The new developments in the UAE-Israel ties and the potential inflow of investments in the wake of the historic Abraham Accord are the focal point of the business community now. However, China, another powerful nation, has been the country’s largest trading partner for years by making huge investments in the UAE. The Chinese entrepreneurs have been favouring setting up businesses in Dubai, which is a strong sign of the UAE-China ties.
Thousands of companies have set up businesses in Dubai free zones, especially in DIFC and DMCC. To top it all, the first Chinese-curriculum school (Chinese School Dubai) outside China was recently opened in Dubai, which is deemed as a significant display of the long-lasting relationship between the two global economic powers. The China-UAE bilateral trade ties continue without any interruption even amidst the COVID-19 pandemic situation as new Chinese companies continue to set up businesses in Dubai across a wide range of industries including oil, banking, e-commerce, Fintech, etc.
If you are a Chinese national wishing to set up a business outside your home country, Dubai is the perfect destination for you because of the following reasons.
1. Dubai Offers Global Market Access
China is one of the most powerful markets in the world and is within easy reach of most parts of Asia but the UAE is a strong bridge that connects businesses to the rest of the world. The UAE is accessible for one-third of the world’s population within a four-hour flight and within the seven-hour flight for two-thirds of the population. This is one of the shining perks that you could get with the business setup in Dubai as you could connect with your customers in both the East and West swiftly. Dubai boasts of the perfect infrastructure for exports and imports in the form of roads, seaports, and airports.
2. Process of Business Setup in Dubai is Easy
Setting up a business as a foreigner can be a tricky affair in most countries due to intricate legalities and bureaucratic apathy. However, Dubai greets foreign entrepreneurs with a red carpet welcome, which is reflected in its business-friendly policies. Company formation in Dubai mainland offers a wide range of licenses to choose from with which you get the power to trade anywhere in the UAE.
On the other hand, the presence of free zones provides you with a more flexible option of company formation in Dubai with benefits including minimal bureaucratic requirements, 100% ownership, and total repatriation of earnings. The offshore business setup in Dubai is a much more cost-effective option which gives you the option to buy freehold properties.
3. Plenty of Options for Low-cost Company Formation in Dubai
The multiple options for low-cost business setup in Dubai are a major inspiration for the Chinese entrepreneurs to switch their businesses to the emirate. Forming a company in other major global economies is a struggle for entrepreneurs as they have to find adequate capital to start the business. Also, the various tax requirements are a major turn off in other markets.
You can opt for a low-cost business setup in Dubai by registering an offshore company or starting a business in the free zones. The offshore option is the most cost-effective business type for you as the incorporation costs and administrative expenses are low. If you are planning to go the offshore way, dial up the best offshore business setup consultants in Dubai.
4. Dubai’s Appetite for Strong Chinese Investments
Dubai has always been one of the strong investment destinations for Chinese companies. The Chinese investors have made strong investments in Dubai free zones over the years especially in Dubai International Financial Centre (DIFC) and Dubai Multi Commodities Centre (DMCC). Company formation in DIFC has been a preferred form of investment for the Chinese as major Chinese businesses have a presence in the financial free zone. The major names include Agricultural Bank of China, Bank of China Middle East, Industrial and Commercial Bank of China (Middle East) Limited, Royal China Dubai LLC, PetroChina International (Middle East) Limited. In 2020, the DIFC signed an MoU with Jiaozi Fintech Dreamworks, one of China’s first Fintech innovation and entrepreneurship platforms.
Also in the first half of 2020, another prominent free zone DMCC has strengthened its focus on China by forging ties with Chinese trade, industry, and government bodies. In June 2020, DMCC has signed an MoU with In no way, one of China’s most successful global incubators and science, tech, and education ecosystems. You should remember that all of these major investment deals happened amid the uncertainty induced by the COVID-19 pandemic.
5. Strength of the UAE-China Trade Partnership
The UAE and China are strong economic partners with the former playing a big role in major Chinese projects. The UAE is China’s seventh-largest trading partner and China is the former’s largest trading partner. The UAE plays a significant role in China’s projects including the Belt & Road initiative, an intercontinental infrastructure development project that will enhance the connectivity between Asia, Europe, and Africa.
The UAE is China’s most vital trading ally in the Arab World and the former accounts for 28% of the total non-oil trade between China and the region. Also, China is Dubai’s top trading partner with a total volume of trade topping over AED 107 billion. The strong partnership between the two major economies is likely to continue in the coming years, which is a strong reason why Chinese entrepreneurs should continue setting up businesses in Dubai.
6. Exemplary Visa Benefits in Dubai
As a Chinese entrepreneur, it is easy for you to obtain a visa in Dubai for you as well as your employees and dependents. All you need to do is consulting with the best PRO companies in Dubai who will ease the procedures. Also, Dubai has recently introduced a five-year retirement visa for retirees age 55 and above.
By holding a Dubai retirement visa you will be able to enter the UAE multiple times, work even after retirement, and the ability to sponsor your spouse and kids. Dubai offers you the benefits of efficient visas for setting up a business as well as to live and work here in the second inning of your life. You can know further about the visa requirements by speaking to reputed PRO companies in Dubai.
Always Consult With Business Setup Consultants in Dubai
Chinese businesses have been enjoying a strong presence in Dubai for years on the back of the strong trade partnership between the two powerful economies. Unlike other global markets, Dubai offers the Chinese investors wide market access, fewer capital requirements along a minimal taxation regime. The easy setup procedure, multiple visa benefits (including the new five-year retirement visa), the affordable cost structure, etc. make the process of company formation in Dubai an attractive and viable prospect for the Chinese investors.
However, starting a business in Dubai requires the investors to have knowledge about the various laws and regulations for which professional assistance of business setup consultants is often needed. By hiring reputed business setup advisers in Dubai, the entrepreneurs can avoid chasing different government departments for approvals for special business activities. The intricacies of the procedures can be avoided by associating with prominent company formation service providers in Dubai such as Jitendra Business Consultants (JBC). JBC assists the investors with all their company incorporation requirements such as obtaining the license, processing visas, guidance in opening a bank account, etc. JBC makes the process of business setup in Dubai hassle-free on the back of a team of highly qualified business setup specialists well-versed in labour laws and immigration laws.