Expanding your business from Qatar to Dubai
Expanding your Business from Qatar to Dubai
As perhaps the most well known of the seven states that make up the United Arab Emirates, Dubai draws investors from the world over to settle in this economic hub. But why? What is it that attracts investors to Dubai in particular?
With its rapid expansion and a reputation for entrepreneurial innovation, Dubai has certainly proved it has plenty to offer investors over recent years. It is a high profile destination with an open market and attractive tax incentives, which continues to offer expansion in a range of industries.
For UK investors in particular, Dubai holds significant appeal. British goods and services are held in high regard in Dubai. Meanwhile, throughout the Emirates, there is a desire to develop their own populations, which makes UK training, education and consultancy a valued commodity.
Business opportunities abound for those with experience and training in the UK. Some key industries that continue to do well in the Emirates include business services and IT, financial services, education and healthcare, creative industries, and transport and infrastructure.
But no matter where you hail from, Dubai offers substantial potential for success for the right business. It’s simply a matter of establishing a need, and working out whether your business is able to cater to that need while taking home a profit.
And those tax incentives? Investors in Dubai can benefit from an absence of corporate and income tax, personal income taxes, zero foreign exchange controls, and 100% repatriation of capital and profits.
In terms of continued growth, Dubai will see further expansion thanks to Expo 2020, plus the creation of Dubai South and the Dubai Canal. The UAE is also scheduled to invest more than $300 billion in new tourism-related infrastructure between now and 2030, while continuing to invest in upgrades to general infrastructure.
If you have already experienced success starting a business in Qatar and are now looking to expand to Dubai, there is plenty to consider. You already understand the many factors associated with company formation in the Middle East, and this knowledge gives you a good head start.
Similar to Qatar, if you choose to create a Limited Liability Company (LLC) in Dubai, you will need a local partner to hold at least a 51% stake in your company. By finding a trustworthy business partner, you can benefit from their local experience and knowledge, while your partner ensures all processes and procedures are followed so that your business is set up correctly.
However, if you choose to set up in one of Dubai’s free zones, you won’t need a local partner. It’s worth noting that setup in a free zone does not suit every business (for example retail stores and restaurants), but if you plan to work with onshore businesses, a free zone enterprise may be your best bet. Bear in mind, rental and purchase costs in free zones can be prohibitive to some start-ups.
To make the right choice, think about whom your target market will be, and what activities your business will undertake. Think about the type of visas you will need, and the processes you will need to go through for permits and licences, such as company registration.
You will need to decide on the structure of your company (an LLC is just one option), the minimum share capital requirement (there is no minimum share capital deposit for LLCs, however, there is a minimum for public companies, insurance and investment companies and financial institutions).
From there, consider any legal requirements and any special considerations. Depending on the nature of your business, you may have to consider your office space and whether it’s fit for purpose, and whether specific ministries need to be notified of your start-up.
Finding the Right Assistance
Okay, so there is a lot to take in. Setting up in Dubai may be slightly easier if you already have knowledge of setting up in Qatar, but still, the processes involved and the legal requirements vary from Qatar to Dubai, so it’s always worthwhile seeking advice from an experienced partner.
We can help. At Fusion Middle East, we can act as your local partner in Dubai, as well as Qatar, giving you the support and local advice you need to ensure you get set up in the quickest, safest way. Call us now to find out more – and set up your free, no-obligation consultation.