Written By Antima – 08^th August’22

Myths vs Facts About Business Setup in Dubai

Dubai continues to provide a profitable and productive environment for business people and entrepreneurs from all over the world. The city provides limitless company setup in Dubai prospects, making it the UAE‘s commercial hub. Businesses profit from Dubai’s strategic geo-location since it is well-connected to the rest of the world.

However, for many people, to start a business setup in Dubai might be difficult. Even though the procedures are not overly complicated, an ex-pat may find them confusing. People naturally seek out the opinions and experiences of others, which leads to misunderstandings and myths. We’ve decided to dispel the most frequent fallacies about starting a business in Dubai, based on our 14+ years of expertise in the UAE.

Myth 1 : It’s Expensive to Start a Business Setup in Dubai.

Capital investment is required to start a business setup in Dubai. Because of its hassle-free business incorporation, the UAE is recognized as a business paradise. Launching a business in Dubai is significantly more pleasant and cost-effective than starting one in Europe, for example, due to the economy’s diversification.

Here are some figures for three well-known niches:

• IT is a booming industry. In order to start an IT company in UAE in one of the UAE Free Zones, you’ll require between USD 7,700 and USD 14,000 on average.
• Beauty salon. Licensing fees are expected to be around USD 8,700, with annual rent in Dubai’s best district starting at USD 17,700.
• A trading firm. The cost of starting a trading corporation ranges from USD 7,700 to USD 14,200.

Aside from that, there are other benefits to starting a business in Dubai, such as no income tax, a low VAT rate of 5%, and a lack of corruption and bureaucracy.

Myth 2 : Establishing a business takes too long and is time-consuming.

It might be difficult and time-consuming if you are unfamiliar with business regulations. However, with the support of advisors like Projectfrpjsc, one of the best business Setup Consultant in Dubai who know everything there is to know about forming a business in Dubai. There are only three stages to forming a business setup in Dubai. 

• Get your Dubai Business license
• Obtain your UAE Residence license 
• Setup your corporate bank account

You may legally conduct your business in Dubai in 1-4 weeks if you have the necessary documentation in place.

Myth #3: Doing Business Offshore Is Illegal

 Offshore Company Formation in UAE  is completely legal, and it is one of the quickest and safest ways to own a company in Dubai. Many offshore enterprises already exist in Dubai’s central municipalities, including those in a business center in Business Bay, JLT, and Media City. With the predicted rise of businesses in the UAE in the next years, you’ll need to know what information to believe and what not to believe.

Myth #4: A local sponsor is required for Company Setup.

Many foreigners and businesspeople believe that starting a company setup in Dubai necessitates the hiring of a local sponsor (a UAE native). Unfortunately, this is not entirely accurate.

UAE now allows ex-pats to set up businesses without any sponsor. You can have 100% Ownership in Dubai Mainland of your company as an expat. Furthermore, you benefit from 100 percent capital and profit repatriation, no income or personal tax, and much more. 

Myth #5: The city is unwelcoming to female entrepreneurs.

The United Arab Emirates is one of the most gender-equal countries in the Middle East. Dubai is a popular destination for female entrepreneurs because it is one of the most open cities in the Middle East. Emirati women led the list of the Middle East’s top 100 businesswomen. The city is also actively working to establish a business-friendly climate for all genders.

The majority of the myths about Dubai are developed and believed by people who have never visited the city or are unaware of the reality. However, the truth is that starting a business in Dubai is rather simple.

We at Projectfrpjsc can assist you in starting a business in Dubai. We handle everything from business formation to office space. For additional information, please contact us immediately.

Top 5 Challenges of Running Startup in Dubai and Overcoming Them

The journey from idea to reality is long and winding. Having a fantastic idea is merely the first step toward making running startup in Dubai a reality. There are, however, a slew of other measures you’ll need to take. You’ll have to overcome a few challenges, modify your strategy, and put in a lot of effort.

In today’s globe, there are around 150 million startups, with 50 million new ones debuting each year. Every day, on average, 137,000 new Business Setup in Dubai are founded. By any measure, these are enormous figures. But, given the ferocious waves of change that have radically changed the nature of running startup in Dubai, how many are likely to survive?

Challenges faced by startup

Here are some of the most significant problems that small business startups face:

1. Resources are limited.

To start a business setup in Dubai a few decades ago, you needed either a large sum of money or the ability to raise capital. The majority of self-funded entrepreneurs would be unable to get started. Every day, almost 137,000 businesses are discovered around the world. The Cost of Starting a Business in Dubai is now 1000 percent less than it was 20 years ago. The obstacles to beginning a firm are at an all-time low, thanks to open source technology and low-cost cloud-based tools.

Overall, you should be aware that capital limits can affect both large and small businesses. It’s not just for self-funded or early-stage businesses. You’ve got what it takes to get the money you need to keep moving forward in running startup in Dubai. Focus on how you can be customer-funded in addition to the reasons stated above. Any entrepreneur’s finest investor is his or her customer.

2. Cutthroat Competition

Today’s competition is tough. Between the giants, there is always competition. One of the most significant obstacles to a startup’s existence is competition. And if you’re starting an online firm, the competition is even tougher.

To survive in this competitive business environment, which includes both traditional and internet enterprises, entrepreneurs must play aggressively and punch above their weight in order to obtain much-needed exposure amid the clusters of constantly challenged and increasing businesses.

3. Marketing ineffectiveness

Perhaps the most important reason why so many businesses fail is that they don’t know how to deal with their marketing issues. You might choose to outsource your marketing to a more competent team to avoid this problem. Furthermore, you cannot afford to concentrate solely on online marketing, as many firms do nowadays. Consider promotional items as well as traditional advertising (newspapers, radio, and television).

4. A team that isn’t up to the task

When it comes to making the squad, you must keep in mind that your résumé and performance are not everything. On paper, a person may appear to be admirable; nevertheless, if the person in issue is a backstabber, a rival, or a self-proclaimed celebrity, they are likely to cause more trouble than they are worth.

5. Gaining Customer Trust

The customer is king. That’s correct. One of the most difficult issues that businesses in general – and running startup in Dubai in particular – confront today is gaining a customer’s trust. Startups may scale and move toward greatness if they have a happy and devoted consumer base. Startups must strive aggressively to apply a customer-centric working philosophy to acquire consumers’ trust and loyalty, allowing them to thrive in their pursuit of the heights of sustainable growth and progress they desire in this tech-savvy and tough business world.

This leads us to the conclusion of this article. It is a fact that there is no one-stop solution to the issues that entrepreneurs face in this day and age. You don’t have a magic wand to help you address the so-called problems overnight, either.

Startups must be resilient and focused on maintaining their integrity against all obstacles in order to face and solve the so-called challenges of a violent business world.

Projectfrpjsc can assist you with establishing a business in the United Arab Emirates. We handle everything from business setup in Dubai to office space. For additional information, please contact us immediately.

Six Tips for Self-employed in UAE

Whether you’re freelancing, working as a contractor, or operating your own business, being self-employed in UAE opens up a world of possibilities, including lucrative business agreements and funding to help you get started.

It does, however, come with some conditions that should not be disregarded. Here are some helpful hints for self-employed people in the United Arab Emirates who want to make the most of their opportunities.

1. Understanding your business options

The UAE permits entrepreneurs to operate their business in a variety of methods, including:

• Sole Proprietorship
• Civil Company
• Limited Liability Company (LLC)
• Foreign Company Branch
• Free Zone Company
• Freelancers

It’s simplest to start a business as a freelancer in the UAE, but you can also set up a sole proprietorship or a civil corporation, both of these enable 100 percent foreign ownership.

A sole proprietorship can only have one shareholder, but a civil corporation can have multiple shareholders.

It is advised that all self-employed people have professional indemnity insurance in place to safeguard them, regardless of their business structure.

2. Make sure you get the right licence

Licenses are divided into two types: mainland licenses, which allow you to trade freely both inside and outside the country. Free zone licenses, which provide attractive tax incentives but only allow you to trade within your free zone jurisdiction.

If you’re traveling to the UAE from another country, you’ll need a visa sponsored by the jurisdiction where you’ll be working, as well as a medical examination and health insurance.

3. Consider free zones for freelancing 

If you want to work as a freelancer, there are a few free zones where you may apply for freelancing permission and a visa. Dubai Internet City, Dubai Media City, Dubai Knowledge Park, Fujairah Creative City Free Zone, Ajman Free Zone, and Ras Al Khaimah Economic Free Zone are some of these.

This is done by sending an application form to the appropriate regulatory authorities, together with additional papers such as a copy of your passport, a passport-size photo, a curriculum vitae (CV), and, if necessary, a No Objection Certificate from your sponsor.

4. Have a base

You can rent an office in business oriented regions or you may work from someone else’s office. If you’re a freelancer, you might want to consider renting a co-working space, which you typically pay for every month.

5. Get an understanding of how the tax system works

The free zones in the UAE provide a variety of tax benefits, including 0% business and personal tax. Import and export taxes, as well as currency limitations, do not apply to you. Furthermore, you can repatriate 100% of your gains.

However, since the introduction of VAT in the UAE, if you make more than AED 375,000, you must register . VAT registration is not required if your annual income is between AED 187,500 and AED 375,000. To verify this, make sure you maintain all receipts and documents up to date.

6. Understanding and connections

Oil and gas, industrial, IT, construction, and finance are some of the UAE’s most important industries. However, with many global firms based in the UAE, there are several chances for  the individuals interested in working in tourism, media, design, and fintech.

If you’re new to the UAE, it’s a good idea to learn as much as you can about the business culture. Personal relationships are crucial when visiting trade fairs or reaching out to new clients.

Being self-employed in the UAE has opened doors to new markets and clients, as well as new sources of funding that helps you grow your business.

How Radiant Biz helps you

In matters like business setup, people tend to get confused and get in chaos due to several rules and requirements. This is the time when people tend to look for an expert. A lot of chaos can be avoided if guidance is taken from the very beginning. Every venture may have unique requirements like location, customer convenience, logistical feasibility and banking services.

We at Radiant Biz strive to understand these unique precepts and provide expert and reliable consultation to our clients with updated laws and governing regulations, awareness of their rights, and cost-effective business solutions tailor-made to their business needs and budget.

Conclusion

With a few tips, it gets easier for self-employed people in UAE to flourish along with their businesses. Projectfrpjsc is the one-stop solution for all the business setup queries and issues and can help your business flourish. 

How to start a facility management company in Dubai?

Facility management company does the tasks of managing various facilities. Manufacturing and factory complexes, office buildings, shopping centers, and parks, sports facilities, hospitals, hotels, stadiums, and other facilities whether private or public are all managed by facility management companies. 

What are the different types of facility management companies

1. Cleaning
2. Hardware Inspection and maintenance
3. Environment, health, and safety
4. Space management and migration
5. Transportation
6. Security Services
7. Fire Safety
8. Operational
9. Business Continuity

Responsibilities of a facility management company

The duties of a facility management company varies depending on the discipline and organization where you work, but they will all aim to improve productivity and minimize waste while keeping people alive and healthy. Other objectives include: 

1. completing all of the duties regularly
2. Keeping up with all changes in the industry’s regulations
3. Keeping track of inefficiencies and problems and reporting on them
4. Identifying service areas that can be improved
5. Calculating the costs of the products and equipment you’ll need to complete your tasks
6. Responding to emergencies in a peaceful and timely manner
7. Delegating and coordinating FM efforts at the same time

Facility management license cost

The overall costs of starting a facilities management business in Dubai will vary based upon where you choose to company registration in UAE, how many visas you need, and other factors like whether it is a free zone company, offshore company, or mainland company.

Why set up in Dubai?

Dubai has a vast market. This opens better opportunities for Facility management companies. With the right skills and management techniques, it is easy to open a facilities management company in Dubai.

How to set up a facilities management company in Dubai

1. Deciding the name- Deciding the name of the company is an important task to do. The name should not be selected by any other company and it should not translate to something offensive in any language.

2. Deciding the area- You need to decide whether the company has to be a free zone, offshore, or mainland company as all of them have different costs of setup and different requirements as well.

3. Applying for the license- The most crucial step is to apply for a license. Applying for a license for a  company at any place follows a few basic steps that are mostly the same for all of them. If you apply on your own or through a business consultant, you have to include some important paperwork, such as:
Application form completed, Copy of the proposed owner’s or owners’ passport, Two passport-sized color photographs.

4. Applying for visas– Application of visas for yourself,family members, and employees need to be submitted.

5. Opening a corporate bank account- There is now a need to open a corporate bank account for the company.

If all documentation is done properly, the license and other essential documents are available within 2 weeks.

How Projectfrpjsc helps you

In matters like business setup, people tend to get confused and get in chaos due to several rules and requirements. This is the time when people tend to look for an expert. A lot of chaos can be avoided if guidance is taken from the very beginning. We at Projectfrpjsc are a team of experts who are here to help you with your queries related to all types of business setup.

Conclusion

Setting up a facility management company in Dubai provides a lot of opportunities. It is easy to set up a facility management company in Dubai by following a few simple steps and with the help of expert guidance.

On the light of recent policy changes, company/business set up dynamic has changed greatly. The new company formation in Dubai rules not only provides flexibility but efficiency and overall path to greater performance through a wider reach. Company setup or business setup in Dubai has never been easier. Let’s run down a few pointers on how the new policy reforms and changes have reflected on company formation rules for businesses in Dubai.

Dubai in demand as a business hub

With the recent changes, foreign companies and investors have seen a greater acceptance of flexi desk companies. It poses less of a challenge of having a physical residential address for initiating a corporate account in central banks. Through this reforming not only have there been more business setup in Dubai mainland taking place but UAE as a region is providing a larger scope for companies to be set up in this current situation. Company setup in UAE will see a greater change of pace through this new implementation.

Business activities

Dubai offshore company setup is no easy feat. The ingredients to setting up a successful company not only relies on the beneficiaries but getting through and understanding various guidelines and policies. With many business ideas being brought to the table every now and then only a few are given the green signal when it comes to banking rules and other legalities.

To overcome this, companies may consult business setup consultant Dubai to run them through the process of bank approvals and other important formalities. As the market grows banks are inclined to approve companies with stronger and risk-free business ideas. However, if the right steps are taken this banking issues can be solved in no time with Projectfrpjsc.

Rules on taxes and laws

With the introduction of the Value Added Tax (VAT) in 2018, it’s safe to say that the UAE business economy has seen a significant shift. Through VAT there has been a change in business operations and cash flow along with clientele relations. Creating greater opportunities VAT puts companies on the same page with their international partners.

As the new changes come into effect and have brought on new rules such as the 100% ownership for 122 economic activities, this creates a ripple effect of growth throughout the region. Thus, consolidating UAE as the business hub of the MENA region. 

Through these changes not only will companies benefit from it but the UAE as well due to the influx of various businesses and companies wanting company formation consultants in Dubai in the booming economy such as the UAE. The current market becomes more feasible and viable for FDI and company formations thus making it the right time for you to invest in your company and change the game. 

Want to start your own startup or SME in the UAE but do not know how to go about the process? Planning the right business setup service can be tricky and challenging not to forget demanding as well. Projectfrpjsc can be your one-stop-business setup consultant. Get all your business doubts checked out at Projectfrpjsc. We provide excellent consultation on company and business setup in Dubai. 

What is a Startup?

A startup is a business or project undertaken to validate, grow and develop a product or service to incorporate it in the market. Usually, a startup is financially backed by investors. Startups in UAE are set up and expanded in hopes of converting to an SME most of the time. Though the transition might be hefty startups can be the right base for your future enterprise.

What is an SME? 

SME stands for Small and Medium-sized Enterprises. It is a type of organization that maintain employees, revenue under a certain threshold. Generally, referred to new small enterprises in the market. According to the World Bank, SMEs are a major component in the global economy. They create job and company setup in UAE opportunities and account for about 90% of businesses and 50% of worldwide employment. But what could be an SME is subjective but generally applies to the aforementioned businesses. In the current market, SMEs contribute to about 95% of establishments under which 42% adds value to the Dubai market while 40% compiles the nation’s workforce. 

 

How Projectfrpjsc can support new startups and SMEs in the UAE

Projectfrpjsc can help you with the initiation and functioning of your startups and SMEs in the UAE. Here’s why – 

• Our primary goal is to make your business as smooth and hassle-free as possible with our services.
• We provide expert business solutions in regards to company formation in Dubai mainland, administration, and banking queries.
• Our banking facilities that will help you with your startup includes
  • Company Bank Account and how we run our clients through the various banking regulations and policies to ensure the best. We help our clients choose the right bank for their business transactions.
  • Trade Finance by optimising companies profits and availing higher discounts on bulk orders and generating increased workflow. Through the guidance of our team of experts, we assist clients to navigate in the international market.
  • Increasing business capital by finding suitable commercial banking options. In order to allow complete transparency, we brief our clients and their investors on the ins and outs of the entire business set up procedure.
• Our consultancy allows clients to explore their business solutions such as company setup, banking services, auditing, etc.
• With our competitive and transparent pricing, Customers can use our cost calculator for company setup in UAE for actual pricing and fees.
• We maintain absolute confidentiality and integrity in matters concerning privacy and security. 
• Our services also include web-designing and digital marketing through cutting-edge tactics.

Setting up a company in a foreign land may be a huge challenge for lots but with Projectfrpjsc every aspect and aspirations in terms of your business can be handled and optimised. With the right tools and consistent effort, Projectfrpjsc can support new startups and SMEs in the UAE.

Projectfrpjsc

Having the right brain and team behind your company is a vital part of company setup. You might be new to it or need to know the current market status to take the right steps to ensure absolute success, that’s where Projectfrpjsc comes into play. Projectfrpjsc provides the right tools to ensure you the best choice for business setup in UAE. Having successfully assisted in setting up 1000+ companies Projectfrpjsc is the right place for your business needs and your wish to starting a business in Dubai.

Free zone

Free zone companies are those which are licensed to practice in the same free zone or internationally. Mainly used for imports/re-exports, free zone companies must follow special jurisdictions issued by the authorities concerned. The free zone is one of the preferred ways for expatriates to do business setup in Dubai.

Offshore zone

Offshore business setup in Dubai enjoy a majority of the perks of the free zone but the significant difference between the two is anonymity. Offshore companies enjoy a much more flexible structure as it allows them to keep details anonymous, unlike free zone. They also enjoy similar perks of ownership, like freezone. They are generally used as an asset for other companies working in or outside UAE.

Difference between free zone & offshore

The difference between free zone & offshore are as follows:-

 

	FREE ZONE	OFFSHORE ZONE
Scope of business	Does not allow direct trade in the local market however in case one does wish, they are required to pay 5% duty for the local market invoices. Apart from that free zone companies may do business in the same free zone or internationally.	Offshore companies are also registered under free zone however they must not be substituted for free zone. Offshore companies enjoy many benefits of the free zone except for the fact that offshore companies may conduct their business activities externally and not inside the country.
Ownership	Free zone companies enjoy 100% ownership	Offshore companies also enjoy 100% ownership over their business
Office space	Depending on the needs a company may or may not decide on leasing an office space. Companies can remain active through Flexi desks/smart offices.	Companies under the offshore zone are not allowed the option of renting an office space as is the address of the company
Visa Facility	In general free zone companies are issued 2 visas with 3-6 being issued as well. However, an office space must be leased to avail more visas	No visas are issued for companies under this zone. Neither are letter of credits.

Why Projectfrpjsc is the best choice for free zone & offshore company registration

Projectfrpjsc is the best choice for your new company formation in Dubai because

• We assist our clients with all the nitty-gritty details of company administration. We help you with your business formation in Dubai.
• We provide the best resources to help you determine the right solutions for your business needs. We are your one-stop solution to setting up your business in the UAE.
• We provide solutions for PRO services, VAT, auditing, accounting, etc.
• We help our clients to choose the right bank for their everyday transactions. Aiming to make them more flexible and quicker for your Dubai business setup procedures.
• We have great consultants that help our clients budget their options in the most effective way to set up and operate their offshore company formation in UAE on the right foot with the right financial foothold.
• We also focus on website designing, and digital marketing as we choose the right tool for your business growth.