If you are thinking for setting up a business in the UAE, you should know that the path is not “a knife on butter”. There are many aspects to consider. Here are the top questions that you need to resolve before thinking of giving business setup in the UAE in 2021.
Where do I establish a company in the UAE?
The UAE is home to 7 different Emirates. There are two main considerations when deciding which Emirate is best suited for your business: market demand and legal requirements. Each Emirate has different regulatory requirements, entry costs, Business License, and start-up fees for businesses.
What legal structure will be the best?
There are three legal structures for foreign companies in the UAE – an Establishment, a Limited Liability Company or LLC, a Branch of a foreign company. Rules, regulations, and fees vary widely and will be based on the type and nature of your business.
Do Foreign Investors Need a Local Sponsor?
If you choose to establish your business in a Free Zone, then a separate local sponsor/partner is not required. The Free Zone becomes your local sponsor and all government and property related matters will have to go through it.
Do different types of businesses require special permits?
Yes, definitely. The various legal forms of companies have specific requirements. Sole proprietorships, Limited Liability Companies and Branches of local and foreign companies must meet certain specifications.
How much time do I need?
This really depends on the type of business you want to establish and the industry you want to enter. On average, it is recommended that you spend more than two months setting up a business. It allows time to complete documentation, regulatory approvals, and any necessary legislation and document translation.
Is it useful to ask for local advice?
Finding the right local advice can save you a great deal of time, money and stress. Any agency specialized in this niche can provide you with advice on the most efficient and profitable way to establish business in the UAE. You can’t register a business without first renting an address of some kind.