- April 8, 2017
- Posted by: DBS
- Category: Dubai Business Services
setting up a business Dubai
It is one of the prime destinations for multinational companies to set up their business base and serves as the highly growing market in Africa, Middle East, and South Asia. United Arab Emirates (UAE) is seen as a prime place for the investors worldwide as it is the economic and geographical nucleus.
The United Arab Emirates ‘uttermost commercial center is Dubai. UAE has invested profoundly in various sections like manufacturing, logistics, retail, travel & tourism, information technology, healthcare and education and a strong focus on green technologies to attract international business. In Dubai, there is no capital or income tax. The Absence of foreign exchange control and trade barriers or quotas make business setup Dubai a lucrative process.
Facts that make setting up a business in the UAE stress-free are:
- The economical wage structure
- Vast workforce
- Very low handling charge
- World class infrastructure
Business setup in the UAE
- A foreign company planning Company formation in UAE needs to set up a representative office or appoint a commercial agent to sell their product.
- UAE free zone is a worthy option for foreign companies to conduct their activities.
- This UAE free zone is designated to augment the business activity within an emirate. It is governed by its own rules and regulations.
- There are nearly 40 Free Zones in the UAE, and many are under construction.
- There are no ownership restrictions for foreign companies and they are governed by an autonomous Free Zone Authority (FZA).
Commercial Companies Law (CCL) is code for foreign ownership restrictions. It requires that UAE nationals or their entirely possessed companies hold a minimum of 51% of shares of all the companies established in the UAE.
Commercial Companies Law (CCL) provides for the formation of the following business entities for foreign investors: Limited Liability Companies (LLC), Joint Stock companies (JSC), and branch offices of foreign companies. CCL does not apply to companies that come in Free Zones in the UAE.
It is important to explore the opportunities before establishing your company in the UAE. The complete growth of your company can be hindered by making a few wrong decisions.
Few point should be kept in mind while setting up a business in UAE to make the best structure for your business.
- The exact nature of your business
- Plans to expand your business.
- Capital to invest
- Approach to attract investors in future
- Tax implication of structure
- Company risk and liability
- Mixture of Companies and personnel
- Audits and other requirements