Skip to main content

Important Facts About Setting-Up A Business in The UAE


Why Set-up your Business in UAE

 Setting up a business in the UAE offers access to a lucrative market, favorable business conditions, and a high-quality lifestyle for both business owners and their employees. With its strong economy, advanced infrastructure, and business-friendly policies, the UAE is an excellent choice for entrepreneurs looking to establish and grow their business in the Middle East and beyond.

 

  Here are some facts about Setting-Up Business in the UAE: 
 

  1. Determine the type of business entity: In the UAE, businesses can be set up as a sole proprietorship, partnership, limited liability company (LLC), or a branch of a foreign company. Each type has different requirements and implications for ownership, liability, and taxation.
  2. Choose a business activity: Before setting up a business in the UAE, you must determine the type of activities your business will engage in. Different activities may require specific approvals and licenses from government authorities.
  3. No local sponsors required: 100% ownership to setup your foreign company here in the UAE freezone and Mainland.
  4. Obtain necessary licenses and approvals: Depending on the type of business activity, you may need to obtain various additional licenses and approvals from government authorities. This may include a trade license, commercial license, industrial license, and other permits.
  5. Open a bank account: To operate a business in the UAE, you will need to open a bank account within the UAE.  Most banks require a minimum deposit and certain documentation, such as your trade license, business plan,  passport, and visa and emirates ID. 
  6. Register with the Dubai Chamber of Commerce and Industry: Businesses in Dubai are required to register with the Dubai Chamber of Commerce and Industry. This registration provides access to various services and networking opportunities.
  7. Understand the taxation system: The UAE has a favorable tax regime with 9% Corporate Tax. However, there is a value-added tax (VAT) of 5% on goods and services, as well as customs duties on imported goods.
  8. Comply with labor laws: As an employer in the UAE, you must comply with labor laws that govern employment contracts, working hours, leave entitlements, and other employee rights.
  9. Consider hiring a local consultant: Setting up a business in the UAE can be complex, especially for foreign entrepreneurs. Hiring a local consultant or legal advisor can help navigate the process and ensure compliance with local laws and regulations.
  10. Understand cultural norms and business etiquette: Doing business in the UAE requires understanding and respecting local customs and traditions. Building strong relationships with local partners and clients is key to success in the UAE market.

 

Advantages of Setting up a Free zone Company in the UAE

 

  1. 100% foreign ownership: One of the biggest advantages of setting up a free zone company in the UAE is that foreign investors can enjoy 100% ownership of their business. This allows investors to have full control over their company's operations and decision-making processes.
  2. Easy company setup: Setting up a free zone company in the UAE is a relatively straightforward process, with minimal paperwork and processing time. Free zone authorities provide support and guidance to investors throughout the setup process, making it easier for businesses to establish a presence in the country.
  3. Access to world-class infrastructure: Free zones in the UAE offer state-of-the-art infrastructure and facilities, including modern office spaces, warehouses, and logistics services. This can help businesses operate more efficiently and effectively, leading to increased productivity and profitability.
  4. No currency restrictions: Free zone companies in the UAE are allowed to operate in any currency, without any exchange controls or restrictions. This provides businesses with greater flexibility and ease of doing business, especially for companies that have international operations.
  5. Strategic location: The UAE is strategically located between Europe, Asia, and Africa, making it an ideal hub for businesses looking to expand into new markets. Setting up a free zone company in the UAE provides businesses with easy access to a growing consumer base and lucrative business opportunities in the region and beyond.