An Open and Dynamic Economy
UAE has one of the most vibrant and dynamic economies in the world with open policies to allow growth of new ventures. AT Kearney ranks the UAE as one of the top 20 places in the world for global service business. UAE is also ranked in the top 30 on the World Economic Forum’s “most-networked countries”—ahead of all other Arab nations, as well as other countries like Spain, Italy, Turkey, and India.
It even scores high rankings from Transparency International and the World Bank’s Worldwide Governance Indicators for control of corruption, ranking in the top quarter of the least corrupt countries in the world. Therefore, it is definitely a sound business investment to start a company in the UAE.
How do you start up a business in Dubai?
There are two ways to start a business in Dubai. One is through a joint partnership and the other route, by setting it up within a Free Zone.
To start a company that wants to sell products or services freely in Dubai and the other Emirates, you need to make sure that a minimum of 51 percent of the business is owned by an Emirati (UAE national).
For foreigners who desire to establish a business in Dubai, going through the Free Trade Zones (FTZs) is a smart option. There are a number of FTZs in all of the 7 Emirates of the UAE and the government is constantly investing in the development of new economic zones.
There are a lot of plus-points to operating within a Free Zone. A few of the major advantages are:<>/p
- Total foreign ownership of your enterprise
- Complete exemption on import and export tax
- Full repatriation of capital and profits
- No corporate taxes for 15 years, renewable for an additional 15 years
- No personal income taxes
- English documentation with minimal paperwork
- Help with labour recruitment and support services such as sponsorship and housing.
Company Formation procedure in the Free Zone
- Select the location depending on the type of business you wish to operate and the facilities offered by each Free Zone.
- Determine licence type. Depending on your business activities, choose the type of licence; General trading license, Consultancy/Service license, Industrial license, or Commercial license.
- Find the different costs involved in starting company in the Free Zone. This includes the setup costs, first year costs and the yearly renewal costs. Watch out for hidden costs that can vary from Free Zone to Free Zone.
- Submit the application along with the required legal documents such as passport and visa copies, business plans, bank statements, and No-Objection. You may also have to secure approvals from government bodies such as the Immigration Department, Environment Department and Ministry of Health.
- Once you have received the approvals, you will be required to pay the fees, following which you will be granted the Free Zone Trade License.
The best and easiest way to get your company up and running in the Free Zone is to approach an authorised company registration agent. They will be able to take care of all the legal hassles involved in the process and advise you on the right steps to take at the right time.