A Complete Guide to Set Up a Business in the UAE
Today is the best time for business formation in the UAE! Well, that’s actually true even in the last decades, but 2021 shows particularly encouraging signs. Barely seven days go by in UAE that’s free of any announcement or giving out of another large-scale project. In fact, UAE’s growth forecasts suggest that it is a bandwagon worthy of jumping on at present.
IMF ranks UAE as leading economic development within the Arabian Gulf since 2017. This statement, supported by the impressive growth of previous years, attracted an ever-growing number of trades to the UAE. So, if you’re planning to set up a business in the UAE, today’s the right time. Why? UAE company formation, especially in Dubai, is relatively quick and straightforward in its process with solid incentives when opening businesses in the free zones.
Of course, there are many business types in UAE, such as offshore or onshore. Still, free zones exist exceptionally standard with foreign business persons because of the incentives offered. These perks include 0% personal and corporation taxes, full company ownership and repatriation of profits and capital, no currency limits, and 100% tax exemption on products coming in and going out of the UAE. So, if you’re tempted to open a free zone business in the UAE, here’s a step-by-step guide.
Choose your trade activity.
Irrespective of business type in UAE, the whole process structurally appears roughly similar. It all begins with the desire to start a company that can generate income. This is vital because making a business cash flow design is more essential than the actual fulfillment of registering when you set up a business in the UAE.
After all, you have to identify your income sources and amount. Once you’re clear about that, company formation is your next step. Always remember, sales is more focal when you set up a business in the UAE. Also, the type of your company has an impact on which zones you should open your business.
For example, certain free zones allow specific activity types, such as medical, media, or transport. Aside from this restriction, it often is logical to open a business close to those in a similar sector. Then, there, too, are transport links. If your firm relies much on export or import, perhaps, you will prefer choosing a free zone situated close to a port or airport.
Setting up your business pursuit will undoubtedly offer you direction and help to do away with some options at the onset. You do not need to break down your business, though, as it’s possible to hold multiple business pursuits listed under a single trade license.
Choose your business name.
When you set up a business in the UAE, this is when you need a pre-approved company name. On top of this, you need to submit the required filled-up documents concerning your company activity and the personal information of the stakeholders or ultimate legatees.
Sometimes, there is the requirement to go through a process of short-term approval because of specific business activities or registry requirements. If this happens to you, the Registrar proceeds to the registration phase. Upon reviewing the documents you submitted at the pre-approval stage and conducting the necessary security and background investigations, the Registrar releases corporate papers of the business.
Once all business documents are issued, you may visit the relevant authority to collect the complete set of documents needed to set up a business in the UAE. Note that UAE has specific strict naming rules, so before committing to a business name, ensure it conforms.
If you’re unsure of this, a business set-up specialist can help you save much effort and time by checking whether your preferred name passes the criteria. If it fails, they can always help you decide on a name that complies with the rules.
Finalize all incorporation formalities.
When you set up a business in the UAE, you’ll have to carry out an application representing your chosen business activity and name. This entails submitting passport copies of the shareholders to the related government authorities. Certain free zones require additional papers, such as the business plan, if not a Non-Objection Certificate (NOC).
This paperwork stage does not need to be very taxing if you get expert assistance. Your business consultant can guide you on paperwork requirements and even help you finalize them.
Get your license.
This exists as the most straightforward stage of all. When your application to set up a business in the UAE has been sorted out, the government issues your company license. Suppose you have engaged a business consultant for the process. In that case, they usually notify their clients when documents can already be collected.
Open your company bank account.
Once your papers are issued, you can now open your business bank account. In UAE, you have many banks, international and local, to choose from. Examples include Abu Dhabi Commercial Bank, Emirates NBD, HSBC, Commercial Bank of Dubai, and Citibank. You can approach your chosen bank personally or have your business consultant arrange appointments with some institutions to facilitate selecting the best option.
Process your visa.
This is the final stage when you set up a business in the UAE. Besides getting your personal visa, countless free zones let you apply for your staff and dependents, depending on the free zone you’re setting up your business. Still, it’s best to get expert advice when you plan to get visas for your spouse, child, driver, maid, or business worker.
In this way, you can ensure its possibility in your preferred free zone, as well as your meeting the visa criteria. If everything is in order, the process stays with easy stages, namely, entry permit, the adjustment in the status, medical fitness exam, registering for an Emirates ID, and stamping of the visa.
Make it simple with HAM.
It is simple to set up a business in the UAE because of the accommodating free zone conditions. Still, with the exact experienced support, this process takes just some weeks. Well, yes, I’ve somehow simplified the entire process since each step could throw up snags that could upset the inexperienced hopeful business person.
In reality, that’s where HAM comes into the picture. A tiny home business knowledge can make a massive difference in the process. So, why not let HAM guide you all the way? They can act as your go-between with UAE authorities and even spot potential problems ahead of time. And even if you may want to do company formation outside of the free zone, HAM can still help you.