A Complete Guide for Investors to Start your Business in UAE
It is relatively easy to start a business in the UAE, and many expatriates and foreign companies are coming forward to take advantage of the various opportunities provided by the government. Here is a complete guide for investors will tell everything about starting a business in the UAE and company formation rules.
Who can start a business in Dubai or other parts of the UAE?
Any expatriate can have a business setup in Dubai in partnership with a local UAE national that owns about 51% of the company. There is a provision for sole proprietorship business but reserved for the professional category. The Emirati partner may just be a partner on paper and may not be involved in the day-to-day running of the business.
The legal structure of a business
Sole Proprietorship
Here the company is owned 100% by the foreign investor. The person can have complete control over operations and profits. However, sole ownership is allowed only to UAE or GCC nationals in the industrial and commercial sectors.
Civil company
Professionals such as doctors, lawyers, accountants can open a civil company as a 100% owner but require a local UAE national who would not be a partner but associated as a Service Agent. The role of the service agent would be to render necessary services to the civil company. A local UAE national is required as a shareholder with 51% of the shareholding.
Limited Liability Company (LLC)
In an LLC, partners can range from two to fifty, and each shareholder profits according to their shareholding. A UAE local sponsor must have a minimum of 51 % of the shareholding.
Foreign Company Branch
A foreign company can establish a branch in Dubai or anywhere in the UAE. Here, the company is 100% owned by the parent company. However, any import of goods must be routed through a local trading firm owned by an Emirati.
Free Zone Company Formation in Dubai, UAE
If you plan to start a Free zone company formation in Dubai, you are on the right track. A free trade zone, another name for a free zone, is a special economic zone that gives many advantages to businesses, including tax exemptions and concessions in regulatory fees. Free zone jurisdictions have regulations and are overseen by a government regulatory body called the Free Zone Authority.
What is a Free Zone Company?
It’s a special jurisdiction which allows 100% full foreign ownership under a particular Emirate. They are exempt from dealing with customs authorities and the Ministry of the economy. They only have to deal with the authorities responsible for a specific free zone. A foreign investor can also have 100 percent ownership in companies here. A free zone company can operate only within the free zone and not in the Mainland.
Benefits of Freezone Business Setup
- Allows 100 percent ownership in a company. There is no mandatory requirement for a local sponsor or service agent.
- Waiver of Corporate taxes
- Personal, export, and import taxes come exempted in the free zone business setup.
- Long term lease options up to 25 years available to investors at attractive terms
- Easy and faster recruitment process of workforce
- Fast registration and commencement of business in the Free zone compare to other areas.
- Easy access to housing, immigration, labor, and legal services.
- 100% free repatriation of funds.
How to stay ahead with free zone company formation in Dubai?
In order to set up a business in a free zone, an investor has to
- Firstly, Choose a name for the business.
- Apply for a business license.
- Select an office space.
- Get pre-approvals, register the company and get a license.
Setting up an offshore company
Setting up an offshore company in the UAE has several benefits. Incorporating an offshore company is a straightforward process. The advantages are
- Shareholder’s identity kept confidential by law
- Allows 100% foreign ownership
- Allows registered business address in Dubai
- A 100 % tax-free and business-friendly environment
- Moreover, No restrictions on foreign exchange remittance or trade barriers
Setting up a Mainland company
There are many benefits for setting up a mainland company, such as
- More than 1000 business activities to choose from
- Freedom to trade in any part of the UAE
- Freedom to choose any business location in Dubai
- Easy Visa processing for employees
- No foreign exchange restrictions on repatriation
- 100% ownership
Licenses and permits
Most businesses can get business or trade licenses from the Department of Economic Development (DED) or the local free zone of any Emirates. However, specific business activities may require specialized licenses. For example, manufacturing companies need the Ministry of finance and industry approval. For pharmaceutical and medical companies, the Ministry of health gives the licenses.
About Business Link Consultancy
However, With Dubai offering the maximum number of Free zones, it would be good to hire a business consultant like Business Link UAE. We are one of the most experienced business Setup companies in the UAE serving business clients since 1999. By Get in touch with us, know the complete guide for investors to start your business in the UAE.
