5 Questions to Ask Before Starting a Business in UAE
Are you a seasoned entrepreneur trying to expand your business to flourish it to unparalleled levels? Or are you a novice freelancer trying to test new waters? What better place other than the Global Business hub, Dubai, can you imagine flourishing your business?
Starting a business with all your investment needs a prolonged decision-making process backed by expert guidance and mentoring. And, naturally, your head gets puzzled with several questions for which answers don’t seem too straight away!
CIG, got you covered with its expertise over company formation services in Dubai! With years of experience in business setup consulting and guiding several entrepreneurs in UAE in realising their dreams and supporting their business journey, CIG is well aware of the questionnaire that pops up in every entrepreneur brainstorming session!
The most frequently asked questions are:
1.What is the benefit of starting a business in Dubai?
As we know, Middle Eastern countries have a lot of business opportunities to utilise, but nothing beats Dubai. It is because Dubai comes across as one of the most peaceful and tranquil communities in the entire Middle East compared to its counterparts like Iran and Iraq, which are always war-prone areas.
With many financial institutions with favorable policies in Dubai, your business tends to thrive masterly. Roads, ports, communication lines, other amenities are wholesome in the Dubai mainlands offering vast opportunities for a diverse business to catch up.
As we know, UAE consists of seven Emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Ras Al Khaimah, Fujairah, and Umm Al Quwain. And each Emirate has its own share of free zones, which are special trade areas with distinct tax, regulations, and other trade policies tailored to attract foreign direct investment. You may have inhibitions regarding where exactly you should start your business?
2.Where should I start my business in UAE?
Are you about to start your business in a certain zone? You can start either an FZC or FZE. Now how are they different? An FZE can be begun and owned by one individual. In contrast, an FZC needs at least two owners. In addition, free zone entities permit 100 percent foreign ownership, no taxes, and can hire from the local workforce.
But it comes with a downside that we can only trade within the free zone. This could be avoided by having an offshore company with no restriction regarding trading perimeters, provided you have the exact license agreement. This comes as a handy suggestion for all the international business tycoons trying to invest in UAE!
Soon after spotting the right place where you wish to start your business, the next step would be to find the exact regulations you need to follow to run your business smoothly. And what are they?
3. Do I need a local sponsor?
A corporation set up and licensed in Dubai must have a local sponsor to set up a business in Dubai. The Emirati, who is the sponsor, will hold 51% of the shares of a company that belongs to an individual or a group of expats.
Let’s turn over the page for some big good news coming your way in the realm of Business Setup in UAE!
Effective December 1, 2020, the United Arab Emirates (UAE) Government will allow certain foreign investors to fully own local companies without an Emirati sponsor. The rule applies to foreign investors with 51 percent shareholder rights.
After meeting all the regulations, the next big worry would be to assess the financial demands that your business would need to start functioning, and let’s see what it would be.
4. What is the minimum budget that I need to set up my business?
To establish an onshore business in Dubai, a minimum cost of Dh34,340 ($9350)is needed, including the rankings note and myriad fees. Other charges are Dh15,000 for a general trading license, plus fees of Dh10,000 to Dubai Municipality, Dh3,000 to the Ministry of Economy, and Dh1,200 to Dubai Chamber of Commerce. Contact CIG for a low-cost business setup in Dubai!
The most dreadful part of every business owner would be collecting the long document list to make things right. Let’s take a minute to go through the document checklist!
5. What documents are required?
Solely dependent on whether you are starting your UAE company as a sole individual (natural person) or if you want to expand an existing company (legal person), similar to opening a foreign branch. As an individual, it would be a bit easy on you with documents such as copies of your passport, plus your partner’s and utility bills as proof of residence.
In the case of a company or legal person, stay ready to showcase a bundle of documents, including copies of certificate of incorporation, and memorandum, and articles of association of the parent company. Don’t get troubled at the random thoughts; your agent will make it a smooth ride for you with a list of all the documents you need to provide.
Build your business worry-free in Dubai!
Selecting from over 50 Free Zones, various corporate structures, and a plethora of banking options can be overwhelming. Let CIG help you start a new business and life in Dubai to grow as you go.