Setting up a business in the UAE: key rules, requirements and tips

Posted at 05:32h in Economics by

The United Arab Emirates (UAE) is not just a country of luxury and futuristic architecture, but also a dynamically developing business center that attracts entrepreneurs from all over the world. Starting a business here opens the doors to global markets, a stable economy and a favorable investment environment. Find out more information on the https://insight-dubai.ae/ about this issue. Let’s consider its main nuances.

Main forms of doing business

Setting up an enterprise in the main territory of the UAE makes it possible to conduct business operations throughout the country, including the local market. Most commercial areas require the participation of a local partner (a UAE citizen) with a shareholding of at least 51%. However, due to recent changes in legislation, for a number of industries, foreign investors can own a full package of shares.

Registering a company in a free economic zone (FEZ) guarantees full foreign ownership, no profit taxation and corporate tax, as well as a simplified registration process. Each FEZ has its own specialization (for example, media, IT, finance), and the company’s area of activity must correspond to the specifics of the selected zone. Opening a representative office allows a foreign company to establish a branch in the UAE to carry out specific activities, but it cannot carry out independent commercial activities.

Basic rules and stages of registration

There are some rules for opening a business in the UAE. They are as follows:

  1. First of all, determine in which jurisdiction you want to register your business – in the main territory or within the free economic zone. This choice should be based on your business strategy, the characteristics of the target consumer group and the intended areas of activity.
  2. Think of a name for your company. It is important that it is original and complies with the rules established in the UAE.
  3. Formulate a clear description of the scope of your company’s activities. This will be a decisive factor in choosing a suitable free zone and determining the required permits.
  4. In accordance with the nature of your activity, you will need to obtain the appropriate license, be it trading, manufacturing, professional or tourism.

The list of required documentation may vary, but as a rule, it includes: identity cards of the founders, a detailed business plan, a lease agreement for the premises (if necessary), and incorporation papers. The registration procedure itself involves submitting documents to authorized government agencies, obtaining a trade license, and opening an account in a banking institution. The UAE offers unique opportunities for business development. Following the rules and applying reasonable advice, you can successfully launch and develop your business in this promising country!