The Most Important Questions to Ask before Starting your Business in the UAE
The UAE is one of the best locations around the world for business setup. And this is for multiple reasons such as its strategic location, economic stability, and vast workforce. In addition, the country keeps exerting efforts in order to ease the process of business set up for foreign investors. But when one decides to start his business in the UAE, he must consider a number of questions first and get some credible information.
Below we present you the most important questions to ask yourself before starting your business in the UAE and the answers to them.
What are the benefits of starting a business in the UAE?
Setting up a business in the UAE provides you with numerous benefits. This includes 0% income taxes, 0% corporate taxes, wide variety of business activities, large workforce, absence of currency restrictions and easy set up process and legal procedures.
Where in the UAE?
The UAE consists of seven emirates; Abu Dhabi, Dubai, Ajman, Fujairah, Ras al Khaimah, Sharjah, and Umm al-Quwain. All the seven emirates share the same federal structure but have different market conditions and separate legal requirements. Your decision of where to start your business should be based on your target market and the pros and cons of the emirate’s legal requirements for you. You should ask yourself questions like where is your target market? What are the costs required for setting your business in this emirate? And how do the laws of this emirate benefit you? And how do the laws in this emirate affect your business?
Do I need a local sponsor?
To set up your business in a mainland area in the UAE, you have to find a local sponsor who would share 51% of your business while you would share 49%. But after the recent UAE cabinet’s meeting, 100% ownership of business was announced to foreign investors and there will be no requirements for sponsorship by the end of 2018.
What is the minimum budget that I need to set up my business?
The budget required for setting up a business in the UAE depends on the type of the business and the area you are planning to set it up at. For example, if you set up your company in a free zone with a virtual office space, then the budget you need will range between 20,000 and 50,000 AED. If you are setting an onshore company, the minimum budget would be 100,000. You must also consider other costs such as license fees, visa application fees and set up and rent costs.
What are the documents required for setting up a business?
Required documents may vary depending on the type of business you are starting. For example, if you are starting an individual company you will be required to present: copies of your passports, copies of your partners’ passports, and utility bills of residence. In case of a foreign branch company, you will be required to present other documents such as copies of incorporation, memorandum and articles of association of the parent document. It is always better to have an agent assisting you while setting up your business and to inform you with all the required documents you need.
These are the most important questions to consider before setting up your business in the UAE. It is always recommended to hire an agent to assist you with all the legal procedures and ease the process for you. Global Link provides all business related services starting from preparing your required documents, issuing your legal documents and growing your business.