Are you thinking of starting a business in the UAE? Do you want to know how to start a business in the UAE? If yes, then this blog is going to be extremely helpful for you.
Starting a business in UAE might seem difficult but it is not. There are some formalities that you have to go through to start your business. Whether you are a UAE resident or a foreigner, you have to go through some legal stuff to start your business in UAE legally.
The residents are more familiar with the process and it is easier for them to start a business there. But with a little research, people from all over the world can join too.
Because of the ease of doing business in the UAE, a non-resident can also do good business. Due to the benefits, a lot of businesses are trying to expand to the UAE.
There are a ton of benefits that you get in the UAE that you can never get in any country in the world. One of the main benefits is that it is one of the biggest trading hubs in the world. Every year millions of people do business there and the number seems to increase. So it is an opportunity for you to do business or to grow your existing business.
People are mostly confused about starting a business in the UAE. So in this blog, we have discussed the step-by-step guide to starting a business in the UAE. If you are interested, keep scrolling.
What is UAE Like?
UAE is one of the most advanced places in the world. It is ranked well in the tech world. There is no old-school way of doing business in the UAE.
Almost everything is digitalized. People do business online. Even during the pandemic when the whole world was in lockdown UAE did well.
Since it is mostly digital, businesses are also adopting the digital way. Instead of doing it the old way, business owners are using performance management software to manage their businesses.
People are running their businesses completely online. So it is one of the most advanced places in the world. People from all around the world trust and come to the UAE to do business.
UAE is the best place to do Business?
UAE is one of the best places in the world because of the benefits that it provides. These are some of them:
Safety: UAE is known for its safe environment. Whether you are a resident or not, you are provided complete security. The laws of the UAE are very strict and the country has successfully created a safe environment.
Growing Nation: UAE is one of the fastest-growing economies in the world. The GDP of the UAE for the year 2020 was $349 billion. It is one of the biggest economies in the middle east.
No Tax: UAE is known for its no-tax policy for corporate and personal incomes. This is one of the main reasons people move to the UAE. A business has to work in a low or no-tax environment to make a maximum profit without getting any kind of cut to the government. Other places around the world have applied heavy taxes due to which businesses are unable to make a profit.
Steps to Start a Business in UAE
These are the steps that you need to take to start a business in the UAE.
1. Select Your Business Type
Before you start a business in UAE, you need to identify your business type. By this, I mean that you need to select a specific industry for your business. Because often people don’t check if their industry is legal or allowed in the country or not.
If your industry is related to tech then there is plenty of room for work and business. UAE is all about innovation and technology. You can do all kinds of business there as long they are legal and have an industry in the country.
2. Choose Your Dealing Area
For those who are not familiar, there are two kinds of areas in the UAE where you can do business. They are the Free Zone and the Mainland. They both have their separate benefits but the most beneficial is the Free Zone.
As the name says ‘Free’, businesses operating in the free zone, have benefits like 0% tax on corporate and personal income. 100% ownership of the company. 100% import/export tax exemption.
If you want to run your business on the mainland then you need to have a local partner to start the business. The local partner will have a majority (51%) of your company.
But you can also work in the mainland from the free zone by dealing with a company that operated in the mainland. The company will charge you for that but you will keep 100% of your company in this case.
3. Select a Name and Do the Legal Work
Names are also important to take into consideration. It is because UAE allows specific kinds of names. If your company name includes any religious stuff or anything related you are not allowed to keep that name.
If your company is under someone’s name then the person with the exact name should be your partner. So you need to consider these things before you select a name for your company in the UAE. Once the name is selected, you need to move to the paperwork. You need to complete these steps:
• Make an application with your selected company name along with your business industry/activities.
• You need to get the passports of the shareholder(if any).
• You need to get documents to run your business in the free zone.
• If you are going to start a business on the mainland, you need to meet the requirements and give with the Memorandum of Association.
• Now, contact the Economic Development Department of the UAE. You need to submit all the required documents and register your company name.
• This process will take some time and you will get your license.
• After that, you need to open a bank account in the UAE to start your business. You can open it in any local bank if you want.
• Now, you can apply for a visa and go to the UAE to do business.
Conclusion
UAE is one of the best places to do business in the world. It is ranked in the top countries when it comes to ease of doing business. People are confused about how can they start a business in the UAE. So in this blog, we have briefly discussed how to start a business in the UAE.