Dubai has been a great destination for foreign entrepreneurs to set up a business for over a decade and continues to be a commercial haven even in 2024-2025. It offers a unique blend of financial benefits, a strategic location, and a thriving business ecosystem. With 68% of expats reporting satisfaction in the UAE and 37% planning retirement there – the city fosters a high quality of life.
Foreign entrepreneurs are particularly drawn to Dubai due to multiple reasons! However, in this article, we will analyze the top 3 reasons why foreigners consider a business setup in Dubai Mainland or Free Zones as an attractive option!
Lower Taxes & Simpler Taxation Policies:
Ask any business setup consultants in Dubai and they will tell you that the city is still a tax haven! With the lowest percentage of corporate tax, 0% income tax, and 100% foreign ownership for almost every business activity. This advantage is amplified in Dubai’s Free Zones, where even VAT is waived on residential properties.
Here is a List of Taxation Ease for Company Formation in Dubai
- Corporate Tax: 0% Corporate Tax: For taxable income up to AED 375,000, supporting small and medium-sized enterprises (SMEs) and startups.
- 9% Corporate Tax: For taxable income exceeding AED 375,000, which is competitive globally.
- No Personal Income Tax: Individuals do not pay personal income tax, making Dubai financially attractive for expatriates and professionals.
- Value Added Tax (VAT): 5% VAT: Implemented in 2018, one of the lowest VAT rates globally.
- Exemptions: Certain sectors and goods are exempt from VAT, reducing the overall tax burden.
- Tax Exemptions for Business Setup in Free Zones: Companies in Free Zones enjoy tax exemptions, including no corporate tax for a specified period.
- Simplified Taxation: Streamlined tax processes and fewer compliance requirements.
Social & Business Friendly Reforms:
Recent reforms empower foreign entrepreneurs with 100% business ownership in most sectors, eliminating the need for a local sponsor. Dubai’s ranking high in the World Bank’s Ease of Doing Business index further underscores its efficient regulatory environment, making business setup in Dubai Mainland and business setup in Dubai Free Zone smooth and hassle-free.
Here are a Few Business-Friendly Reforms:
- 100% Foreign Ownership: Recent reforms allow full ownership for foreigners in most sectors, eliminating the need for a local sponsor.
- Ideal For International Trade: Dubai’s central hub between continents and world-class infrastructure make it ideal for international trade.
- Supportive Ecosystem: The government actively supports entrepreneurship through initiatives and streamlined procedures.
Social Reforms that Attract Foreigners to Set Up Companies in Dubai:
- Liberalized Environment: The UAE has introduced progressive laws like tougher harassment penalties for women, decriminalization of alcohol consumption and cohabitation. This shift towards a more secular legal system aims to make Dubai more attractive to expats.
- Skilled Workforce: Dubai’s diverse population provides access to a talented international workforce for your business.
- High Quality of Life: Dubai offers a safe, secure environment with excellent infrastructure, healthcare, and public spaces.
Beyond this, Dubai boasts a central location between Europe, Asia, and Africa. The government actively fosters business growth through streamlined setup procedures and various initiatives.
Long-Term Residency & Easy UAE Visa Policies:
While the UAE boasts a booming population, Emirati nationals make up only 11%. Traditionally, expatriates haven’t enjoyed the same rights as Emiratis, with residency often tied to employment. This meant leaving after a job ended, taking their investments and expertise elsewhere. Recognizing this, the UAE is now actively encouraging foreigners to put down roots.
Currently, Dubai provides strong visa policies aligned with business setups to flourish. Even visa acquisition is reportedly effortless as noted by 80% of respondents.
Here are Some UAE Visa Options for the Trailblazers:
- Golden Visa: This long-term residency option is perfect for entrepreneurs and exceptional talents. It allows you to live, work, and study in Dubai without a national sponsor, giving you the freedom and flexibility to manage and grow your business.
- Pathway to Citizenship: This prestigious program, launched in 2021, grants citizenship to select professionals like investors, scientists, and business leaders. Imagine – visa-free travel across the GCC and a simplified business landscape!
For the Established and Experienced:
- Property Investor Visa: Considering real estate investment? This visa is perfect for those who invest in residential property valued at AED 1 million or more. It typically comes with a 2-year renewable visa, allowing you to enjoy Dubai while managing your investment.
- Business Investor Visa: Have an eye for a thriving business opportunity? This visa caters to those who invest a minimum of AED 72,000 in a business or shares of an existing company. It usually grants a 3-year renewable visa, giving you ample time to establish your presence and see your investment grow.
- Employment Visa: This is the most common option for expatriate workers and is tied to a specific job offer. It’s a straightforward way to get started if you’ve landed your dream role in Dubai.
For the Discerning Retirees – Retirement Visa:
Planning a luxurious golden age under the Dubai sun? This renewable five-year visa is perfect for those over 55 who meet specific financial criteria.
Beyond the Basics – Other Visas:
There are also specialized visas for students, medical tourists, and other specific purposes.
So, how do you get started? Speak to a CorpCreators Business Setup Consultants in Dubai to set you ball rolling!
CorpCreators: Your Gateway to Business Success in Dubai as a Foreigner
Dubai’s progressive reforms, combined with its inherent strengths as a business hub, make it a truly compelling destination for foreign entrepreneurs in 2024-25. Here’s a recap of why you should consider Dubai:
- Thriving Ecosystem: Dubai boasts a supportive environment with streamlined processes, tax advantages, and a skilled workforce, fostering business growth.
- Strategic Location: Its central position between continents and world-class infrastructure makes it ideal for international trade.
- High Quality of Life: Dubai offers a safe and secure environment with excellent infrastructure, healthcare, and public spaces, making it attractive for you and your employees.
- Open Doors: Dubai welcomes foreigners with a variety of visa options, making it easier to establish yourself and your business.
CorpCreators: Your Partner in Dubai Success
While Dubai offers a fantastic launchpad, navigating the legalities and formalities can be complex. That’s where CorpCreators comes in. We are a business setup consultancy firm dedicated to helping foreign entrepreneurs like you navigate the process seamlessly.
Our Team of Experts Will:
- Guide you through visa options based on your specific needs and qualifications.
- Handle company registration and ensure compliance with regulations.
- Advise on business structures and legal requirements.
- Assist with opening corporate bank accounts.
With CorpCreators by your side, you can focus on your business vision while we handle the groundwork. Let’s turn your Dubai dream into a reality.
Contact CorpCreators today for a free consultation!
