Important Questions To Ask before Opening A Company in the UAE

When you’ve made up your mind to establish a company in the UAE it’s 100% because of it’s deep wells in all industry sectors from real estates, trading, aviation, tourism and hence proves to be a worldwide hub for business and investments. United Arab Emirates gives an impressive 79% business freedom rating, entrepreneurs and investors possess every reason to start their business in this country. 

Before you make a move here are few questions you should have and answers you need to know to take a step further. 

1. What are the benefits of setting up a business in the UAE and why?

United Arab Emirates enjoys a peaceful environment for business and trading treaties that allows businesses to thrive with a vibrant economy. Presence of Free Zones in the UAE, great tax regime, proper legal structure, advanced infrastructure and much more. The country is also a home to top banking institutions which means you won't have to worry about banking and financial assistance. 

1. Confused about Mainland, Free Zone Company, Free Zone Establishment, Offshore Company?

The UAE includes 7 Emirates and more than 40 free zones, these free zones are special trade areas with unique tax, additional regulations and customs for foregin investors. In a Free Zone investors are eligible to register their company as FZE or FZC or an offshore company. 

Investors are also encouraged to establish company in the mainland, where the company is registered under Dubai Department of Economic Developement. If you wish to have maximum freedom and flexibility for your business this could be the right choice.

UAE Offshore company is perfect for investors who do not want to trade in the UAE, if you intend to operate your business outside of its registered jurisdiction or the location from its original formation, offshore company is the legal business entity for you. 

1. Which Free Zone is better for my business?

Before choosing a free zone in the UAE, you need to know 3 simple questions- Will you do business inside the UAE? What is the precise business activity? What kind of UAE presence are you looking for your business? However, all free zones in the UAE have similar characteristics that is 100% ownership, no corporate tax for companies registered in the free zone. 

Free zones in the UAE is constructed in a way to provide better synergy for businesses and companies and hence there are dedicated free zones according to your business activity. 

1. What is the UAE Tax policy?

Taxation policy for domestic and foreign businesses is quite favourable, the government does not levy any taxes on the income of people or companies. However, companies in the oil and gas industry are subjected to 50-55 percent tax rate. 

Companies that are newly registered have to pay a one-time charge of access to the register of business owners, ten percent of annual and warehouse lease, and 5 percent of annual wages paid to workers.

1. What structure should I choose for my business

If you plan on expanding your existing business you don’t really need to go through the hassle of establishing a FZE, FZC or offshore company, you only need to register for a branch company. Although, there are different types of companies that can be established such as partnerships, FZE, FZC or LLC. 

1. Share capital requirements

Share capital is the amount of money you and your partners take up for the business, an average and minimum share capital required is 500,000 AED is some Dubai Free Zones. However, few free zones in the UAE do not require share capital. 

1. Do you need to permanently reallocate to the UAE?

Once your company is established in the UAE you don't have to permanently move here you can run and setup your own business from any part of the world. However, you can appoint a manager to get the work done for you. 

1. What kind of business activities are allowed?

UAE encourages you to have a variety of business activities which can be established in the Free Zones or in the Mainland. There is no restriction on any sort of business activities. 

Apart from these important questions there are other certain regulations related to setting up business in the UAE which might come into picture, here’s where you will be needing us to guide you with the right legal advice. 

As keen as I am to help you with your business plan, I would also like to schedule a Zoom Meeting. Please provide me with a convenient time to get on a call with you to assist you and have a clear picture for your new upcoming venture, if there are any queries or clarifications with regards to the same we can clear them out and discuss on this platform on the next steps to be taken. Contact -00971527797111 ( watsapp ) or Write Us email [email protected] .