Jens Kattermann: building a business in Dubai

Several factors make Dubai an ideal place for a business person. Dubai is blessed with a booming economy and endless opportunities for business. Its currency is secure and freely convertible. Import duties are as low as five percent for almost all goods, and items imported for use in the free zones, food stuffs, medicines, and agricultural products have no import duties. There is no corporate tax and personal tax, and the financial risk of starting a business is minimal. In addition to this, a lot of effort is being made to reduce the paperwork involved in establishing a business in Dubai.

It is very important to keep the following steps in mind if you want to build a business in Dubai:

1. Planning and research is a must. Conduct an extensive research on the region and the business sector within which you wish to operate. This includes market conditions, the competition you will have to face, and the results of your forecast. Prepare a viable business plan on the basis of your research. If your business plan is credible, you might attract government support.

2. Arrange the financial resources for your business in your own home country. Applying locally for financial help might be risky.

3. According to the law, you need to have a local partner, who does not have to participate financially in your business. However, the local partner will hold the majority interest in your business. This legal requirement is currently under review in some states in order to encourage foreign investment.

4. After you have registered your business, you have to show the Ministry of Commerce a substantial sum of money; this is considered to be a guarantee against liabilities. The sum varies according to the state, and can be withdrawn shortly afterwards.

Starting a business in Dubai is not for the faint-hearted. It requires a lot of local knowledge and expert legal help. This need not discourage potential entrepreneurs. Several people have developed highly successful and profitable businesses in Dubai.

Moreover, the government encourages entrepreneurs, especially in the export and manufacturing industries. A business in a free zone is exempt from import and export duties, commercial taxes, building and property license fees, land tax and restrictions on the transfer of invested capital. More about Dubai offshore company formation.

Arabic is the official language in Dubai. Your business must have an Arabic speaking employee, at least on a temporary basis to deal with government institutions on issues related to your business. This is absolutely necessary.

Arab businessmen value courtesy, good manners, and honesty. Their word is their bond, and they expect you to act according to your word, even though there is no written agreement. The Arab world loves to mingle business and hospitality. Business meetings are usually conducted over a lunch or a dinner in a reputed hotel.

Dubai, with its strategic and accessible location, excellent infrastructure, secure and pleasant working environment, and a population of cosmopolitan well-educated people adept at conducting business on a global level, is beyond doubt an entrepreneur’s paradise..