The term “micro business” heard everywhere these days, refer to a small business or enterprise, comprising of five or less employees and have turnover less than $250,000. This approach is suitable for solo entrepreneurs, mostly who start their e-commerce having small budget, so if they can manage to work alone, this line of track is best for them and cost minimal to the new start.
Favorable factors to start Micro business in Dubai:
Starting a micro business in Dubai is highly beneficial as this region provides extreme opportunities to the investors. The key factors to boost the micro business are listed here:
The state of the art infrastructures and government policy supports the growth of small scale businesses in Dubai. The government of Dubai has vision to focus heavily on growing new businesses and welcome every investor through their seminars and urge them to start working in their country. Tax-free environment is ideal for new and emerging businesses.
Foreign Business Support:
Dubai not only Support their citizen in starting new stream of their life but also provide opportunity to the foreign investors. As a matter of fact, the foreign investors are encouraged to take initiative and expend their business here because the presence of foreign business is a remarkable boost to the economy of Dubai.
Free Trade Zones:
There are many Free Zones in the UAE which have been established for purpose of promoting international business activities in the region supported by the world class infrastructure of the UAE. Setting up your business in free trade zone in Dubai, you will be granted exemptions such as:
- import and export duties
- commercial & land tax
- building & property license fee
- transfer of capital invested in the free trade zone.
Another reason why UAE – Dubai, in particular is a fruitful land for businesses is that taxation is negligible and mostly non-existent. Only three sectors are significantly considered in taxation, these are:
- tobacco processing
International Business Market:
In the UAE, investors are granted incentives for setting up new business and have been given simplified procedures by the government. People come from far off place to shop in Dubai because they tend to get cheaper goods there due to high competition between the international traders. Business setup in the UAE is very easy and cost effective UAE encourages foreign investors to invest in the oil-rich country by providing progressive, forward-thinking policies by the government.
Most Suitable free zones for business in Dubai
Government of Dubai has set up free zones specifically to encourage investment. Companies set up in free zones have a distinct legal structure and are treated as offshore companies for legal purposes.
Most popular and preferred free-zones are in UAE. United Arab Emirates has 7 emirates and each emirate has number of free-zones for investor to select and start their business such as
- Dubai Airport Free Zone
- Sharjah Airport Free Zone Authority
- Fujairah Free Zone Authority
- RAS Al-Khaimah (RAK) Free Trade Zone
- Dubai Media City Free Zone
- Ajman Free Zone
- Hamriyah Free Zone
- Jabel Ali Free Zone
- DMCC Free Zone
- Dubai South Free Zone
You can get details about each free zone of Emirate by reading “Incorporation of a Free Zone Company in UAE” at our KWSME website for your knowledge.
Dubai Free Zone Benefits for Starting Micro Business:
Dubai Free Zone Business gives you opportunity to fully own your business, you don’t have to pay taxes, and easy lease terms for office setup can be obtained easily. For small and medium scale businesses, this is a perfect setup. All free zones provide almost same benefits to the new and small business setups, here is the combined benefits listed to make it covenant for entrepreneurs to have a glimpse of free zone opportunities for their investors. The benefits that Dubai Free Zone offers to new business setups are:
- 100% foreign ownership
- No personal or corporate tax
- 100% capital and profit return
- No import export liability
- Terms and Conditions for commercial lease are flexible
- Accessibility of broad range of business activities
- Easy setup procedure (minimum documentation requirements) for new business
- No currency restrictions
- State of the art infrastructure and facilities
- Fewer restrictions on foreign investors in terms of visas and dependent’s sponsorship
Small businesses development is the key to Dubai’s successful future, although licensing and registration is complex procedure there. In order to ease these methods, we KWSME professionals are here to assist you how to establish a company in Dubai South Free Zone, get in touch with us at KWSME for professional assistance. We provide company formations services for new business in Dubai and UAE. Contact our representatives for further guidance.