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Things to know when relocating business to UAE - Complete Guide

By Shivangi - 16 Aug 2021 Last Updated: 29 Apr 2022
Things to know when relocating business to UAE - Complete Guide

Table of Contents 

  1. 1. 5 Great Perks that will make you want to choose Dubai as your next business destination
  2. 2. 7 Reasons why you should start business in UAE
  3. 3. Conclusion

For a long time, the UAE has been one of the most attractive places for expats and entrepreneurs ? and thanks to numerous recent government measures, that reputation is only rising.

One of the most common decisions made by entrepreneurs and investors is to form a company in Dubai.

Dubai, the country's financial capital and, by many accounts, the Middle East, is at the heart of this long-term business and economic transformation. With its pro-business legislation, the Emirate's visionary administration invites foreign investment. In reality, company formation in Dubai is regarded for being simple and hassle free.

5 Great Perks that will make you want to choose Dubai as your next business destination

relocating business to UAE

Regulations are made to help businesses succeed.

Government plays a critical role in any business's success and long-term viability. Local governments in the UAE have enacted business-friendly rules and regulations. Expats wishing to incorporate in Dubai, for example, can do it in less than a month, in some circumstances as little as two weeks.

Even if you're aware with the types of ownership structures and rules for incorporation, forming a company in Dubai can take a long time. As a result, hiring a representative for speedy Company Formation and easy immigration is always a good option.

Access to a Large Pool of Talent

It's no surprise that the UAE boasts one of the world's greatest talent pools, which makes forming a company in Dubai a smart move, particularly if you want to start local operations. Professionals from all over the world, both skilled and unskilled, rush to Dubai in search of work.

It's safe to assume that you'll discover excellent labour and individuals that are not just educated and experienced, but also eager to learn more in order to grow and progress in their employment. Furthermore, there is an increasing number of highly qualified professionals who have graduated from universities in the UAE.

Stable Economy & Visionary Government

The UAE economy is both varied and self-sufficient; practically all major worldwide businesses are thriving here, and there is no reason why you should pass up the chance to join them. Much of this can be attributed to the UAE government's promises of economic prosperity and livelihood, particularly in Dubai.

Many business ideas are blooming in the region, thanks to the region's expanding population and local demand. Specialized zones and industrial sectors are strictly regulated to guarantee compliance with industry best practises. This is why the UAE is known for setting quality standards in a variety of areas, including banking, FMCG, and retail.

Profitable Investment Possibilities

And we haven't even gotten to the finest part yet. The government of Dubai, and the UAE in general, provides international investors with a variety of support services as well as access to Investment possibilities. Yes, the government has set up programmes to help foreign investors locate opportunities in a variety of areas, including real estate, trade, commodities, banking, and so on.

For example, one of the upcoming chances for firms and investors to participate is Expo 2020 Dubai. It is the first of its kind in the Middle East and is expected to attract over 20 million people, providing you with the ideal chance and time frame to incorporate in Dubai.

Freezone Benefits

You can benefit from total tax exemptions on withholding, export, corporate, and personal income when you launch a business in one of the UAE's Freezones. Furthermore, you will be immune from corporate taxes for the next 50 years from the date your firm is created.

One of the most appealing aspects of relocating to a free zone is the ability to keep total foreign ownership even if you are not physically present in the nation. When forming a company in Dubai, you should get professional advice, especially if you are incorporating in a Free Zone. The correct business structure, strategic business consulting, and support from registration to start-up will help you make a reputation for yourself in the industry.

Read More: Things to Consider Before Finalizing the Business Niche

7 Reasons why you should start business in UAE

Here are the seven most significant, in order to make the case for relocating and conducting business in the UAE right now.

1. Fees charged by the government have been frozen.

The UAE has agreed to freeze federal fees for the next three years, a move that residents have applauded. The decision follows the implementation of a 5% VAT earlier this year, which was aimed to boost UAE income following low oil prices. The fee freeze is the ideal counterpoint, ensuring that the UAE maintains its competitiveness despite recent tax changes.

The UAE typically generates 70% of its revenue through fees such as transportation, parking, real estate, and business licences; this move gives investors and residents of the UAE peace of mind that the cost of living and conducting business will not rise. These developments put the UAE in a strong position among international competitors, especially when there is uncertainty in other sectors.

2. Dubai and Abu Dhabi Economic Stimulus Package

Dubai has proposed a broad stimulus package aimed at increasing the emirates' appeal to investors by cutting the cost of doing business. The establishment of a council to represent the interests of international enterprises operating in Dubai, as well as a commitment to award 20% of government contracts to SMEs, are notable inclusions. There are also steps in place to make foreign investment in Real Estate more appealing, such as fine and fee waivers for businesses, new payment alternatives to spread business costs, and legal evaluations.

There is no better moment to relocate to Dubai than now, when the government has demonstrated its absolute commitment to international investment and economic progress.

Measures include the establishment of a council, similar to Dubai's, to attract and promote investment, as well as reforms to licencing that make conducting business easier.

The new economic measures and incentives span ease of doing business, new sector support, SMEs development, tourism stimulation, local economy development, and job creation in order to create a distinctive investment climate that boosts Abu Dhabi's competitiveness.' Business is becoming easier in both emirates, with bureaucracy being reduced and costs being shared or reduced. If you're in business, particularly in the SME sector, now is a great opportunity to make a move.

3. Dubai has put a freeze on school costs.

Many parents will be relieved to learn that a key source of money flowing out ? private school tuition ? will be frozen for the 2018-2019 academic year, thanks to broad economic policies that make doing business simpler.

This plan to freeze tuition would allow more kids to access high-quality education while also providing parents with price clarity. If you have school-aged children, now is an excellent time to consider relocating.

4. 100% foreign ownership with a 10-year visa

For international investors and professionals in the medical, research, scientific, and technical fields, the UAE federal government has announced a new ten-year residence visa. These visas also cover family members, promoting long-term relocation to the UAE, particularly for those working in entrepreneurship or research.

The United Arab Emirates will continue to be a global incubator for extraordinary talent as well as a long-term investment destination for international investors. Our open atmosphere, tolerant attitudes, infrastructure, and flexible legislation are the most effective strategies for attracting international investment and extraordinary people to the UAE.' This ten-year visa coincides with the UAE's decision to allow 100 percent foreign ownership of enterprises in the country, rather than just in trade-restricted free zones as previously. Previously, enterprises outside of free zones needed a local partner with at least 51 percent ownership to be permitted to trade outside of that zone.

The elimination of this prohibition will make founding and running an international firm from the UAE much more appealing, since foreign investors will be allowed to own 100 percent of the company while still trading freely across the Emirates.

5. Changes to UAE visa and employment rules

Previously, private enterprises had to pay a deposit of AED 3,000 when hiring new employees, which may have deterred hiring and hindered the labour market. Since June, the UAE has implemented a new policy requiring private enterprises to pay only AED 60 per employee to cover a variety of employee expenditures and perks such as vacation time and insurance.

From an employer's standpoint, employing in the UAE has simply become more appealing and less expensive. Then there's the personal viewpoint. These improvements make it easier and less expensive to enter, reside, and work in the emirates, with the goal of attracting foreign talent. Jobseekers, for example, can now obtain a free six-month visa and modify their visa status without having to leave and re-enter the UAE. Anyone who has overstayed their visa can now leave willingly and avoid being barred from returning.

6. Attractiveness measures for outstanding students

Recognizing that attracting the best and brightest student brains from across the world is critical to the UAE's future success, the UAE has implemented a number of initiatives this year to solidify the UAE's position as a global education powerhouse. One of the previous stumbling blocks was the difficulty of obtaining a visa, which most students had to renew each year.

In response, the government announced five-year student residence visas and ten-year resident visas for exceptional students. The government then introduced two-year residency visas for top students following graduation, in an effort to encourage them to stay in the UAE and seek job prospects. Moving to the UAE with your children, especially those who are currently in higher education, is an opportunity that will truly open doors.

7. Penalty fines are waived by the Dubai Land Department.

Although land development is a burgeoning industry, the Dubai Land Department (DLD) requires all properties to be registered in order to "streamline private sector activity."

As a result, the DLD imposed a 4 percent late registration penalty on buyers and developers who failed to register units.

To entice all land developers and buyers back into the fold, the government authorised the DLD to waive this penalty. This waiver will be valid until the beginning of August, 60 days after the announcement on June 7th. Following that, the 4% penalty will be added earlier in the process to avoid similar occurrences and keep the sector working smoothly.

For investors who already own land in Dubai, this means they may register it now, despite missing the previous deadline, and avoid paying late penalties, saving them a lot of money. It also implies that future prospective investors will be safe in the knowledge that the sector is well-regulated and transparent.


Relocating to the UAE is a cost-effective, profitable, and simple process.

You might expect the UAE, as a traditionally oil-reliant nation, to be experiencing major economic difficulty as oil prices fall. The UAE government, on the other hand, is proactively converting the region into an international hub for expats and investors from all walks of life, thanks to a wide-ranging and ambitious set of programmes. These programmes affect practically every aspect of UAE life, providing stability, stimulating investment, decreasing bureaucracy, and demonstrating the UAE's credentials as a more cost-effective and profitable relocation destination.

Many people will find it easier to obtain a long-term residence visa now that the new visa rules have been implemented. Alternatively, you can obtain permanent residency in the UAE by investing in real estate, entering a contract of employment, or establishing a company here through the UAE residency-by-investment programme. Given the new 100% foreign ownership laws, the latter will be extremely enticing. Overall, there has never been a better moment to contemplate shifting to the UAE than now ? and it is now easier than ever to do so.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

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