Starting a business in the United Arab Emirates (UAE) can be a lucrative opportunity. Here are the steps to follow to start a business in UAE:
- Choose the type of company: The first step in starting a business in UAE is to decide on the type of company. There are several options, including a limited liability company (LLC), free zone company, branch office, or representative office.
- Choose the business activity: The next step is to decide on the business activity or activities. You will need to obtain a trade license for each activity you plan to engage in.
- Choose a company name: You need to choose a name for your company that is not already in use and meets the naming conventions set by the UAE government.
- Determine the legal structure: Depending on the type of company you choose, you will need to determine the legal structure and ownership requirements. For example, an LLC requires a local sponsor or partner who owns at least 51% of the company.
- Register your company: You will need to register your company with the relevant government authorities, which will vary depending on the location and type of company.
- Obtain necessary permits and licenses: You will need to obtain permits and licenses from various government agencies, including a trade license, residency visa, and labor card.
- Open a bank account: You will need to open a bank account in UAE to conduct business transactions.
- Hire employees: If you plan to hire employees, you will need to obtain a work permit and residence visa for each employee.
- Comply with regulations: Once your business is up and running, you will need to comply with all the regulations and laws governing businesses in UAE.
Starting a business in UAE can be a complex process, and it is recommended that you seek the help of a local sponsor or a business consultant to guide you through the process.
What are the incentives ?
The UAE offers a range of incentives and benefits for businesses to encourage investment and promote economic growth. Some of the incentives available for businesses in the UAE are:
- Tax incentives: The UAE does not impose corporate or personal income taxes on businesses and individuals, except for certain industries like oil and gas and branches of foreign banks. This makes the UAE an attractive location for businesses looking to minimize their tax burden.
- Free zones: The UAE has several free zones that offer 100% foreign ownership, no corporate or income taxes, and customs duty exemptions on imports and exports.
- Investment incentives: The UAE offers investment incentives for companies in certain sectors, such as renewable energy, healthcare, and education.
- Business-friendly environment: The UAE has a business-friendly environment with streamlined business registration processes, easy access to capital, and a high level of security.
- Infrastructure support: The UAE has invested heavily in infrastructure development, including transportation, telecommunications, and energy. This provides businesses with the necessary infrastructure to operate and grow.
- Workforce incentives: The UAE provides a range of incentives for companies that employ UAE nationals, including subsidized training programs, recruitment support, and reduced visa processing fees.
These incentives can vary depending on the emirate and type of business. It is recommended to consult with a professional or a government agency to understand the available incentives and how they can be accessed.
Homasa Consultants will guide you from A to Z for establishing a successful business in UAE.
