Vigor Business Center – 3 Reasons to Start Your Business in Dubai

Offshore Business Setup UAE
  • Post author:
  • Post category:Company Setup
  • Reading time:4 mins read

Launching your business in a different country can be intimidating and nerve-wracking, especially when you aren’t quite familiar with the market and business prospects about how to start your business in Dubai. However, if you’re considering the United Arab Emirates for your business, you won’t have to worry. It has one of the best business environments in the world, with a welcoming and supportive company filled with ambitious ex-pats.

In fact, thousands of businesses launch in Dubai every year. Things barely slowed down during the pandemic; more than 40,000 business licenses were issued in 2020. Additionally, ex-pats make up roughly 85 percent of the country’s population, many of who are entrepreneurs, which means you definitely won’t be alone in your venture. Here are three reasons to start your business setup in Dubai:

1. No Tax on Your Income

One of the main reasons to start your business in Dubai is because the UAE does not tax personal and corporate income. That’s right—zero tax for your earnings! However, there’s still Value Added Tax or VAT to be aware of, which is at a flat rate of 5 percent. If you set your business up in a free zone, you can take advantage of 100 percent repatriation of capital and profits, deal with no currency restrictions, and 100 percent import and export tax exemption. It sounds too good to be true, but the great news is that it is!

That’s means more cash flow for your business, which is crucial for a startup. These advantages will improve your startup’s profitability and allow you to enjoy more liquidity, giving you more disposable income that you can put back into your company.

2. Support for Startups 

 The UAE has many funding initiatives that are geared to increase business growth. For example, the Mohammed Bin Rashid Innovation Fund, worth 2 billion AED, funds innovation projects while providing expert guidance and support to make business ideas come true.

Several of the UAE’s free zones also have startup incubators and venture capital forums that help small businesses find funding and grow.

Even better? The UAE government awards at least 10 percent of government contracts to small businesses every year, as mandated by law. Additionally, Dubai revealed plans to lessen payment cycles for SMEs to increase liquidity and encourage growth.

Since the country has fostered an environment specifically designed to help businesses grow, you’ll receive plenty of support in launching your business, whether it’s mentorship, advice, or funding.

3. A Thriving, Vibrant Economy to Start your Business in Dubai

The UAE has the second-largest economy among the Arab nations, boasting a GDP of roughly AED 1.5 trillion or USD 421 billion, trailing Saudi Arabia.

It also has a diversified economy where sectors apart from the oil and gas industry make up 70 percent of the GDP. That means different industries like technology, healthcare, and hospitality have thrived here, demonstrating the many profitable opportunities that entrepreneurs can explore.

The country even earned praise from the Index of Economic Freedom for its “broad-based and dynamic growth… underpinned by continuous efforts to strengthen the business climate, boost investment, and foster the emergence of a more vibrant and diverse private sector.”

A strong economy encourages investment, which means your startup will likely receive funding and support from interested investors.


Dubai is an excellent place to get the ball rolling with your business. You’d be hard-pressed to find another country that is just as supportive in turning business ideas into reality through numerous initiatives and projects along with zero tax. For all these reasons, you’ll have everything to gain by registering your company in Dubai!

If you want to launch your business in the UAE, Vigor Business Center is the one to call. We are a business setup company in Dubai that simplifies the formation of your business by providing expert and professional counselling and advice. Contact us today to get started!