Business Setup Services in Dubai or Anywhere Over in UAE
UAE is a country with unending opportunities. The government policies and laws are all favourable for a perfect business location which is why it is one of the leading business hubs in the world. UAE has grown tremendously over the past years and has succeeded in attracting more investors to the country in spite of a global pandemic.
The government has come up with many exciting amendments and new laws to help and support businesses of all kinds over the years especially during 2020. With the advancement and adaptation of technology in different fields, UAE has become one of the strongest and most suitable places for business. UAE, when compared to the other Middle East countries, has a very diverse population and with its new and advanced strategies, the country has had more expatriates coming in to indulge in the luxury of UAE.
If one is planning to do business in UAE, it is crucial to know about the jurisdictions to set up the company and the laws of the country. There are 3 main jurisdictions in UAE to form a company:
Mainland companies are onshore companies that are licensed by the Department of Economic Development (DED). A company registered in the UAE mainland can do business in the local market and even outside UAE without any restrictions. There are numerous business types that can be set up in the mainland.
- Limited Liability Company (LLC)
- Joint Venture
- Public and Private Joint Stock Company
- Civil Company
- Branch of a local or GCC company
- Branch of a foreign and free zone company
- Sole Establishment
Setting up business in the UAE mainland comes with the advantages of doing business with the government bodies and trading with other businesses on the mainland. They can also set up an office anywhere in UAE and has a greater scope for business.
Free Zones provide 100% business ownership and functions on their own regulations of framework. There are more than 40 free zones in UAE that offers special tax and customs, which makes it one of the most preferred locations for business. The benefits of setting up a business in the UAE free zone are; it provides the luxury of 100% foreign ownership, 100% direct tax free and even 100% repatriation of profit and capital. Free zones have great infrastructures providing the perfect work atmosphere and even have the availability of skilled and experienced labour. They neither impose personal income taxes nor have any currency restrictions.
Offshore companies are the ones established in a different jurisdiction with its parent corporation based in another country. It may not be a physical entity, but is a registered company which serves the purpose of legally minimizing tax payments. Offshore companies offer the benefits of tax saving, asset protection, privacy and confidentiality and even security of property rights to the investors.
UAE has favourable laws for foreign direct investments and invites foreign investors to set up businesses in Dubai or anywhere in the country. The government had recently come up with an amendment to the company law allowing expatriates 100% ownership. Earlier only free zones offered 100% ownership to foreign investors but now this has been extended to the mainland businesses as well. You no longer require a sponsor in the country to set up a business.
In order to do business in UAE, it is mandatory to have a trade license which is issued by the UAE Economic Department. There are three types of licenses in UAE:
- Commercial license: Every business that involves in trading activities falls under the commercial license category.
- Professional license: Any professional offering services of their field; craftsmen and artisans are included in the professional license.
- Industrial license: It covers all the industrial and manufacturing activities.
It is illegal for any business entity to function without a trade license and it must be renewed every year.
UAE was a country that solely depended on the crude oil, but today even as the prices of crude oil went down the country was able to withstand it and even a global pandemic. The incentives provided by the country during such tough times to its people, especially for the business world is beyond expectations. UAE has a business-friendly environment and has the most suitable infrastructure for business. The government policies are yet another reason why UAE is the most suitable place to set up a business.
For a person who is new to UAE, the rules and regulations of setting up business can seem quite complex and hectic. This is where a business consultant steps in. Business Consultants are updated about all the rules and regulations of setting up business in UAE ad they will make your work easier. Jumeira Consultants has a team of experienced professionals who can assist you from advising the best location to setup your business to commencing the operations.