The United Arab Emirates: The Basic Know How’s Before Establishing a Business

Seven emirates make up the United Arab Emirates (UAE), including Dubai, Abu Dhabi, Sharjah, Fujairah, Ras Al-Khaimah, Umm Al-Quwain, and Ajman. Because they all have their own laws and rules, conducting business can occasionally be difficult.

Despite this, the UAE is becoming one of the most desirable location to setup business.

Here are a few top reasons why UAE is a top pick compared to other countries:

1. The economy of Dubai has seen a major boost after the Dubai Expo

2. The real estate market of the UAE has seen a major bounce back post covid-19

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3. The Foreign Direct Investments has seen a major rise in last 5 years

4. The Corporate Friendly Laws and the newly introduced Corporate Tax is aimed to benefit businesses and let them work smoothly

5. The adaptation to global working standards for a smooth operation of businesses internationally.

For companies wishing to launch or grow, the UAE is a great place, but it's imperative to conduct thorough research first. Here are the top things to be prepared for before conducting business in the UAE:

1. Setting up Business: Know the Geographical Landscapes Well

A company license, is necessary for every company operating in the nation. When creating an operational entity, you have two options:

-??Free Trade Zone

Each emirate has at least two free zones, with Dubai having more than 20. Each zone has its own set of rules and laws. Additionally, some Common Law Free Zone jurisdictions have their own courts and regulatory bodies. Companies operating in free zones are restricted in what they may do on the UAE mainland and can only conduct business there, with other free zones, or abroad.

-?Onshore Jurisdiction

The Representative Office, Branch Office, and Limited Liability Company business entities are the most prevalent types of businesses in the onshore jurisdiction (LLC). Depending on the type of business, a firm or branch may be entirely owned by foreigners. A 51 percent local UAE shareholder is needed for an LLC in addition to the allowed activities. A local service agent must deal with local authorities on behalf of a branch or representative office. You are able to conduct business anywhere in the UAE if you are based onshore.

2. Space for Office

Setting up office in UAE comprises of three major things:

i) License

ii) Legal Entity

& iii) Office Space

Numerous free zones give businesses with affordable options for office space by offering flexible desk arrangements or business centers. The requirements for a minimum office size vary from one jurisdiction to the next, and the size of the office space will be correlated with the company's visa quota or allotment.

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3. The Language Barrier

Although English is frequently used in business meetings and transactions in the UAE, Arabic is the country's official language. However, all employment-related paperwork, such as contracts and other papers as well as communications with employees, should be in Arabic when establishing in the main land. However you can easily communicate in English Language while working in Free zones.

?4. Adapting the Culture

Islamic customs are intertwined with the local culture. The tone of business communication is extremely professional, and politeness is highly valued. The people of the UAE are typically kind and welcoming, and their society is considered to be among the safest in the world. Foreigners are free to practice their own faith, but they must also treat their hosts with the same level of respect.

5. Work Permit & Visas

To live and work in the UAE, all international employees need a work permit or residence permit. This implies it's crucial to pay close attention to make sure you adhere to all rules established by the Ministry of Human Resources & Emiratization as well as the General Directorate of Residence and Foreigners Affairs.

Contact Xpert Advisory today

UAE offers the most prosperous environment for launching firms, with first-rate facilities, a beneficial tax structure, less government restrictions, and other conveniences that makes running a company smooth.

With Xpert Advisory, establishing a business in the United Arab Emirates is an easy, seamless process.

Call us at +971 50 395 9730?to get in touch. Or mail us at [email protected]