Entrepreneurs from all over the world are attracted to set up a business in the UAE. Why so? It is because of the 0% tax policy. Apart from that, the overall cost of setting up a business in the UAE is comparatively lesser than in other countries.
While most entrepreneurs grab their chance to set up a company in the UAE, some are just lacking behind in finding out how to start a business in UAE. UAE is in the process of shifting its economic focus from the gas and oil industry which is why it is offering a lot of inducements to existing as well as new businesses.
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Why choose UAE for setting up a company?
The United Arab Emirates (UAE) has the most diversified economy in the Gulf Cooperation Council. It was once known to rely merely on the export of oil. However, its economy now needs tourism and other businesses for its economic growth.
Due to this, the United Arab Emirates has implied market-friendly economic policies, fostered foreign investment, sustained development, research and innovation to become one of the most popular business hubs in the world, in the last 3 decades.
The best part is that the UAE offers the latest infrastructure, flexible government norms, high-quality services, classy amenities and a suitable environment for trade to all kinds of businesses, no matter which country they belong to.
Types of companies you can set up in the UAE
There are 3 types of companies that you can set up in the UAE, i.e, Free zone company, Mainland company and Offshore Company. The first decision that you have to make in order to set up a business is to decide whether you want to choose the free zone, mainland or offshore.
If you choose the mainland, then you will be able to trade with the local market directly. You will not need an agent. Moreover, you will be able to set up your business anywhere in the United Arab Emirates.
However, If you are looking for the most cost-effective and beneficial approach, then you must opt for a free zone company. Free zones offer quick setup options and an affordable package for a trading license in the UAE.
Simple steps to set up a company in UAE
Setting up a company in the UAE sounds difficult but does not have a very complicated process. What one needs to do is just be vigilant and seek the right advice.
You can follow the following steps to set up a company in UAE conveniently:
- Choose your business activities.
The very first step that you need to take when you decide to set up a company in the UAE is to decide what your business activities are. You must ensure that your chosen trading activities are following the list of the activities mentioned by the Department of Economic Development.
- Select a company name.
The second important step is to choose a company name. This may seem to be a very easy step but it is not. While deciding a name for your company in UAE you must keep in mind a strict set of conventions. Your company name must not have any blasphemous or offensive language.
Moreover, if you are naming your company after yourself, you should avoid abbreviations. You should also avoid names of famous organizations. Once you have made sure your selected company name is abiding by the UAE conventions, you must check if it is available to get registered.
- Apply for your License.
Once all the formalities are done, it’s time for the most essential step that is to apply for your trade license. There are different types of licenses. You must analyze which category your business activities fall into. For example, if you have a manufacturing company, then you would need an industrial license.
You will have to provide some basic details and documentation which would include an application form, the passport copy of the owner and two passport size photos.
- Make your visa application.
You will need a visa for yourself and your employees to work in the UAE. The visa process is not complicated if you get the right guidance. Once you become a UAE business license holder, you will be able to sponsor others for their visas as well. It could be your employees, spouse, children, parents and housekeepers.
However, the number of visas that you can sponsor would depend on the size of your business.
Conclusion
UAE is a good option to set up your company. You can choose among the 7 emirates that include Sharjah, Abu Dhabi, Umm al-Quwain, Fujairah, Ajman, Ras al-Khaimah and Dubai. The most attractive and populous city of UAE is Dubai which makes the DAFZA Dubai Free Zone business setup an insightful and futuristic option.
