Setting up a business is never easy as it takes a lot of time and effort in the beginning. Whenever a person thinks of starting a venture, many people have random myths that end up becoming hurdles in their mind to entrepreneurship.
Similarly, there are many misconceptions about a business setup in the UAE as well and it is important to bust these myths with facts.
The UAE government's objective of driving innovation and creativity through entrepreneurial activity guarantees that the country supports many industrial sectors. The country’s excellent amenities and strong economic presence have made it a popular international business location. However, despite all the support and facilities, entrepreneurs hesitate to enter the UAE business market.
Here are some of the most common myths about business setup in Dubai.
Myth 1: Business setup in the UAE is expensive
This is one of the common myths entrepreneurs hear before starting their business journey in the UAE. But the truth is, these assumptions are false.
Dubai is heaven for the entrepreneurs. Starting a business in any country will cost a lot of money but the UAE offers you the ease of doing business. Additionally, the government of the United Arab Emirates has assigned zones for entrepreneurs namely- Free Zone, Mainland, and Offshore that provide attractive options for low-cost business setups.
Another advantage of doing business in Dubai is enjoying tax breaks and significant exemptions that boost profitability and lower operating expenses. The only tax you need to worry about is the business tax, which lightens the regulatory burden.
For example, here are some approximate costs for three most popular niches:
IT business: The average price of opening an IT company in the best UAE Free Zone ranges between USD 7,700 and USD 14,000.
Beauty salon: Licensing fees will be about USD 8,700, and the rent of premises in the nicest neighborhood of Dubai starts from USD 17,700 per year.
A trading firm: It can cost you between USD 7,700 and USD 14,200 to open a trading firm.
Myth 2: Business Setup Complications in Dubai
In answering the myth of business setup complications, it is important to highlight that Dubai has the highest percentage of foreign entrepreneurs. Nearly 90% of the population in Dubai are expats. So, if you go through the facts, you will realize that setting up a business in the UAE isn’t complex. You are ready to dive into Dubai’s business world with just three easy steps;
- Availing of a UAE Trade License
- Obtaining Residency Visa
- Setting up a Corporate Band Account.
Myth 3: Need for a local sponsorship for business setup
People think partnering with local sponsors is mandatory for a smooth business setup but it is not necessary. Areas like free zones offer 100% foreign ownership and don’t need any local sponsorship. The UAE free zones are the simplest and most beneficial option for any foreign entrepreneur. You can enjoy complete ownership benefits and run your business without any compromises.
Myth 4: Dubai is tough for women entrepreneurs
Dubai is one of the most modern countries in the world. The myths about the hurdles for women entrepreneurs aren’t true. UAE is a progressive country in the Middle East range. Adding to this, the UAE has become the first country in the world to make a rule for organizations to include women on the board of directors.
Moreover, 23,000 Emirati businesswomen run projects worth more than AED 50 billion and occupy 15% of posts on boards of various chambers of commerce and industry in the country. This highlights gender equality in the region.
Myth 5: Entrepreneurs must know the Arabic language
The UAE is located in the Middle East. Nearly every country speaks the Arabic language in these regions. It is important to learn and understand their native language but it is false that every entrepreneur should know Arabic. Furthermore, the country has more than 90% expats and the most spoken language in the country is English.
If you are planning to start your business in Dubai, don’t get confused by these myths. The world is evolving rapidly, and every country aims to attract foreign entrepreneurs and investors to increase FDI.
The international business environment of the UAE is challenging, but it is easy to enter. However, not everyone can keep up with ambitious professionals and big investments from around the world. That’s why seeking help from a business solutions provider is important to guide you in the right direction.
Contact MarkAI Corporate Services, your trusted Business Setup Consultant, today! Our team of Company Setup Consultants will guide you through a smooth and seamless business setup in the UAE, ensuring you're ready to capitalize on the multiple opportunities this dynamic market has to offer.
Reach out to us at - +971 50 479 8992 or mcs-info@mark-ai.com to discover how we can help you capitalize on the multiple opportunities that the UAE has to offer.
