If you are aiming for something big but wish to start small, then look no farther in Dubai for company formation. All the big companies that we celebrate today with high regard started as small and the business setup in Dubai is the perfect opportunity for SME entrepreneurs to give wings to their dreams. Have you ever wondered what makes Dubai the hotbed of opportunities for SMEs and startups? A more valid answer to this question would be that the Dubai government is aligned for the growth of small businesses. The easy and hassle-free business setup procedure, excellent banking system, absence of corporate tax, safe business and family environment, the presence of a plethora of free zones that come with a lot of benefits, air-road-sea connectivity with the world make the business setup in Dubai perfectly aligned for the SME entrepreneurs.
The Scope of SME Company Formation in Dubai
Nearly 99% of the establishments in Dubai come under the classification of SMEs and they account for 51% of the workforce and contribute around 46% of the GDP of the emirates. SMEs and startups have been the main driving force of innovation, entrepreneurship, and job creation in Dubai for years.
Facts and figures show the SMEs are poised for upward trajectory growth despite the short-term challenges precipitated by the COVID-19 pandemic. In 2012, nearly 17,000 new SME licenses were issued in Dubai and this figure increased to 23,000 by 2015. And the reports and projections suggest the number is bound for further increase by 2021 as the government has accelerated its efforts to support the SME business setup in Dubai.
Factors Supporting the SME Company Formation in Dubai
1. Opportunity for Low-Cost Business Setup in Dubai
Compared to other big economies in the world, low-cost company formation in Dubai is a welcoming reality for small businesses and startups. SMEs can avail of the benefit of zero capital requirements and therefore the business setup in Dubai becomes highly affordable for the entrepreneurs.
Also, you don’t need to pay any income tax or corporate tax while setting up a business in Dubai. However, the corporate tax is mandatory if your company is in the oil or banking sector. Reputed business setup consultants in Dubai, UAE provide you with a robust advisory in setting up a business at a low cost.
2. Presence of Free Zones for Easy Company Formation in Dubai
There are over forty free zones in the UAE and more than thirty of them are in Dubai itself. Dubai has pioneered the concept of free zones much earlier than other emirates when it launched the Jebel Ali Free Zone (JAFZA) in 1985. The free zones have been developed to attract maximum foreign investment and also to diversify the economy.
The free zones are the most cost-efficient form of business setup in Dubai available for small businesses and startups. Free zones offer 100% ownership, total repatriation of profits, and easier procedures of company incorporation in Dubai for SMEs. The Dtec free zone under Dubai Silicon Oasis has special incubation programmes for tech startups, while the DIFC free zone offers the innovation license for startups to incorporate and grow. Consult the best business setup consultants in Dubai for setting up a business in UAE free zones.
3. Strong Support from Dubai SME
Dubai SME, an agency of the Department of Economic Development (DED), is one of the key players that support the growth of SMEs in Dubai. In 2019, the agency provided AED 170 million worth of incentives and services to 3,871 entrepreneurs.
Dubai SME financed 75 small businesses in 2019 through its financial arm called Mohammed Bin Rashid Fund (MBRF). Overall, the MBRF provided financing products worth over AED 80 million to SME projects to date.
4. Ample Opportunities in Emerging Business Sectors
For the new entrepreneurs who are planning to set up a business in Dubai, there are plenty of new opportunities in the emerging industries. The digital transformation and the change in consumer behaviour caused by the COVID-19 pandemic have led to the emergence and high growth of certain sunrise industries in Dubai such as E-commerce, Fintech, IT, and the manufacturing and distribution of disinfectants, etc.
Due to the lockdowns and social distancing practices, such industries have posted huge growth and their long-term outlook is also promising. Entrepreneurs should focus on such promising sectors for company formation in Dubai amid the pandemic situation. Reputed business setup consultants in Dubai assist you in setting up a new company in any of the sunrise sectors in the emirate.
Related: 10 Mistakes Foreign Entrepreneurs Need to Avoid While Setting up a Business in Dubai Mainland
How Jitendra Business Consultants Help SMEs?
Company formation in Dubai is a strategic decision as the entrepreneurs will be tasked with choosing between the mainland and free zones. The mainland company formation in Dubai provides the opportunity to trade anywhere in the UAE while the free zones do not allow the companies to conduct business within the UAE. The free zones allow 100% ownership while the mainland business setup in Dubai requires a local sponsor (UAE national) who holds at least 51% shares in the company. Also, sound knowledge of laws and regulations is mandatory to set up a company and this is where reputed business setup consultants in Dubai such as Jitendra Business Consultants (JBC) come to your aid.
JBC has years of experience in incorporating thousands of companies in Dubai and the UAE. We have a team of highly qualified business setup consultants who are well-versed in labour laws and immigration laws. Our consultants assist you in deciding where to set up your company and deal with the authorities in getting the trade license in Dubai. We offer services such as company registration, visa processing, sponsoring of dependents, drafting of Memorandum of Association, etc. With JBC’s professional assistance you can incorporate a company in Dubai in peace of mind.