September, 2020
Setting up a business in the UAE is a dream of many. The UAE connects Europe and Asia and serves as the favored entry point to the African continent, creating a robust economy and growth prospects. The ease of doing business and sheer endless possibilities make it an ideal location for a startup or hub for an expanding business.
There are three major jurisdictions—mainland, offshore, and free zone—to consider when looking at setting up a company in the UAE and its main city and business hub, Dubai. Each jurisdiction has its own features, advantages, and limitations. Free zones are a great option, providing a tax-free business environment and retention of full ownership of the business without the need for a local partner. However, free zones restrict businesses from operating outside of their geographical confines. There are now more than 50 free zones across the UAE.
Dubai welcomes investors, entrepreneurs, SMEs, and multinationals to its latest free zone aboard the iconic Queen Elizabeth II. The former luxury cruise liner is now permanently docked in Dubai’s Mina Rashid and hosts a hotel and business center. The Free Zone is operated by KIKLABB, a government-owned entity, which is authorized to issue general trade, commercial, and professional services licenses, known as “The Dubai Dream Licence,” to registered businesses offering up to five related activity codes under a single license. The focus is on creating a community by organizing regular motivational networking events and workshops, empowering companies to grow their business in Dubai, which suits entrepreneurs and startups particularly well. A Dubai Dream License company is able to sponsor UAE visas for the founder or director and their dependents. The company can be established and a trade license issued without visiting the UAE.
