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Starting a business in the UAE is relatively simple, with minimal complications. This is why many foreigners have begun and are jumping onto the bandwagon. If you are new to setting up a company in UAE, we will guide you about the basics of business setup and the things you need to know. Let’s get started.
If you want to start a business in the UAE, it would be a great idea because the local government continues to encourage investors with startups in many ways. This is why it is an excellent time to jump on the board. Doing business in the emirates is relatively easy because setting up a company is easy, and the government also offers long-term visas for investing as well.
To start a business in the UAE, you need to start by looking at the popular sectors in the country. You’d want to consider the things people are looking for and missing ones. The aerospace, automotive, gas, and oil industries are doing well. There is potential for growth in the beverage and food, advertising, and marketing sectors as well.
You don’t need to worry about starting a business in the UAE because it is relatively easy so anyone can do it. This is because the government offers several incentives for companies to set up here.
You need to know that an Emirati partner is required who owns 51% of the business with most companies other than the sole proprietorship. Then you need to go through the registering and licensing process to set up your business. You may need to meet the requirements of minimal capital. Free zones are unique places popular with foreign investors since 0% corporation and personal tax and 100% ownership are offered along with tax export and import exemptions.
Before starting a UAE business, you need to consider what type of company you want to form. The Emirates has different legal corporate structures. Here are some of the common ones you need to know about.
This type of company is owned 100% by an individual, giving complete control over all the profits and operations. While all the nationalities are free to make sole proprietorship companies, the GCC and UAE nationals can only have an industrial or commercial company.
Professionals like accountants, doctors, and lawyers may open any civil company business in the country. Here too, an Emirati national will own 51% of the business.
A foreign company may also set up a branch in the UAE. Here, the company is owned 100% by the parent company. The goods, however, need to be imported via a local firm.
Two to five stakeholders are needed for businesses wanting to operate in the free zone. While setting up a company in a free zone offers benefits, these companies may not directly trade in the market in the UAE. Therefore, the requirements here vary.
There needs to be somewhere between 2 to 50 shareholders in an LLC. Here, one is only liable for their percentage of shares. The losses and profits and divided between all the shareholders as per their holdings. Again, 51% of the shares are owned by a national of the UAE.
It is relatively easy to step a freelance business in the UAE. You must register in a free zone with a cv, application form, bank reference, and notarized registry code. You may also apply for a visa.
The process of business setup in the UAE isn’t arduous if you have the assistance of a skilled team to guide you through. We at Idea BiZone, are here to assist you through the entire process of setting up your business in the UAE. Here are the steps to follow.
In the UAE, several industries are operational, offering multiple options for innovation. While you may be pumped up to get started right away, it’s best to decide the nature of the business you plan beforehand. In the UAE, some locations only allow certain activities for the company. However, UAE’s sector-specific zones now also allow general business activities other than those designed for.
So, based on your business activities, you’ll need to decide on your related industry. In the UAE, several business sectors are functional.
After deciding upon the industry for your business setup in the UAE, you need to make the next decision about the location, whether you want to set it up in a free zone or the mainland. Suppose you plan to set your business in the free zone. In that case, you get 0% personal and corporate tax benefits, 100% ownership, 100% repatriation of profits and capital, no restrictions on currency, and 100% exemption from export and import tax.
However, if you want to trade in the UAE local market directly, you must work with a mainland company for an additional fee.
However, by setting your business setup in the UAE mainland, you can freely trade with international and local markets. In the case of professional service, you’ll have to get a local partner who holds 51% of the company shares.
Idea BiZone offers a local corporate nominee shareholder to mainland businesses who will work as your local partner, allowing foreign companies to maintain 100% financial and operational control over their company in the UAE mainland.
After deciding on the industry and location, you need to determine your company’s name. Since the UAE has some strict conventions for names, select a legally accepted name.
Offensive language names are not allowed; company names refer to Allah, some religious groups, and political or sectarian groups like Mafia or FBI. If you’re naming your company after someone, the person needs to be the company’s owner or partner. Also, the person’s full name should be used, with no abbreviations or initials.
If you’ve come this far in deciding upon setting up your business in the UAE, you need to complete the necessary paperwork. You have to complete the application for your selected company activity and name. The passport copies of shareholders are required to be submitted to the relevant authorities of the government. Some free zones may as you for additional documents like NOC, and a no-objection certificate from a recent sponsor, allowing you to set up another business here in the UAE.
When registering your company in the UAE, you need to fill in the application for registering your company’s activities and name and the shareholder’s passport copies. Mainland companies must meet the capital requirements that are to be mentioned on the MOA.
To register your business trade name and activity, you’ll need to contact the DED of your emirate and then submit the necessary documents. Under the government website of the UAE, you’ll find the respective office links. After the processing of your application, your company license will be issued.
Getting your paperwork complete can be daunting and tedious and may take you quite a while if you’re on your own. You can take help from Idea BiZone’s expert team to acquaint you with the process and help you alongside. For anyone who wants to avoid the tedious paperwork task, we recommend that you take our assistance to save your time and effort.
After the application process is complete, the government of the UAE will issue a license for your company. You’ll need some standard documents to apply for the license, regardless of your location. These documents include the filled application form, copies of the shareholder’s passport, and the like. Additionally, some free zones may ask for your business plan.
Once you get your paperwork back, you will have all the necessary documentation to open a corporate bank account. In the UAE, you have several international and local banks, including Abu Dhabi Commercial Bank, Emirates NBD, Commercial Bank of Dubai, Emirates Islamic, Noor Bank, Ajman Bank, Mashreq, and RAKBANK. Some global names include CitiBank, HSBC, and Barclays. You can choose the one that meets your requirements. Before you can trade in the UAE, you must have your bank account.
Your bank account opening will take around two to four weeks. The bank will need to know about your total deposits, primary business area(s), anticipated currency volume, leading suppliers and customers, and revenue levels. After receiving your paperwork from the government, you have all the necessary documentation for opening your account in any bank you want.
Applying for a visa is the last step in setting up your business in the UAE. Apart from your own permits, you can apply for dependents and staff visas in some free zones. The number of visas you can submit depends on your selected free zone. If you want to get a visa for your child, maid, spouse, or driver, check if your free zone allows it and whether you and the one you want to sponsor meet the entry criteria for the visa. Assuming you have completed this criterion, the process follows some simple steps, including an entry permit, status adjustment, medical fitness test, Emirates ID registration, and visa stamping.
That’s it! With the simple steps above, you’re ready to set up your business in the UAE. You can trust Idea BiZone to assist you through the process and take you through every step.
Mainland businesses in the UAE are registered by the Department of Economic Development, DED; mainland businesses can be set up in 7 different places in the UAE Emirates. These Emirates include Ajman, Dubai, Sharjah, Fujairah, Umm Al-Quwain, Abu Dhabi, and Ras Al Khaimah. Businesses operating in the UAE mainland are free to function and trade within the boundaries of UAE, in the free zones in UAE, and internationally.
The companies in the free zone are registered by the free zone authority operating in the area. Free zone companies can conduct business within free zones and outside the UAE.
Starting a UAE business-free zone offers certain advantages like lesser regulation and the costs being more affordable in contrast to licenses of UAE mainland.
Offshore companies in the UAE can operate outside the primary setup location or registered jurisdiction. Hence, the UAE offshore companies aren’t permitted to trade in the UAE. with offshore companies, and UAE residency visas aren’t offered to the owners.
Based on the activities you’re going to conduct, the trade license you need to start your UAE business will vary. Each type of license covers a different number of activities; for example, a mainland trade license, by default, allows ten activities selected from the same category. More activities can later be added with a separate fee. The main types of trade licenses in the UAE are as follows.
Idea BiZone will help you at every step of setting up your business in the UAE mainland.
Our business consultancy services also cover business setup in the free zones of the UAE. If you want to set up your business in UAE free zone, you can trust Idea BiZone for assistance.
We at Idea BiZone, also have great experience helping investors set up offshore businesses in the UAE. We promise to assist you through the entire process.
Regardless of which type of license you need, Idea BiZone is here to help you get your consent through a completely hassle-free process, guiding you along the way.
The time it will take to set up your UAE business will vary based on necessary approvals from the authorities and jurisdiction.
Since starting a business here as a foreigner may be daunting, it’s best to take advice. Here are some things you need to know about before you start.
You will come up with different service providers who offer different packages and costs. Sometimes the expenses that seem low may include hidden charges. We recommend that you see the details and seek professional advice to avoid problems.
You need to have a corporate bank account for conducting your UAE business. This will take energy and time.
Businesses need to present financial audits, but some free zones won’t require it. The mandatory VAT registration threshold is 375,000 AED. Companies exceeding taxable imports and supplies must register for VAT and TRN numbers. Businesses with imports and supplies below the required registration threshold but above 187,500 AED can also register voluntarily.
All businesses in the UAE must give their annual economic substance reports, and failing to meet these deadlines can lead to penalties up to AED 50,000.
If you hire employees for your new UAE business, you must hand in a valid work visa and run the necessary security checks. The business owner also needs to give health insurance to his/her employees. The labor laws have undergone some changes, and you need to be aware of them. Idea BiZone offers you their reliable support. In this case, trust us to handle things for you.
All businesses in the UAE need to have a working premise, except the free zones that offer virtual office facilities. The options for work premises include co-working spaces, offices, studios, warehouses, factories, and showrooms.
With the recent UAE regulation changes, you don’t need local sponsors for mainland business. Nevertheless, some business activities still require you to have a local Emirati sponsor. The local sponsor will act as a silent partner but owns 51% of the company shares. Free zone businesses are free from the need for local sponsorship.
With our years of expertise, you can trust Idea BiZone to acquaint you with setting up your business in the UAE., and we are here to help!
All expatriates working within the UAE are required to have a valid UAE visa. You can use a business set up to apply for a residency visa if you’re an investor.
Once you receive your establishment card and trade license, you should apply for the entry permit. Then change your visa status to resident from visitor. This may be done from outside of inside the country.
Next, you will need to take the medical tests and apply for the Emirates ID, which is necessary for all the residents of the UAE. The final step is the stamping of your visa. After your visa is stamped, you can get your dependent’s resident visas.
If you’re starting a business in the UAE as a foreigner, here are some of the key benefits you get.
To start a business for smooth running in the UAE, here are some of the steps and basics you should know about.
The following documents are required: whether you submit the work to the DED directly or through a business agent.
After reading this article, you know that it is not something impossible to set up a business in UAE. So, it’s time to choose the right business type and field to make your future bright. If you find any business setup process challenging, feel free to contact us for guidance.
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