Dubai is a highly welcoming nation for tourists. The competitive landscape for starting a business is also amazing in Dubai. Starting a business in Dubai can be very advantageous since you have access to a skilled workforce, a prominent location at the intersection of Asia, Europe, and Africa, and the allure of working in a nation with little to no taxation.
Dubai offers a large and positive pool to start an investment for the expats. You can form a company in the Emirate without a second thought.
Top reasons to start a business in Dubai in 2022
- Ranked #1 in Arab world — Dubai innovation Index
- Ranked #1 in the Arab world and 3rd globally in FDI attraction
- Ranked #3 best city for expats — Inter Nations Expat city Ranking 2021
- Ranked #4 best destinations for international travelers
- Ranked #5 in the list of 10 cities in the world for 2021- Best Cities
- Ranked #14 Global power city index 2021.
Did you know?
In the first quarter of 2022, Dubai issued 24,662 new business licenses, up 58% from the first quarter of 2021, which implies that Dubai is the number one choice for expats worldwide. (* Source — Gulfbusiness.com)
What was the existing law for businesses in Dubai?
Previously, establishing a mainland business in Dubai required finding an Emirati citizen who would be entitled to be the local sponsor for the company and would hold 51% of the total shares in the company.
But with the Commercial Corporations Law (CCL) modified by the UAE’s Ministry of Economy in June 2021, thus permitting foreign investors and expats to establish and fully own onshore enterprises. This paved the way for new companies to hold 100% Ownership in Dubai Mainland.
Understanding the 100% Ownership in Dubai Mainland
Eliminating the previous law of 51% ownership by a local sponsor, UAE now has the provision of 100% Ownership in Dubai Mainland. The main benefit of having a mainland company is that, unlike free zone companies, their economic operations are not limited to a specific geographical area, allowing them to freely trade with any company, public or private, located within and outside of the UAE, including free zones, onshore and offshore.
With 100% ownership of business in UAE, you now get access to a bigger reach with a mainland structure, which means you have a better opportunity of extending your business worldwide, which means more prospects and money. Other benefits of establishing a mainland business in Dubai include no minimum capital need and the potential of acquiring a resident visa.
This is, however, restricted to a few businesses and depends on the nature of your business activity in Dubai. IVF Clinic Sharjah