The authorities in the UAE are currently in the long-term plan of changing the economic focus of the country from the oil and gas industry. As a result, they are making the markets in the country easily accessible to investors and entrepreneurs from all over the world. They are doing this by making it easy to start a business in the UAE, as well as providing various incentives to attract foreign investment.
Benefits such as 100% exemption from corporate and personal taxes, 100% repatriation of capital and profits, 100% exemption from tariffs on export and import, etc. play a huge part in the success of their plan. However, these benefits would not matter if the ease of doing business in the country was not up to the mark. Although the UAE authorities have announced 9% corporate tax starting June 2023, it does not affect Freezones therefore expats can still benefit from 0% tax and enjoy all the current benefits.
One of the main reasons it is so easy to start a business in the UAE is due to the availability of business consultancies in the UAE. These firms consist of experienced experts who help both locals and foreigners to start their businesses. Due to the networks and connections these consultants have made, they can often start your business cheaper than if you started it without their service.
The UAE has three types of economic jurisdictions, each of which caters to different types of businesses and their needs. The three economic jurisdictions are the mainland, the free zones, and offshore companies. Each of them has its own advantages and benefits. However, the free zones are what make the UAE so attractive to entrepreneurs.
Availability of free zones
The free zones in the UAE incorporate the policies of free trade so that all the participants in the market have a fair playing field. As a result, there is no discrimination between the locals and foreigners in terms of doing business here. Besides the free zones, other economic jurisdictions do not allow 100% ownership of businesses in certain sectors to foreigners. However, no such restrictions exist in the free zones.
Each of the free zones has its own regulatory body that is independent of the government of the UAE. This makes business formation easier and faster in the free zones compared to the mainland. Since the goal of the free zones is to encourage trade, they facilitate the growth of businesses located within their respective borders. The ease of doing business in the free zones is further facilitated by the lenient regulatory laws. Businesses within the free zones can freely trade within the respective free zone and outside the UAE.
Different free zones in the UAE cater to businesses in different industries. For example, Dubai Healthcare City Free Zone caters to the needs of businesses in the healthcare industry. Since all the healthcare-related services can be found in this free zone, people with healthcare issues will look for solutions here. This means that individual free zones attract consumers related to the industry that they specialize in.
Easy and fast business setup
The factors that determine the ease of doing business in a country include the ease of setting up a business in a country. The UAE ranked first in the world in terms of getting electricity. Other factors like availability of business consultancies, corporate PRO services, easy visa, and recruitment processes make it very easy to set up and run a business here in the UAE.
The steps included in the business setup processes in the UAE will depend on where you are setting up your business. Since the main objective of a free zone is to make it easy to conduct business within its borders. It is always easier and faster to start a business in one of the free zones here. However, thanks to expert business consultants, you can easily start your business on the mainland as well. All you need to do from your part is to provide the necessary information and documents, and the consultants will take care of the rest.
After you have established your business in the UAE, you need to recruit workers or employees to work for you. After the formation of your company, you can sponsor some visas depending on the size of your office space. This essentially means that the entire world is your talent pool. You can also sponsor the visas of your spouse, children, parents, and one domestic worker making both your personal and business life easier.
Accessible expert assistance
There are a lot of options in terms of office space, company structure, economic zone, business activities, etc. in the UAE. Even though more options offer more versatility, they can also cause confusion and later regret. This is where the experts come in. Different kinds of businesses will need different types of office space, legal structure, etc. For example, if your business does not need a physical office space to operate from, then a virtual office will be the best option for you.
