Are you dreaming about setting up a business in United Arab Emirates but backing off because you got a little clue about the process? Take no stress as this blog will help you with your dream plan.
Setting up a business in UAE is considered one of the easiest processes and involves fewer preparations. With proper information and tools, one can set up their dream business in no time.
The first point to consider when you plan the business set up is to select the right place. UAE offers people to set up in two different zones, Free Zone and the Mainland. It is two different zones and each has its differences and rules. The most prime difference is the ownership nature, liability extent, UAE national as the agents or partners, trade nature, and economic benefits.
To set the business in the Mainland of UAE, ensure you follow the following process.
Key Government Entities
The first step is to contact the Economic Department to get the Initial Approval and to register your trade name. This process can be completed by visiting the office directly or through eServices. It is one of the most important steps as only after you get approval from the Economic Department, you can proceed further.
But in the case of PrJSC – private joint-stock company, the Ministry of Economy must be reached first and should get his approval.
To start a business in the Mainland, you must be clear as to how you would begin the process and from where to start. The first step usually involves the investment of capital, license payment and the visas of the employees. The business setting cost mostly depends on,
- The activity of the nature and the requirement of license for the industrial, commercial or service-oriented business.
- The company’s legal form, whether it is for a company, establishment of a company’s branch.
It is very important in the Mainland to determine the business type. Only the UAE nationals may setup companies in Mainland UAE or they must at least be a sponsor. It has many benefits like business flexibility as they can do it in any parts of UAE, no limitations on Visas, no taxes and many more.
If you do not want to involve a UAE national as a partner, you can still setup business in UAE in Free Zone. Here, you are eligible for 100% ownership. But it comes with few restrictions like trade or employments do not work in the same way as in the case of Mainland and also the freedom that can be experienced in the Mainland.
Free Zone has other benefits like
- No corporate tax, personal income tax, export/import tax
- Easy license procedure and start-up
- 100% repatriation of profits and capital.