Things to Consider Before Setting Up an IFA Business Set Up in Dubai
An IFZA business set up in Dubai is one of the most critical factors considered by expatriates looking to start a new business venture in the emirate. The “IFZ” (International Fairs in Dubai) is a free zone for businesses, where international trade is allowed and supported. It is also one of the safest investments an individual can make, as the government in Dubai has a very stable economy, and there are no personal taxes payable to the government, nor any income or corporate taxes owed by the business entity. There are several reasons why an individual looking to set up a business in Dubai should consider going through the free zone. The most apparent reason is that the cost of doing business in the free zone is much lower than doing business in any other part of the country. This means that the potential earnings from a single transaction can be huge.
However, this advantage can also be a disadvantage, especially for smaller businesses. The market is very competitive, and the local economy is growing at about 5% a year. This means that companies operating in the free zones have to compete with larger multinational corporations from across the world. If they fail, they will suffer significant losses. If they succeed, they could become the most influential player in the market, which can only mean good things for their business setup in Dubai.
As an individual looking to establish a business setup in Dubai, specific measures should be taken to ensure maximum safety and feasibility. Dubai is one of the few destinations in the world that offers much scope for investment. The free zones attract large numbers of foreign nationals, mainly from northern Africa, the Middle East, Asia, and some parts of Europe. Some of these investors decide to establish a manufacturing unit that can employ thousands. Others choose to set up an international free zone authority or a Co-Branded subsidiary that will market the products and services they offer locally.
Once the investor has decided to establish a business setup in Dubai, he should look into the right business activity that he needs to engage in. He can get a business license package from the Dubai government or look into getting a visa quota from the United Arab Emirates. Both of these packages are quite lucrative and can prove to be an excellent investment. However, if one is looking forward to investing money into Dubai’s commercial properties, it is advisable to look into an investment property in Dubai that is not covered by a visa quota. These packages are not that lucrative as a result, and the chances of securing a visa are relatively low.
If an individual is looking forward to investing directly in international businesses in Dubai, he can opt for an International Business Operating (IBA) or a resident visa package. IBA office solutions and resident visa packages are quite popular with international businesses and expatriates setting up their Dubai operations. These office solutions come with various benefits, including business registration, legal consulting services, and high-quality financial services that help streamline international businesses’ processes in Dubai.
A majority of the foreigners who plan to invest in Dubai properties opt for the IFZA route because it is easy to get a legal service in Dubai, and it comes at very competitive prices. Moreover, all necessary documentation requirements can be fulfilled quickly and easily via the IFZA process. A majority of the investors also prefer to get their permanent residency visa (PR visa) immediately after arriving in Dubai to not wait for the exit visa required for most international people in the business. On the other hand, many foreign people in the corporation prefer to get an exit visa and then move on to another location, reducing their investment in Dubai.
The investment that the individual makes in an IFA unit is tax-free, whereas, in a UAE-dominant business, a UAE national may have to pay some percentage of his annual income as tax. Therefore, it is easier for an individual to set up a Dubai Private License (DJP) and get the benefits of being treated as a legal permanent resident of the country. However, there are some things that you should remember before investing in Dubai property through a Private License (DJP). If you have a previous criminal record in the UAE or any other country, you may face problems while purchasing any property within the emirate. If your company has any forms of financial fraud or blacklisted companies, you may be denied a license to set up an IFA unit.
An IFZA unit allows you for ifza business setup in Dubai without hiring a large team of personnel who would manage the business affairs. Also, you enjoy the convenience of working from your personal computer. Although many foreigners are attracted to business opportunities in Dubai, many people do not realize that they need to have some unique assets to set up an IFA. If you are going to invest in Dubai real estate, you should ensure that you have a considerable amount of foreign currency to open a bank account and carry out all the legal business activities such as making deposits and paying salary.
