As a known business hub, the UAE is becoming increasingly popular and attractive to businesses around the world. Although the United Arab Emirates is an oil-rich country, the United Arab Emirates has diversified its economy into various sectors to become a global center of business, trade and finance. Foreign investors have five options for setting up business in UAE:
Acquiring/Investing in an Existing Local Entity
This option allows foreign investors to acquire or invest in existing companies or businesses in the UAE.
Operating Business through an Agent/Distributor
This option allows foreign companies to involve agents/distributors in the distribution and sale of their products or provide services for a fee using the agent’s or distributor’s local market connections. Foreign companies do not need to be present in the United Arab Emirates.
Trading from Overseas
This option allows foreign investors to trade in the UAE from their home country without establishing a physical presence in the UAE.
Establishing a Joint Venture (JV)
JVs allow foreign investors to participate in capital and to participate in the operations and management of their companies in the United Arab Emirates. More, local partners can contribute through technical skills or local connections and reputations or even financially.
Setting up a Local UAE Entity
This option allows foreign investors to establish free zone or land (continental) companies in the UAE. Whether to start a business on land or in a free zone depends on the type of business the company is going to do in the UAE and the location of its customers.
Onshore/Mainland Business Setup
Foreign investors who wish to do business in the free zone UAE can form a Limited Liability Company (LLC) or branch/representative office. The main advantages of subjects on land are:
- Fewer limitations in doing business
- There is no location limit for the place of business while in the bank.
Free Zone Business Setup
Foreign investors can choose to establish a 100% foreign company or branch in one of the many free zones in the UAE. Free Zone companies operate within the respective Free Zones and outside the UAE, but not in the local market. Each free zone is managed by its regulator and the licensing authority in each free zone issues free zone licenses.
Offshore Entity/International Business Companies
Companies that do not intend to do business in the UAE (whether onshore or within the free zone) can form an offshore company under the offshore regulatory system. Offshore companies are not allowed to trade with the UAE and cannot open a bank account or obtain a tax domicile certificate in the UAE. However, some of the main advantages of an offshore company include:
- Doing business internationally
- No foreign ownership limit
- Shareholders or directors are not required to reside in the UAE
- You don’t need an office space or physical building in UAE
- Offshore companies
Why Entrepreneurs Choose UAE for Setting Up Business?
The United Arab Emirates is one of the most business-friendly countries in the world. Over the years it has grown into a financial force with different industries. Business in the UAE is thriving with a stable political system and a business-friendly tax system. Entrepreneurs also get liberal trade restrictions and strong capital flows. As a result, it is becoming an increasingly popular investment option and the best choice for expats.
In addition, with 80% of the UAE population born overseas, there are plenty of opportunities for foreign investment. It is very easy to start a business in the Emirates as it has less document verification and most of it is in English. In addition, it is relatively easier for foreigners to do business in the United Arab Emirates than in many other countries. The local UAE government promotes foreign investment and start-ups in various ways. Offers long-term investment visas. Starting a business in the United Arab Emirates also helps expatriates obtain residence visas for themselves and their family members.
Setting up a business in the UAE is a free zone that is very popular with overseas investors. This is because free zone companies enjoy privileges such as 100% foreign ownership and more. In addition, you also enjoy 100% repatriation of capital and profits, no need for local sponsors, and exemptions from corporate taxes, income taxes, sales taxes, and import and export taxes. In addition, the tariffs are low and there are no trade barriers.
However, for to a business-friendly environment, the UAE also offers year-round sunshine, world-class facilities. A vibrant and prosperous community, and a prestigious cosmopolitan life that attracts thousands of immigrants from around the world to live and do business in the UAE.
So, if you are an immigrant who wants to start a business in UAE, this is the best time to join. It is best to seek professional help from a business creation advisor with relevant field experience. In addition, you can ensure that the local UAE business website provides effective information on the current market movements. You can ask local retailers to keep you updated on the latest developments in the UAE business community.