Business in Dubai: how to open a company in Dubai
People who have impressive assets on their account often decide to open a business outside their country. If you look at the map of the world, then it is the Emirates that are attracted by their wealth and popularity. To make your plans come true, it is important to know how to open a business in Dubai.
Each country has its own advantages for organizing a business, what is so attractive in the UAE?
- The most important and tempting thing is that there are no taxes in Dubai. In some countries, it is the presence of monthly payments that makes you abandon the plan. Just do not think that in the UAE the state is out of work, since you will have to pay for certain licenses, visas, certificates, etc.
- Another attractive feature is quite simple accounting. This is directly related to the absence of taxes, since there will be no need to occupy the distribution of income, expenses and similar problematic matters. In addition, there is no reporting and preparation of invoices for the state. And there will be no need to conduct double-entry bookkeeping for money laundering, which is common in our country.
- Business in Dubai means simple financial control. You have the opportunity to keep your records as you want, since you do it exclusively for yourself - in order to know how things are progressing in business.
- The UAE has offices of the most successful and global companies around the world. In addition, every year Dubai hosts a huge number of exhibitions in completely different sectors, such as industry, construction, trade, etc. Given this, you will not need to worry about finding potential clients and partners.
These are just some of the benefits that you can get by opening a profitable business in the UAE. Dubai is a city that attracts entrepreneurs from all over the world.
The nuances of our business
Own business in the Emirates sounds quite tempting, but still it is not so easy to organize it. Before starting a business in Dubai, you need to find a sponsor, as it will be very difficult without him. To do this, it is better to go to Dubai and talk to the locals.
In addition, you can immediately research the market in the area of your interest. Only a legally registered company and sponsor can become your sponsor. You will also need to agree on how the settlement will take place with him.
For example, it can be an annual payment depending on a specific rate, or a percentage of profit. A helpful tip is to meet with a local lawyer before negotiating with a sponsor. Banks in the UAE can also come to your aid, which can become sponsors or lenders.
The next thing you need to think about is obtaining a work visa, for which you need to have a certain qualification corresponding to the future activity.
The United Arab Emirates has relatively recently begun its journey as an independent state. However, during this time it has become one of the main players in the oil market, an important tourist and business center, where both the values of the West and the traditions of the East coexist peacefully. Thanks to this, the country has become interesting for investments from all over the world. Consider in this article how to open a business from scratch in Dubai for a Russian businessman, what is needed to register a company in the UAE.
The specifics of the business culture of the Arab Emirates
The Arab Emirates is a deeply religious state. On the other hand, Arabs are historically renowned for their bargaining and negotiating skills. These 2 factors need to be considered when negotiating.
Business meetings are not just an opportunity to discuss plans, pressing issues and contract details. This is a whole ritual that takes place in a room that looks like a living room. All participants are sitting on sofas with a cup of coffee. Arabs are not interested in presentations and manufacturability, documents, booklets. They are interested in how the person talks about the project.
When negotiating, it is important not to rush, let the other side think and not rush it into making a decision. Also, the negotiation process itself is sometimes delayed for several days or even weeks.
Arab companies have a clear structure. It is not customary to delegate here, so often the final decision on all issues is made by one person.
Given the religiosity of local residents, everyone who travels to the UAE for work should carefully consider their appearance. Women should wear closed clothes, for men the best option would be a business suit.
Peculiarities of doing business in the UAE
Doing business in the United Arab Emirates has both advantages and disadvantages.
- Safety and Tolerance. Despite the fact that the majority of local residents are Muslims, they treat people who adhere to a different faith well. A Christmas tree is decorated in hotels and restaurants at Christmas, and Arab business partners always congratulate foreigners on important religious holidays. The crime rate in the country is so low that many do not close an expensive car, leaving it in a public parking lot.
- No corruption. Even 20 years ago in the Emirates, any state body was a deeply corrupt mechanism at all levels. However, the state managed not only to fight corruption, but to completely eradicate it.
- Well-developed infrastructure. It lies in the fact that the country provides opportunities for starting a business of any price segment. There are both old commercial buildings and new ones. Products and services can also be targeted at different consumers.
- A large number of free economic zones. There are 30 of them in Dubai alone. / Li>
- Low cost of employees. Due to the fact that the UAE is popular among labor migrants.
- Uncomplicated taxation system. The state guarantees a significant relief in paying taxes if the goods are sold on the territory of the country, and FEZ companies are often completely exempt from taxes and pay only 5% duty on imported goods.
The disadvantages of doing business in the Emirates are as follows:
- Religion. Despite the fact that the attitude towards other faiths is tolerant, religion determines the key moments of life and business in the UAE.
- Difficulty entering the domestic market. Often the activity of a foreign person is limited to a FEZ.
- Non-residents are unable to obtain bank financing.
However, it is worth noting that it will be quite difficult for a European to open a business in the UAE, since ignorance of the traditions and customs that are revered in this country can have a very negative effect on commercial activities. In addition, the language barrier and legislation play a role and most often it does not play into the hands of foreign investors.
The main problem most often faced by foreign entrepreneurs and businessmen is finding a sponsor. However, even having found one, it is still impossible to believe that this is all over and you can safely do business in the UAE. In order to open your own business and provide it with a so-called bright and profitable future, you need to obtain a work visa and qualifications. No one will allow you to work in this emirate without education and specialization.
What business to do in the UAE?
This question is often asked by foreign businessmen. It would seem that such a wealthy area should not need anything, but it is still possible to find a vacant place. For example, in Abu Dhabi, highly qualified specialists with medical education are in great demand. With a sufficiently good knowledge of the language, it is necessary to pass a qualification confirmation at the Ministry of Health and thus secure a starting position in this industry. It should be noted that the medical sector in the UAE is exempt from certain taxes.
medicine in the UAE is an actual type of business
Emirates welcomes service professionals. So, opening a business in the UAE, which is associated with hotels, catering, shopping and entertainment centers and other objects of the tourist infrastructure and service sector, is practically doomed to success and prosperity. It is important to take into account one important aspect: there are plenty of enterprises of this kind in the United Arab Emirates, but there are not many specialists who know their business. Therefore, when opening a business in this emirate, one should remember that first of all, preference should be given to the quality of service and a decent level of service.
The business of buying and selling real estate, as well as in the field of construction, will be successful. Again, in many ways the determining factor that will ensure the profitability of a business and its prosperity is the quality of the services or goods provided. The local population attaches great importance to this moment.
How to start a business in the UAE?
Each emirate in the UAE has its own characteristics when registering a commercial enterprise. Moreover, the specifics of the business, the form of registration and its scale directly depend on the emirate and its legislative features.
So, in the selected municipality, you need to obtain a license to carry out this or that activity. They, in turn, are: professional, commercial, industrial and trade. The main condition that must be met when opening a business in the UAE is the presence of a partner in the Emirates. It is he who will hold a controlling stake, as well as coordinate the activities of a commercial organization. He was also granted the right to close the enterprise, if it is unprofitable or for any other reason.
Forms of ownership of enterprises in the UAE:
- UAE (Public Joint Stock Company)
- Limited Partnership
- Private Joint Stock Company
- Company (Society) limited liability
- Partnership limited by contributions
There is also just a partnership, but this form of ownership is not available for foreign businessmen. Foreign entrepreneurs should be given preference, first of all, to an open joint stock company and a limited liability company.
There is no person who would say, "My biggest dream in life is to move to Dubai." London, New York or Paris - yes, but not Dubai. Everyone is here for work; it is very problematic to be here without a work visa. This fact forms a definite community of professionals who work and - what to hide - who like to have a good rest. There are certain financial options and market conditions in Dubai that allow many projects to be carried out, and people move here with a clear, as it seems at first, date of departure. For me, the working period was 5 years, which are now just coming to an end, but I did not even think about what to do next and where to go.
There is such a saying: come for 5 stay for 20 (arrived for 5 - stayed for 20 years), and the expat's lifestyle changes your worldview a lot, and until a place appears on the horizon where the salary, the weather will converge , an English-speaking community with a Western lifestyle, attempts to be satisfied with something in between are not being made.
Many worlds coexist in Dubai, which rarely intersect, but they coexist in incredible harmony.
Fredrik Öhlander / Unsplash
Expats hardly communicate with the local population due to differences in lifestyle and daily routine - as a rule, we go to restaurants and various cafes late at night, when the locals are already at home. Anyway, they have no tradition of spending time outside the home. Even the districts of the city are located in such a way that expats live in some, such as Springs, Arabian Ranches, Meadows, while in others, like Jumeirah, they are predominantly local. Both worlds exist with an incredible sense of respect for each other, which is rarely found in any other country in the world, and within the community itself there is a very friendly atmosphere of helping each other in any situations. After all, we live far from our relatives, and many of our friends and neighbors become our family.
How to decide to move
After graduation, I lived in London for four years, and everything would be great if it were not for the sanctions, the growth of the pound and other "pleasant" consequences of the situation in 2021-2021. Nothing foreshadowed a move to Dubai, but among friends and in the business community they constantly sounded: “Why not Dubai?”, And it made me think. I have often heard how easy it is for a European to live there, because everything is there for him. In addition, I explored the Arab art market - completely new and open to many business projects - and discovered very simple and straightforward work relocation procedures.
As a result, six months after the first story about Dubai, I landed at the airport of this city, which, oddly enough, is located almost in the center. The visa is issued very quickly - you need an invitation from the employer or your own registered company, which with the presence of a higher education turned out to be very easy to do, then the visa just needs to be renewed every two to three years. First, you come on a tourist visa, register a company and fly away to collect your things and return for good. There is no system for obtaining citizenship in the Emirates, but since expats have been working there for decades, the introduction of a "retirement visa" is expected in a few years. By the way, according to visa rules, any company where you go to work pays the visa fee and flight - this rule is immutable.
I have always been a person open to other cultures, moreover, they interested me very much, but now I tell my friends: before moving to another country, have an honest discussion with yourself, study your tolerance, on what you are willing to agree to and what you are not. I was ready to work and live in the rules of the Muslim society, however, with a certain percentage of the European population, and no restrictions in dress and behavior, which actually did not appear, did not bother me then.
Ekaterina Plastinina. Photo from personal archive
We suggest you learn how to open a business in Dubai by choosing a profitable direction. The article contains 20 interesting and relevant ideas, including those with minimal investment.
This business for Russians in Dubai requires high start-up costs - $ 450,000. The main expense item is renting premises in a large shopping center. Net profit of the restaurant-confectionery for the year - 70 thousand dollars
How not to burn out?
It is advisable to open such establishments in places with a large flow of tourists.
Restaurant of Russian and Ukrainian cuisine
You can start a business in Dubai by opening a restaurant of national cuisine, since most of the city's residents, including visitors from Russia and other CIS countries, work a lot, and they do not have time to cook at home.
Investments - 300 thousand dollars, the amount of net profit per month - 25 thousand dollars. To get a profitable business, rent premises for a restaurant near the offices of large companies.
Business lunch delivery
If you can negotiate with 2-4 companies on delivery of food for lunchtime, then you will not have to spend money on renting premises. Starting a business in Dubai will require 15-20 thousand dollars from you at the start. Net profit per month - 3-5 thousand dollars