The novel coronavirus has brought the entire world to a standstill and it continues to wreak havoc. The pandemic has not only endangered the lives of people but also the various business sectors. 

Major IT companies around the world are suffering from massive losses due to the lockdown. Working without physical coordination it can get difficult for such organisations to survive, as they have operations that need close support for better results. 

According to a BBC report, the coronavirus lockdown is forecasted to have a bigger impact on the economy than the 1930’s ‘Great Depression’ and if the lockdown continues for a longer period of time, it would lead to a steep 8 points drop in the GDP. A decline of this magnitude can disrupt the supply and demand chain and lead us to another global recession. 

In such chaotic times, having a contingency plan for your company is a must but the success of these plans can be hard to scale. Moreover, it can be difficult to make forecasted decisions considering the volatility of the markets. Though you might think avoiding any forms of investments can save you on finance. But you also need to consider that you have to survive a probable recession and might need a strong capital influx. 

The solution for your business problems lies in the Middle-East. 

While the world is battling against COVID-19 and making efforts to control it, the leaders of the Middle-Eastern countries are working proactively to make sure that their economy stays atop after it all settles down. 

The proactive planning and forecasted progress ensure that Middle-Eastern countries would be among the first ones to have a stable economy. This indicates that investing in any sector in the UAE can be highly beneficial. 

After the end of COVID-19, the gulf countries will be focused on commencing all the operations and starting the trade and commerce to revive the economy. This gives you a great opportunity for establishing or investing in a business in the Middle-East. 

There are many Middle-Eastern countries that have better growth potential but to make a wise choice and profitable business venture, Dubai can be an ideal place for investment.

Why Dubai for IT? 

Apart from the fact that Dubai is the business hub of emirates with all the biggest organisations conducting business. There lies an underlying opportunity that can be used to commence a flourishing business.

 

• Business growth Potential: 

 

According to a survey conducted, 48% of the businesses in Dubai have gone digital to reach their customers. However, these businesses lack the digital infrastructure that can help them manage their digital business. By commencing a business in Dubai, you can reach out to such clients and grow your business. 

 

• Experienced candidates: 

 

Moreover, as a foreigner, you benefit from the lack of corporate taxes and the repatriation of profits. Apart from the tax benefits, investors can hire candidates for work who have migrated from Dubai from different countries of the world. Dubai is also one of the most developed internet infrastructures, which can be an advantage to your business.

 

• Unprecedented Growth:

 

When it comes to investing in Dubai, there are innumerable ways to grow your business. To accelerate your growth, you can open a business in the mainland region which gives you access to unlimited opportunities.

Dubai has a close to 106,000 firms and the number of companies continues to grow. This has led to 8.7 per cent growth in digital transactions in the country. It can be a great opportunity to boost your business by connecting with these companies.

According to a World Economic Forum report, the major contribution to the development of Dubai has been from the Information and Technology sector and still has the potential to do so in the near future. Here are some facts that can prove the same:

• The city’s population consist of more than  2.5 million people who have adopted the highest levels of Information and Technology and benefit from the same.
• The government of Dubai also aims to reach out to the people and cover their needs through digital services.
• Government is also planning to start an autonomous transportation system that will enable it to complete 12% of the city trips. In addition, it is estimated that the use of public transport is bound to increase by 2021. 

When considering these factors as opportunities for growth the chances for progress are seemingly commendable. However, to set up a company in Dubai, there is an entirely different and elaborate process that has to be followed. 

• Size of the Company: If you’re not a Dubai resident or have any partners who are a citizen of Dubai. You can set up a Limited Liability Company  (LLC). An LLC can be established between 2 to 50 people. 
• Share capital: To get your company registered and operational you need to show a certain amount as the share capital to the government. The declaration of share capital demonstrates your confidence towards the investment and provides the government with an assurance that your business will not fold.

The required share amount of capital can vary according to the freezones. 

• Get Local sponsor: To set up your business you need to have a local sponsor who will hold 51% of the share in the company but will not partake in any operational activities or profit-sharing. Our expert agents can help you get a local sponsor to facilitate your business set up at a considerable annual sponsorship fee.  

 

• Documentation: In order to initiate the registration process, there are some documents that you have to the government of Dubai. The documents comprise of 

 

1. Company name and complete registered address, 
2. Names, nationalities and other details of the shareholders and their capital contribution
3. Names, nationalities and other details of the managers
4. Details of Profit and Loss and other financial statements of the company

Setting up a company in Dubai can be a great step towards turning your business into a global enterprise. Even though the process may seem elaborate and time-consuming, we at Euphoria Business Solutions ensure that you have a seamless business set up. Our experts are well-versed in the legal formalities of business set up and can help you get your business started within the stipulated time.