The most common myths surrounding the mainland licenses of Dubai are complexities in procedure and restrictions of rules, making many believe that setting up a mainland company is not an easy task. However, all these are much simpler than perceived. This guide will help clear off some common myths about the mainland license procedure.
Myths vs Facts About Mainland Licenses in the UAE
Myth 1: Setting up a business in Dubai is complex and time-consuming.
Fact: The UAE government has streamlined the business setup process, making it relatively straightforward.
Indeed, the UAE has taken great steps towards making it easy to set up businesses, with ease in company setup available to entrepreneurs. An online registration platform is also implemented, which enables the businesses to do much of the paperwork and formalities online. This has considerably reduced the time and effort required for starting up the business. In addition to online registration, the UAE government provides a range of support services in order to enable business at various stages of its development.
Myth 2: Foreigners cannot own 100% of a company in Dubai.
Fact: Foreigners can have full ownership.
Until recently, before June 1st, 2021, foreigners needed a local partner holding 51% of the company’s shares. In 2021, however, the Commercial Companies Law dropped this requirement and allowed for 100% foreign ownership for most businesses operating in Dubai, as well as the UAE.
While 100% foreign ownership is now generally possible, specific sectors such as oil, gas, and energy may still have restrictions, where it would be necessary to partner with a reliable UAE national.
Myth 3: Dubai levies excessive taxations and strict control over laws.
Fact: Dubai provides a good venue for business because of its friendly setting and regulations, along with relatively low taxes.
Dubai provides an extremely facilitating environment for business, with various tax exemptions and simplified procedures:
- Corporate Tax: Dubai has a minimum corporate tax rate of 9% hence, that makes it a destination for companies seeking to locate an area where they can optimise their tax obligations.
- No Personal Income Tax: It does not levy any kind of personal income tax, making it an attractive destination for individuals and businesses alike.
- Value Added Tax (VAT): The VAT may be exempted to specific sectors or enterprises as a relief.
- Simplified Procedures: The UAE government has established effective processes regarding the establishment of businesses, issuance of licenses, as well as conduct of day-to-day operations.
Myth 4: It’s expensive to start a business in Dubai.
Fact: There are various cost-effective options for starting a business, including free zone companies and mainland companies with limited liability.
Dubai boasts various business structures and incentives for SMEs. With the right setup and support, you can start a business in this world-class setting at a reasonable rate.
Myth 5: The language barrier can be a challenge for foreign businesses.
Fact: English is widely spoken in Dubai, and many government services and business professionals are fluent in English.
The cosmopolitan nature of Dubai and the prevalence of the English language make the environment even more friendly for a foreign business. At the same time, a multi-culture city enhances understanding and respect among the various cultures toward one another. English is the common language for communication, which combines to facilitate foreign businesses in going through local businesses with relative ease while being able to communicate effectively with clients, partners and staff.
Conclusion
Setting up a business in Dubai is quite viable and very rewarding. A proper understanding of the facts will help to overcome commonly found myths, make better decisions, and overcome obstacles that could arise during the whole process. With the right guidance and mentorship from business setup experts like Gatestone Group, you can be on the road to establishing your business in this bustling metropolis.
Let us take care of the complexities of setting up your business in the UAE. Our team is here to assist you every step of the way. Email us at [email protected] or call us at +971 4 450 1023 to schedule a meeting with one of our expert consultants.
