How Can Startups Benefit From Company Formation in Dubai


Since the last few years, Dubai has metamorphosed into a business behemoth, with more and more startup companies rising on the horizon. With the winning combination of state-of-the-art infrastructural networks, excellent communication networks, a vibrant economy, favorable investment atmosphere and governmental support, logistics support, relaxed immigration formalities, increased foreign ownership, and ease of company formation, Dubai is the ultimate business destination for any company that wishes to capture the rapidly expanding markets of the Africa, Asia, and the Middle East. Since startups are an important component of local economies, Dubai has been offering stimulants and incentives for their development. Ranked among the top five global cities for entrepreneurs, Dubai offers more than you expect. If you are the owner of a startup, here are all the benefits you can garner from company formation in Dubai.

A Thriving Economy

When we talk about the Emirates, Dubai is the most successful in terms of economic growth, which is why it attracts entrepreneurs from all over the world. Sectors such as tourism, transportation, logistics, and trade account for almost 60 percent of Dubai’s GDP. Startups need governmental support to function, and Dubai is where you can actually find this support. Dubai’s Department of Economic Development (DED) is responsible for providing all support needed in creating a favorable investment atmosphere for startups. Not to mention, Dubai’s strategic location between Asia, Europe and Africa and its proximity to China and India makes it the ideal gateway between the east and the west, helping startups tap into a global audience easily. The best part is that all companies in Dubai enjoy a tax-free haven, which is especially beneficial for startups. In a nutshell, this global city encourages startups, provides infrastructure for their growth, and proffers facilities to spread them across the globe.

State-of-the-art Infrastructure

Be it airports, telecommunications, or road networks, Dubai boasts one of the finest infrastructural facilities in the world, and continues to invest heavily in developing infrastructure. Being a significant player in international trading and transport logistics, Dubai has one of the best road infrastructures in the world, not to mention, Dubai’s Jebel Ali port is the largest port in the world, benefiting from a strategic geographical location and top-notch facilities. Dubai also provides immense facilities in air transportation and air cargo, with two major international airports. With world expo 2020 just around the corner, Dubai is furthering improving its infrastructural facilities.

Free Zones

Dubai has more than 30 operational Free Zones, accommodating several industrial and business clusters, such as healthcare, media, information technology, education, and so on. The greatest advantage of free zones for startups is that they allow non-native entrepreneurs to retain 100 percent of company ownership, as opposed to setting up shop in Dubai mainland, where you are entailed to involve a local business partner who is entitled to 51 percent stake in the company. These hubs offer plenty of amenities such as affordable office space, hotels, warehouses, mentorship programs, and retail stores, in addition to infrastructural facilities such as premises, roads, connections. Business owners enjoy full exemption from the corporate and other tax payments and fees when working in any of the free zones, as well as opportunities for the repatriation of the invested capital and gained profits and full exemption from the corporate and other tax payments and fees. Most of these free zones are located near the sea, facilitating import, export, and logistics. All you need to do is to acquire the pertinent license for your business activity and enjoy numerous support from the free zone you are operating in.


Dubai is a safe, crime free country, free from Agitation, aggressive demonstration, and communal riots. Such a low crime rate makes Dubai the best place for launching your startup. Dubai is in the top 20 safest cities in the world, which means that you can easily conduct business without any fears.

Great Incentives for Businesses

Dubai doesn’t just offer incentives to large investors, but also provides facilities to small businesses and startups. The government of Dubai is keen to take the suggestions of all businesses when it comes to decision making, and takes into account the problems of all sectors before proposing a solution. The government of Dubai keeps announcing incentives for different business sectors to support various businesses.

Dubai also provides ample marketing opportunities to budding businesses, in the form of various events and conferences throughout the year. These trade events offer the perfect opportunity for startups to make their presence known to a global audience.

10 Year Residence Visa

As compared to other emirate countries, Dubai is extremely friendly to foreign investors. This is evident by the fact that Dubai offers a 10 year residence visa to foreign investors so that they can make Dubai their second home. The simple and quick visa process attracts many investors to Dubai.