The United Arab Emirates has been recognized as one of the most prosperous and fastest growing commercial and trading hubs in the world. Listed in top 20 best places for global business services, it offers umpteen benefits to not only national but also international business owners.
Investor friendly government, no restriction on repatriation of capital, zero corporate or income taxes, a stable and secure currency, low or non-existent import duties, and competitive labor costs make UAE a lucrative business destination for expatriates and investors.
Once you decide to set up your business in Dubai, it will not take you more than a week to sort all your legal formalities. However, you must remember that rules and regulations for operating your business in UAE could be different from your country of residency.
So, whether you are a fully established business entity or an entrepreneur planning to start a business in UAE, here are top 8 things to consider before you take the plunge:
Choose your business wisely
While starting up a business in UAE is one of the most profitable decisions for the success of your firm, you need to keep in mind that not all business activities are allowed in UAE. The Department of Economic Development (DED) in Dubai lists over 2100 permissible business establishments that you can choose from.
Also, the type of your business will determine the operational license you require – commercial, professional or industrial.
Pick the right jurisdiction
Dubai’s business jurisdictions are segregated into different zones. For 100% ownership of your business, you need to choose from many free trade zones of UAE. Doing so, you can enjoy:
- 100% import and export tax exemption
- 100% repatriation of capital and profit
- No personal income taxes
- No corporate taxes for 15 years
- Assistance with labor recruitment
Select the shareholding structure
Business setup in UAE is determined by the shareholding structure you want to choose for your establishment – Sole Partnership, Limited Liability Company, Public Shareholding, Private Shareholding, Limited Partnership or more. This will also help you analyze the legal form you require for your business. So, choose your shareholding structure wisely as it needs to perfectly coincide with your business operation and preferred jurisdiction.
Partner with a reliable UAE national
For setting up a business in mainland UAE, it is mandate to partner with a UAE national, who will hold 51% of partnership share. Find a one who’s reliable and trustworthy – this will assure great support, 100% security and complete charge on your business. For free zone, you need to hire a local service agent, who will help you establish your company in UAE for a nominal service fee.
Seek all necessary approvals
Before starting a business in UAE, you need initial approvals and trade licenses from DED. Apply for them beforehand to minimize wait time and delays. Depending on the nature of your business, you may require external approvals from non-government and semi-government bodies. Speak to your legal advisor to check the permissions you require for company formation in UAE.
While setting up a business in UAE needs some levels of expertise and process knowledge, appointing a business setup consultant can help you ease down the process. It will also ensure that your hard earned money doesn’t get wasted on unnecessary documentation and legal formalities. So, in case you are planning to set up your business in UAE, get in touch with us at 00971 55 679 1998.
Our experts ensure astute planning and execution to help you get through different phases of business formation. We assure maximum profit and minimum liability for complete success of your firm.