Why Should European Set Up A Business In Dubai,…
The business climate in Dubai is quite encouraging and inviting. Several businesses in Dubai are flourishing because their growing economy presents many opportunities to Europe investors. Historically, Dubai and Europe share a strong business tie. Recently, Europe investors, startups and big companies have shown renewed interest in the business setup in Dubai. European investment in Dubai covers a diverse range of business sectors such as tourism, e-commerce, IT, real estate, trade, financial services, transport, food processing etc.
Furthermore, it will be more beneficial for European entrepreneurs to hire business setup consultants in Dubai, because it will make the licensing process easier. Consultants can provide the investors with the right answer to key questions such as how to set up a business and where to set up a business etc. Read ahead to know more:
To entice business investments, Dubai is super TAX friendly. This has been one of the biggest reasons why Europeans and USA investors go to UAE for investments. Corporate tax, Income tax and import/export tax are not charged to businesses. The only significant tax in UAE is Value Added Tax (VAT), and is set at a flat rate of 5% since January 2018.
Dubai Expo 2020
Expo 2020 opened its doors in Dubai on October 1, 2021, in which the European countries were top participants. It is one of the biggest events in Dubai and the Middle East. The Expo will last for six months and millions of foreign visitors come to Dubai looking for a property to rent during their stay. This is why buying a property during Expo 2020 will bring high returns due to the increasing demand during the event.
Expo Dubai 2020 involve:
- 200+ participating organization
- 277,000 new jobs in UAE
- 25 to 100 million increases in visitors
No need of partnership with Local UAE National
Earlier, only free zones in Dubai allowed the 100% ownership benefit with certain restrictions on local trade. But now, not all the business setups in UAE need a local Sponsor in Dubai mainland. For example, Professional companies do not require partnership with a UAE national and can be under 100% foreign ownership.
Even small companies in UAE do not need a local sponsorship and can enjoy 100% ownership, Such As:
- Coffee shops
- IT Services
- a cafeteria
- consultancy licenses
Technological Hub of the Middle East
The tech industry in Dubai is growing rapidly. This city has already been tagged as a city of the future due to its visionary leadership. Foreign Investors have put their money into the latest technology tools across the sector to boost their businesses. Dubai is leading the way to the future by being open to the development of artificial intelligence, virtual reality and cryptocurrency. In addition, the pandemic made us realize that technological development is no longer a luxury, but it’s necessary and inevitable.
Dubai Real Estate Sector have a variety of opportunities
UAE’s real estate sector has been tagged as the most transparent in the North Africa and Middle east. Currently, Market is on Top with not even a single sign of slowing down. The area of business in Dubai is perfectly adapted to European investors who follow the real estate sector in the emirate. According to a report in Khaleej Times, foreign investors continued their foray into Dubai and ended the first quarter of 2022 on a high note. According to the report, European investors dominated the market in the first quarter. The UK, Italy and France were the European countries that led the list of best investors. With the renewed demand for real estate, business setup consultants in Dubai can help Europeans set up real estate-related businesses in the emirate.
Dubai lifestyle is one of the most desired lifestyles in the world. UAE has been votes as the safest city in the world to live and work, and best for Business entrepreneurs. It has been the home of across 10 million people around the globe and 80% of the residence are business entrepreneurs. European investors call Dubai their luxury destination. UAE provides easy global connectivity to the world. Dubai’s airport is known as the world’s busiest airport. Because of its strategic location, it is easy to connect with suppliers in the Asia, African and Middle East subcontinents.
Visa by investment in Residential Property
One of the greatest perks that attract European investors to invest in Dubai is its property visa. European investors can apply for it, if they have at least AED 1 million or more in property investment. The visa length varies between 3 to 5 years and can also maintained as long as investor have property in the Dubai. In addition, Dubai recently announced that the Golden Visa will provide a 10-year residency for:
- exceptional students
- specialized talents
- coding professionals
- specialized talents
Moreover, the green visa provides 5 years residency for skilled professionals without any sponsorship. Both the visas make it convenient for the business holders to sponsor their families.
Forming a company is UAE
Company formation in Dubai, includes:
- Pick an Industry
- Decide on a Location
- Choose a Unique Business Name
- Complete all the Incorporation Paperwork
- Get a Proper License
- Open a Bank Account and Manage Visas
The first step of company formation in Dubai is to decide the company type appropriate for your business. Forming a company in Dubai’s free zones is highly recommended. A Dubai free-zone company allows European investors to have 100% ownership of the company, 0% incorporate Tax and income Tax, no currency restrictions, 100% capital repatriation, and 100% import and export exemption of Tax.
If you are considering to setup your business in Dubai, contact Beyond View business setup. As we are committed to providing best services, Experienced business setup consultants, Registered agents for business setup. We guide you from start of your business setup process till the establishment.
You will only have to follow a few steps, and make your business name in the industry. We hope the reasons mentioned in this blog have illustrated why the European investors must initiate the process of business setup in Dubai. However, investors need to navigate a series of legal requirements to leverage these benefits for which they can seek the advice of business setup consultants in Dubai. The additional benefits that come with it are a one-of-a-kind option for living a tension free life in the UAE.