Set up business in UAE
The population of the UAE continues to make up the majority of expatriates, it has emerged as one of the Middle East region’s biggest destinations for corporates, businessmen and investors. The government of the United Arab Emirates extends pragmatic, forward-thinking policies and various incentives to attract foreign investors to invest in the oil-rich region. The governing authorities have further streamlined the procedures for setting up a company in the UAE. Such relaxed policies and modern technology encourage the development of both start-ups and large companies. Another reason why the Emirates is a fertile ground for enterprises, particularly the city of Dubai, is that taxation is minimal in all but three sectors: oil, banking and tobacco production. So, if you are now looking to invest here after living in the UAE for many years, then you will face no problems in terms of setting up your business, even if you are relatively new to the region.
Type:
The type of commercial license you need in the UAE will be decided by this measure. You can require commercial, technical or industrial licenses, depending on the basis of your operations. You can select from over a number of 2100 activities at the Department of Economic Development (DED) in Dubai. However, when choosing those activities (such as food trade, jewelry trade, veterinary activities, and more), holding in kind requires additional approvals from various government agencies.
Legal:
Similar to the form of company and venue, there are rules about your company’s legal framework. For instance, if you intend to start a legal consulting business, then this can only be done as a branch or as a stand-alone company. A sole proprietor is not allowed to take up this operation in the UAE. In addition, each free zone has its own constraints about the structure of the business.
Free Zone or Mainland?
Free Zone:
If you are a foreign national and would like to have full ownership of your company, choose a UAE Free Zone License. A free zone company gives you 100% ownership of your firm, without having to sponsor or partner with a UAE national. These firms can only conduct business and trade with firms outside the UAE. If you want to operate locally, however, it is mandatory to have a local sponsor who will have 51 percent of the shares in the company.
Mainland:
When planning to setup company in Mainland, company may be set up by foreign nationals on the mainland. For this, you are allowed by law to nominate a UAE citizen to serve as a local sponsor, owning a 51% share of the business for the commercial form of license and company. If the operation of the company is to provide consulting or services, then a professional license is required if the company is 100% owned by a foreign expat and the UAE national becomes only a company service agent (sponsor).
Steps to set up business in the Mainland
Step 1: Select trade name
Step 2: Apply for the pre-approval
Step 3: Documents Clearing
Step 4: Select your work premises
Step 5: Final Submission of Documents
In compliance with the local government, a number of documentation and legal actions are required when setting up your business in the UAE. If you need additional assistance to set up a company in the United Arab Emirates, then this is where Avyanco Business Consultancy comes into the picture. Exclusive to and company or office set-up, we have fully personalized business set up and registration solutions. To ease the business set-up needs, our team of experts consists of business set-up consultants, experienced attorneys, PRO executives, offshore staff and operations personnel. Our foundation is focused on partnerships and supported by continuing creativity and confidence and productivity. Rest assured, when you sit back and wait for the company set up to be done, Team Avyanco will manage all formalities and legalities.
