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Why Dubai is Best Place for Startups in Middle East Country?

Discover the best Middle East cities for your business to begin with by checking out this article. You need to consider many factors before starting a business in Dubai, including the correct type of business to start, the legal aspects, and how to find funding.

Best Middle East cities for your business to begin

Dubai was ranked the best city in the Middle East region and the second-best city globally, after Abu Dhabi, in Mercer’s 2018 ranking of quality of living for expatriates. The town was awarded 97.1 out of 100, making it the highest-ranked city in the region and globally.

When you plan your business in Dubai, there are several specific requirements that you need to fulfill, many of which include obtaining permits and licenses.

It includes getting the proper permits, being registered, finding suitable offices, obtaining capital, and more. A company qualifies as a sole proprietorship, general partnership, or a limited partnership if it has at least one owner or an equal shareholding.

To qualify as an S-Corporation, all partners in a company need to own a majority stake.

In certain circumstances, one partner may need to own a majority as well. For Business Setup in Dubai, you have to file an application for Company License. It allows you to get a business license, register your company, and get ready for expansion. There are many steps to completing this application, the most important of which include filling in the required documentation.

Seven days are allowed after submission of your completed application for the city to process your request.

No extensions are allowed, so you must complete this process quickly. Good to know. If all goes as per plan, a Company License Incorporation in Dubai will give you the legal framework to start a business in the emirates.

The formalities include: As long as you meet all your application for Company License requirements, you can immediately start looking for suitable locations for your new business.

Why Dubai is a popular place for businesses?

Dubai is one of the most popular places for businesses because it has several benefits that other cities worldwide don’t. Dubai has a low tax rate, which means that the government doesn’t take a big chunk out of your profits.

You can often find that your taxes are almost zero. It and the country’s wealth attract a lot of people to go work, as the government has recently cracked down on tax avoidance.

Businesses that start in Dubai often need to establish themselves first. Luckily, many other cities have similar advantages to Doha, including, but not exclusive to, Kuala Lumpur, Manila, Osaka, New York, and San Francisco.

In Dubai, it is most common to see people standing outside their cars at a drive-through, drinking coffee and hanging out before making their purchases at the commission window.

This holiday-like atmosphere appeals to many people because of the lower cost of living than your average Middle Eastern country (about USD 800 is the median for Dubai).

The government provides a lot of incentives for people to start their businesses. The minimum capital requirement to start a company is 500,000 dirhams, roughly equivalent to $720.

This price is a little cheaper than the U.S. capital of $1 Million, while most countries charge between 1 million and 5 million for the same thing. It makes it a beautiful place for new businesses. Private investors are also allowed to offer guidance and plan their businesses at no cost to investors, which is another benefit for potential entrepreneurs.

Although living in Dubai does have some perks a large company can provide, the cost of living is not one of them. Businesses, especially those requiring a lot of money to run, should consider moving to another country or setting up their business remotely.

Benefits of opening a business in Dubai

There are many reasons why Dubai is the best place for starting a business. Many large corporations have already moved their headquarters to Dubai due to its low operating costs, tax-free regime, and business-friendly atmosphere.

To determine the best business programs in each city, we have compared different factors such as cost of living, employment levels, and business sophistication.

During the 2020–2021 business plan period, business registration in Dubai surged by 54%, especially among service sectors. As a result, it became easier to start a small business in Dubai.

The reporting office works with many local lawyers, accounting service providers, and specialists from law firms in the U.S., UK, Canada, and Australia, making the process significantly easier. Many international banks have their head offices in Dubai, including several multinational banks.

Monetary Allowance for Business is a government-run program that provides limited funds to businesses that provide municipal services within a designated area.

The legal profession actively encourages women to enter the workforce, with nearly 50% of professional women belonging to the legal sector.

Dubai is not as big as other cities in the Middle East, but the economy is thriving. It is mainly due to its access to a large pool of qualified labor.

How to open a business in Dubai?

If you’re thinking about moving to Dubai or setting up a business here, there are certain red tape hoops that you have to jump through before you begin. First of all, you’ll need a visa.

When you’re thinking about which type of visa to get, you need to make sure that the ones you get will give you the flexibility to do the kind of work you’re interested in, as well as allow you to settle when things wind down quickly.

The types of work you can do vary and include everything from administrative support such as filing taxes to running a restaurant, bar, or other general-purpose business. The legalities of business in Dubai can also make this city one of the most complicated for new business owners to get set up in.

While each emirate has its laws, Dubai has some peculiar laws and regulations related to funding sources for private companies, and the tax code is very regressive and favors large companies. While working in Dubai, you can expect to suffer through a lot of bureaucracy.

One of the most common types of companies you can do in Dubai is call centers, especially in the employment and business services sectors.

Talking to strangers online is also a popular alternative to using a virtual timer. Just be sure that whoever is interviewing you understands your local dialect and expectations of handling customer complaints or requests in simple English.

In addition, to call centers, many other businesses can also quickly be started from homes, such as restaurants, cafes, or hotels.

Again, understanding the local city proper and understanding local food and beverage culture will be necessary to get some clients working in your establishment.

Different types of businesses that you can start in Dubai

In the UAE, the types of businesses you can start include

  1. Sole Proprietorship: a corporation owned by one person
  2. Partnership: a business owned by two or more people
  3. Limited Liability Company (LLC): a business owned by one or more people and protected against personal liability
  4. Company: an unincorporated association that can license its assets and activities Remember that not all businesses need to be registered with the government to start in the UAE.

Most business licenses in the country come directly from the government. To register your company with the government, you need to fill in a registration form and pay the required fees (two amounts: registration fee and license fee).

There are two steps: The business license allows any citizen to own and operate a legal business. Citizens also need to meet specific requirements to register their U.S. assets with the government.


There are different filing requirements for each type of business to receive government business licenses. Learn everything you need to know before you start your own legal business in Dubai.

However, before you extend your request, you need to make sure the company is paying its taxes. It includes net income (loss) from your operations, taxes on profits, and property taxes. There are also financial reporting requirements to be met.

Applications for companies and sole proprietorships to register can be submitted directly to Dubai if you would like to start a business.

However, if your company is already registered, you will need to apply to the Dubai government via the Dubai Business Registration Department. It includes all the requirements to apply for a license.

Sultan Zubair
Sultan Zubair
Mr. Mohammed sultan Zubair joined MSZ Corporate services provider as managing Director, bringing nearly 13 years of industry leadership experience. He began his corporate services and business consulting in the year 2008 working up his way in the organization business setup in Dubai consultant to an entrepreneur and Director of the company.

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