The business ecosystem in Dubai is continually termed as one of the most market-friendly economies in the world. Many investors and people in business see an immense appeal in starting their business in Dubai. There are many reasons for the attractiveness of Dubai as a business centre. A highly developed and stable policy ecosystem, the pro-market taxation regime, and connectedness to important trade hubs along with highly mature end-to-end infrastructure connectivity make Dubai the perfect place to start a business.
There are two business jurisdictions in Dubai: mainland Dubai and also the free zones. Both operate according to different sets of guidelines. Based on the type of business that one seeks to set up, there are many crucial benefits that give the advantage to mainland Dubai against anywhere else in the world.
Easy Setting Up
The endless legal contracts and forms to fill constitute a major hurdle for business owners who are just starting. To support the up-and-coming businesses, the Department of Economic Development of Dubai has streamlined the process of setting up the company by making help and mentorship highly accessible throughout. There is also no requirement for a yearly audit. The whole process is very straightforward and will not act as an obstacle to the company’s early-stage growth.
Availability of Office Space
The business once set up, is free to establish the office(s) anywhere in mainland Dubai. The vibrant and diverse nature of mainland Dubai’s economy means that the availability of perfect executive office space will never be a cause for concern for business owners. Many establishments in Dubai provide well-connected and fully equipped office spaces, including collaborative office spaces that will cut costs and make networking easier.
The complexity and severity of taxation are some of the factors that keep business owners on their toes. However, mainland Dubai has an extremely market-friendly tax system that will help businesses save up a big chunk of their profits. Notably, for a very large range of businesses under an income threshold (except for those working in the oil and gas sector and branches of foreign banks), corporate tax is zero!
Mainland companies in Dubai are allowed to trade with other mainland companies. In contrast, the companies set up in a free zone are only allowed to trade within their designated free zones. This ability to trade and collaborate with other mainland companies makes networking and new partnerships easy. Besides, companies in the mainland can conduct business in any part of the UAE and beyond. The growth prospects of companies situated in the mainland are higher, and this strengthens their appeal. Collaborative office spaces in Dubai, which are easily accessible, make it easier to partner and network with other companies, as employees from many businesses work together in the same shared space.
Other Eased Restrictions
Many other restrictions are removed or limited for companies established in mainland Dubai. For instance, there is no restriction on the number of visas obtained with a mainland license. Mainland businesses are also allowed to work for the government, whereas free zone businesses are not allowed to do so. The currency restrictions for businesses in the mainland are limited to none. A mainland license also allows the company to trade internationally, thereby strengthening the scalability of the business.
These advantages make the placement of companies in the mainland appealing and enhance the economic potential of the businesses in the region. With its geographically strategic location at the heart of Dubai and its excellent infrastructural facilities, mainland Dubai offers new companies an unparalleled degree of support, flexibility, and freedom.