enjoy myriad benefits that are offered to foreign investors by the free zone authority in Dubai – ranging from 100% business ownership to zero taxes on businesses toaffordable yet all-inclusive business formation packagesto simplyproactive, expert business setup assistance which gives birth to a common myth that free zone company establishment in Dubai comes cheaper than the mainland company. However, the believer of this misconception must weigh the pros and cons of both jurisdictions before making the final decision.
Also, they are highly advised to look at the mainland business option through a different lens from this year onwards.UAE’s Year of the Fiftieth (50th), 2022 has brought with it a blizzard of remarkable changes in thebusiness landscape of the country and amendments in the UAE Commercial Companies Law (the New Law) is one of them. Now a mainland company can be fully owned by expat business persons and established without the need of involving any local Emirati partner. And as far as the newly-implemented corporate tax is concerned, restriction-free trading will easily let you forget the burden if you think from the scalability perspective of your business.
Plus, the licence renewal cost that you have to pay every year also can’t be ignored. Further, we would say that do not get confused with these rebuttals. We are not siding or against any specific jurisdiction but trying to convey that the cost of setting up a company in Dubai depends on a variety of factors! And top of all, it’s not about what is cheaper or best for you, it’s about what’s right for you and your company in the long term. You can’t just see the immediate benefits!
These four misconceptions, if left unchecked, can rob you of happiness and success and make you feel like a failure before even you get started. The best way to steer clear of any misconceptions about business setup in Dubai is to get in touch with one of the best Offshore Company Formation UAE business formation specialists in the UAE.