Written By Antima – 28^th July’22

Is it safe to start a business in Dubai? ( Covid – 19 & other factors )

You’ll need strong infrastructure, financial and human resources, transportation, buyers, and, most importantly, a safe and secure location to start any business. However, new investment and company growth have been severely hampered throughout the world as a result of the possible risks posed by the COVID-19 pandemic. While many countries struggled to cope with the crisis, the UAE government acted quickly to protect the safety of its residents and companies. As a result, Dubai has been regarded as one of the top five worldwide destinations for entrepreneurs. 

Dubai chose to take a chance and gradually reopen its economy while undertaking one of the world’s largest immunization campaigns. Other nations are anxiously examining the techniques used to determine the inferred success rate of Middle East business and tourism hub prices as a test case for resuming normalcy. There are hopeful rumours that Dubai would lead the way and become a “Vaccination Tourism” destination as well.

Healthcare, tourism, start-ups and entrepreneurial enterprises, IT and online education, among other areas, have seen increased output. The safety precautions at each site are quite strict, yet the enjoyment quotient is high 

Despite the COVID-19 issue, here are seven reasons why Dubai is still the greatest place to establish a business.

1. Government Support to Businesses

• The Dubai government is generously assisting businesses by providing various packages that include a 25-98 per cent reduction in company expenditures.
• The main goal is to stimulate investment in business-related activities, as well as to enhance production, trade, exports, and innovation for business development while minimising the impact of COVID-19 on Dubai enterprises.

2. Specific Measures For Start-Ups

• During this time, the UAE government is attempting to assist small companies. The government has introduced several initiatives to help new enterprises start, including the provision of certain fee waivers
• Office rental holidays
• registering a business online
• a more flexible payment plan, such as monthly payments

3. Support from Banks & Financial Institutions

• Banks are also assisting SMEs with debt management by providing loan repayment holidays and lowering costs.
• Financial institutions and other agencies, such as the Dubai International Financial Centre and the Dubai Silicon Oasis Authority, are lending money to struggling businesses. 
• Potential funding is being offered by investment firms and accelerators such as AstroLabs and Payfort.

4. The UAE Government’s “Targeted Economic Support Scheme”

• The UAE government’s major corporate-beneficial programme is the “Targeted Economic Support Scheme.”
• For all private sector firms affected by COVID-19, this plan intends to give interim respite from principle and interest payments on existing loans.
• Bank capital buffers have been freed up to promote more lending to private sector firms in the need of credit during this period.
• Attempts to ease employment restrictions while safeguarding employees by establishing a legal mechanism for agreeing to pay cuts.
• Relaxed rules on employee transfers between free zone-registered businesses, providing employers with an alternative to a temporary layoff while keeping the person employed.

5. Other Government Measures

• Tenants who are unable to pay their rent because of the COVID-19 pandemic are excluded from eviction to deal with property expenditures.
• A ten per cent decrease in water and power costs
• Companies are exempt from obtaining permissions for new sales and offers.
• 20 percent of the customs charge paid on imported goods sold in Dubai is refunded.
• Fees imposed on the filing of customs paperwork have been reduced by 90%.
• Security deposits and guarantees are refunded.
• Fines imposed on both corporations and individuals are being cancelled.

6. Voluntary Support from Organizations and Business Coaches

• Small and medium-sized businesses are benefiting from free webinars, coaching, and consultancy services provided by organisations and people.
• Bessern and The Co-Dubai, provide free sessions of their business coaching’s to individuals in need.

7. Government Control Measures To Minimize Risk of COVID-19

• Before obtaining orders from WHO, the UAE government has taken all necessary steps to reduce the danger of COVID-19. As a result, the UAE has been one of the first nations to implement the necessary safety and preventive measures, as well as different control mechanisms, to mitigate COVID-19’s effects on Dubai’s companies.

Conclusion 

For many years, the UAE has had an advantageous tax environment for enterprises, which has attracted and kept foreign firms registering here. Moreover, during the COVID-19 epidemic, the UAE government took immediate action to address the pandemic’s impact on companies. That is why, despite the COVID-19 issue, investing in Dubai is still an excellent choice.

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.

Can you start a business in Dubai while being employed in Dubai?

The UAE guarantees that its workforce is content in their jobs and has a healthy work-life balance. To guarantee that their staff is infused with excitement and the desire to become productive, firms in Dubai use an employee-first strategy. Many employees, on the other hand, desire to start a business while working full-time.

The employer’s NOC is required to do so. After obtaining the NOC one can apply for a trade license under their visa.

The employer can accept or reject your application for NOC however you can still start a business. Many free zones do not require submission of a NOC to start a business while still staying a legal employee in Dubai.

How to start a business in Dubai while being employed?

While working, it is advised that you apply for an instant license to start your firm. Here are the fundamental stages to getting your business off the ground.

1. You can get an instant license at a DED desk. You’ll need the UAE pass if you want to apply on your own.  Use your Emirates ID to register on the official portal. Then go to the DED website and get your business credentials updated. This is required to make the government bodies aware of your legal status in the Emirates.

2. Register on the DED website and fill out the needed information. To make the process go more smoothly, you may hire a business consulting agency.

3. To acquire your immediate license, follow the steps outlined on the DED website. The company’s trade name, the names of its stakeholders, and your business activities must all be supplied.

4. Sign the electronic/manual MoA and submit it for approval to the department.

5. It is necessary to obtain the approval of business partners. All of your business partners will receive a text message.

6. To pay for your license, create a payment voucher. Once it’s up and running, make the required fees and the procedure is complete.

Why is it important to obtain a NOC?

It is recommended that you get a NOC whether your firm is based in a free zone or on the mainland, or if your enterprise will be located in either. A certificate will grant you immunity in the event of a future dispute.

How to obtain a NOC?

An employee who wishes to acquire a NOC must complete the procedures below:

• Submit a request via the Dubai Trade Portal.
• Provide the necessary papers.
• Pay the AED 500 NOC issuing cost.
• Obtain Department of Economic Development permission for a NOC.

The NOC must be stored in the current company’s records once it has been approved.

Essential documents to obtain a NOC

The following documentation must be provided to get a NOC from the existing company:

• Copies of all partners’ passports
• a copy of the company’s reservation of name
• Articles of Association (AOA) and Memorandum of Association (MOA) copy
• AED 50,000 bank or cash guarantee

If one receives a NOC from the present firm, he or she will be able to start a business in any area of the UAE. If this is not the case, there are still free zones that do not require a NOC. So the question isn’t whether an employee has a NOC or not. The true question is whether or not one is prepared to take the reins as an investor.

Opening a company without a NOC

No company is bound to approve your NOC. Even though most employers approve the NOCs of their employees, some do not. This is due to compliance and security reasons. However, it is still possible to open a company in Dubai by following the steps mentioned below.

1. Use your spouse’s visa

If your NOC isn’t approved and you are in UAE with your family or spouse, you can use their visa and name them as the managing director of the company as it is illegal to open a business with the same visa in Dubai if you are already employed.

2. Apply for a DED instant license

You can apply for an instant license to carry out your business under special government-maintained guidelines. No physical documents are required in this case.

3. Choose the appropriate Freezone

You can open a company in one of the following free zones-

• SHAMS Freezone 
• Creative city Fujariah 
• Ajman Freezone 
• Um-Al Quwain Freezone
• Fujairah free trade zone

These free zones do not require a NOC certificate from employed people to start their business ventures.

Freelancers do not require NOC from their clients. They can run their own business in parallel to working with their clients.

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.

Written By Antima – 26th June’22