We have already discussed in a previous article how to connect with other entrepreneurs in Dubai. Find it here: article. However, being an entrepreneur means you probably have a company. If you do not have one yet, you are reading the right article. In fact, let’s talk about which is the cheapest way to open a company in Dubai!

Let’s start dividing 2 main concepts about having a company in Dubai. You can be the owner of a mainland company or the owner of a freezone company.

For as much as we could talk about the difference, let’s just summarize it. Leaving the discussion for another article.

Mainland company is a company founded in UAE and without a specific geographic limitation. The company can conduct business in all UAE and it is subject to UAE laws. The company has to be owned for its 51% by an Emirati citizen. Just to clarify, a citizen is a person who owns the passport of UAE. Having a VISA means you are a resident and not a citizen, therefore it is not enough.

Why to open a mainland company?

Having a mainland company allows you to conduct business in all UAE areas (except for the freezones). It is useful if you have a physical business such as a restaurant or shop. It is also useful if you want to open an office in an area of the city which is not in a freezone. For Example Dubai Marina or Downtown.

On the other hand, Freezones company are companies you can found in a specific area. There are multiple freezones spread around UAE. Every FreeZone has its main activity of business. For example you have Media City freezone focused on Media. Dubai World Central freezone is focused on shipping. There is internet city focused on internet. You got the idea.

Why to open a Freezone company?

Freezones are under UAE laws but they also benefit from specific status and specific laws. Therefore it might be easier to deal with a problem in a free zone. Moreover, freezones companies can be owned 100% by a foreign person. However, having a freezone company means that you can run your business only within the physical borders of the freezone. Which, if you are a digital company is okay to do, but if you need an office in the city center might be a problem.

Moreover, mainland companies are way more expensive both to be founded and to maintain them every year. Bureaucracy is also more complex and you need to find the Emirati partner.

The cheapest way to open a company in Dubai is to open a Freezone company.

There are multiple freezones and different requirements to be answered to in order to open one. However, they are really cheap if you can access to the right promo.

Opening a Freezones company starts from 7.500aed.

You don’t need to pay more than that a part the case in which you need a complex setup or a licence to run a specific business. We have partnered with SHAMS media city directly. Therefore you do not need to pay the commission to strange consultans or companies that only want to monetize you.

You can get the special price clicking here and leaving your details: APPLY HERE. A member of Shams will call you in 24 hours directly.

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Dubai is a fantastic oasis in the desert. The city where everything is possible. Dubai is the city of the new riches and where all the entrepreneurs are moving to. By why is this? And is it true that you pay no tax in Dubai? If not, how much tax you pay in Dubai?

Let’s start analysing the city ecosystem in terms of business and fiscal procedures. The city is build around the free trade zone. This zones are spread around the city and offer big incentives for everyone who wants to create or establish a business in Dubai.

In fact, every different free zone has a specific scope and targets different industries.

There is the Media city free zone, targeting all businesses in the media space. The Dubai aviation zone, targeting all te companies in the aviation space. There is Internet city free zone, there is financial free zone (DIFC), there is the silicon oasis free zone for startups and so on.

There is really a huge list of different zone, everyone focusing on a specific niche. If you need to open a new company and you have questions about which free zone is the best for you we got you covered. You can apply at this link and we get you in contact with an expert to assist you with a free consultation: apply here.

So why opening a company in a free zone?

There are many incentives to do so and, without analysing all of them, we can focus on the main one. You can own the company 100%. In fact, if you want to open a company outside the free-zone, in the mainland, you need to have an Emirati citizen partner. The partner needs to have at least 51% of the company. Therefore, you don’t have the majority of the company.

If this is the main incentive, on the other hand, having the company in a free zone means that you can conduct physical business only within the free zone. Therefore, if you want to open a shop or moving goods, you can but only within the borders of the free zone. Of course, if you have a digital activity or a service, you can conduct it wherever you want anyways. However, even if you have a service business, your physical office has to be in the free zone.

You cannot have an office in mainland if you have a free zone company.

Having said this, let’s discuss in deep if you need to pay tax. Let’s start saying we need to differentiate between:

• Personal Tax
• Company Tax
• VAT

The personal tax is the tax you need to pay on your income. It is the tax on you salary or on your dividends. It is the tax on the capital gains. This tax is easy in Dubai. If you are a resident (not a citizen, meaning you hold a residence VISA) THERE IS NO PERSONAL TAX! So you don’t have to declare anything and you pay 0 on your salary, you pay 0 on dividends. and Moreover:

There is no capital gains tax in Dubai.

Regarding the Company tax, this is the tax companies have to pay on their profit. It used to be zero as well. However, starting from 2023, companies have to pay 9% tax on the profits (revenue minus expenses) of all businesses which generate over 375,000 AED (about USD $100,000). If you do not generate over 375.000aed in Profits, your company does NOT need to pay tax.

Last but not least, the Value Added Tax, or VAT, broadly based consumption tax assessed on the value added to goods and services. VAT in Dubai is 5%. Whatever you buy as a personal, either a product or a service, has the total cost plus 5% of VAT on top to be paid. As a company you are required to add tax to your services or products if they are sold within the country. If you are providing a service for a client abroad, you do NOT need to add VAT.

As a company you need to register at the Federal Tax Authority and declare your VAT revenues and cost every quarter.

We know it might be confused, but it is actually more simple than a lot of other countries. however, we offer you a FREE consultation, you just need to apply clicking here.

If you want to expand your new business we suggest you this article: how to network with interesting people in dubai!

The post How much tax you pay in Dubai? appeared first on Entrepreneurs in Dubai .

You are new in Dubai and you want to get the most from this city. For sure, one of the reasons you moved here is the ability to know people and to make business here. However, where can you meet people to make business in Dubai?

We all know that business is done by knowing people. The ability to network is one of the main skill of a successful entrepreneur. Knowing people give you the ability not only to expand you business opportunities, but also to understand different mindsets and ecosystems.

Especially in Dubai, a lot of different people get together and share their insides and experience. The city offers a vibrant ecosystem to expand your horizons and to maximise your business.

You can meet with people and entrepreneurs from every side of the world in Dubai.

In fact, Dubai offers the perfect basis to conduct a successful business. It is built around the idea of facilitating business. Bureaucracy is as easy as possible and the government is really betting on the digital transformation to make things as easy as possible. We all know that dealing with bureaucracy is extremely annoying and complex.

Moreover, in terms of conducting a successful business, Dubai, through its freezones and tax system, offers one of the most appealing condition to setup a business in the emirates.

In fact, you can create a company in a few clicks in Dubai. You can get a VISA for living in the city. You can run your business with zero or a really low taxation.

Moreover, one if the best opportunity the city offers, is the ability to connect really interesting people. Especially because, the people who come to Dubai are usually extremely valuable. (Check our article in when to start looking for a place in dubai here).Thinking about the city, there is a cost to move here. Therefore, who comes to Dubai are either successful entrepreneurs or managers relocated here by their company. If the second is the case, the manager to be relocates is probably really good and a valuable asset for the company to invest on.

The Dubai ecosystem is therefore populated by really interesting people. Everywhere you go you can meet someone that might change you day!

We have not answered our question yet. Being new in the city and knowing zero, where can you go to meet people to make business in dubai?

You are ideally looking for someone that has done already what you did. Someone probably from your country and someone who has been in your shoes in the past and can guide you know.

A lot of countries offer, through their consulates or through their chamber of commerce an opportunity to meet. There are as well Business Councils created exactly with this scope.

You can search online for the business council of your home country. There are so many established in the city. For example there is the Italian, the Swiss, the SouthAfrian, the Pakistani, the Saudi business councils.

The scope of a business council is to connect people from the same country and help them in facilitating their business in Dubai.

Moreover, the business councils are often organising events and occasions to meet and discuss different topics. A really nice occasion for you to meet people to make business in dubai.
Contact the business council you would like to join and ask them to be invited to the next event!

Remember to bring business cards with you at those events and to introduce yourself to as many people as you can!

The post meet people to make business in dubai? appeared first on Entrepreneurs in Dubai .

I have lived in Dubai for more than 7 years at this point. I have seen the city changing and growing fast. More and more people are coming to live in Dubai. At the same time, a lot of entrepreneurs are deciding to move in Dubai and to start their businesses here. This is the reason for why this blog, a guide for all of them.

Data are clear, every day hundreds of new entrepreneurs are coming to Dubai. With them, their questions and problems are coming as well.

The more people are coming, the more I receive messages and questions about helping in setup in Dubai.

This is the reason for why this blog. I want to create a precise guide to offer help and suggestions to you. Do not make the mistakes I made once I moved here.

When you decide to move to a new city, most of the time you do not know where to start. Therefore, what you do is asking the people you know already there for help.

I really believe in the power of helping others. At the same time, I feel there is not a precise point of contact for the entrepreneurs in Dubai to understand better what they need to make business and to live a peaceful life.

It is true that other solutions are already out there. For example, consulates or business councils are really helping entrepreneurs in dubai to connect and to do network. This blog wants to be different. This is the fast guide you can consultate in a couple of clicks to solve all the small problems you might face on a daily base.

For example, where to buy good water, which are the first steps to rent an apartment or just how to get discounts in nice restaurants.

Yes, we are also going to offer you business suggestions and sharing our experience.

Our Mission is: SOLVING all your daily life annoying questions and problems as an entrepreneur in Dubai.
So you can focus on what matters the most: your business!

I created this blog with in different HACKS in mind.
The HACKS are the answers to all your daily questions you have, for which I have already found an answer during my life here in Dubai.

Different Hacks are related to all the questions I have asked myself through the years. Including, all the questions the new comers entrepreneurs in dubai have asked me in the past years.

I am summarising the most common Hacks in the following categories:

BUSINESS HACKS: This category is going to include all the suggestions i have for you to setup your business properly in Dubai. This section includes all the answers to the questions related to setup a new business, accounting, taxation, VAT declaration, and everything you need to know.

CITY HACKS: This category will include all the answers related to how to move around the city like a local. Understanding the different areas of the city, getting to know where to go or what to do.

HOUSE HACKS: Finding a place where to live is the first big problem when you move to dubai. Probably, just as big as setting up a business. This category helps you in understanding what you need to know, what you to do and how you can avoid being scammed.

LIFE HACKS: This section is going to help you in addressing all your concerns about how to live a healthy life. For example where you can buy what, which recommendations you need in this extreme weather and how to maintain a good work-life-dubai balance

However, you can always just read the latest from the Blog Section, where all the articles are going to show.

Do not forget to subscribe to the newsletter to receive all the answers in your email.

The post Why this Blog – Entrepreneurs in Dubai appeared first on Entrepreneurs in Dubai .