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7 frequently asked questions on starting a business in the UAE

7 frequently asked questions on starting a business in the UAE
December 24, 2018 Simon Hopes

Starting a business in the United Arab Emirates offers business investors a great opportunity to earn profits, make use of the great infrastructure, economic stability and investor-friendly business standards. The process of setting up a business in UAE can become expensive without the right supervision, proficiency and associates. Moreover, businessmen and entrepreneurs have several questions and doubts that need to be answered on time.

We have listed below the 7 most frequently asked questions on starting a business in the UAE:

  1. What kind of business can I start in the UAE?

In the UAE there are mainly three types of company that can formulated. Mainland business, a business in a free zone area or an offshore business. For a business setup in UAE mainland, you need a local sponsor, who will own part of your business only on papers. In a free zone jurisdiction, you do not need a local sponsor but can function only within a limited geographical region where the company has been registered. Whereas UAE offshores allow you to safeguard your wealth and assets, but you cannot trade in the UAE and will only get a certificate of incorporation and not a trade license.

  1. What are the procedures to establish a limited liability company in Mainland?

A limited liability company is one of the most common and preferred company structures that businessmen consider while setting up a business in Dubai. To establish a limited liability company in the UAE you need to reserve a trade name and obtain preliminary approvals. You also need to get a memorandum of association of the company and submit the lease contract and other necessary documents to the Department of Economic Development – the authority that manages business activities in the Emirates.

  1. What are the advantages of a business setup in UAE mainland?

There are multiple advantages of starting a business in UAE mainland. However, the most important advantage is that as a mainland UAE company you are allowed to do business with any country and trade freely even within the country – unlike free zones and offshores. You also get the access to affordable rental office space as you are not geographically-limited. You can also take advantage of the affordable business setup packages.

  1. What is a Free Zone?

Free Zones are areas designated for international businesses, which need 100% foreign ownership. Companies in each free zone can trade only within the same free zone and nowhere else in UAE.

  1. What are the advantages of a business setup in UAE Free Zones?

As a free zone company, you can have full ownership of your company and get access to free-hold property anywhere in Dubai. You are exempted from paying taxes and import or export duties, but this depends from free zone to free zone. Each free zone is managed by governmental or private single window authorities that create their own discerning standards for company formation in free zones.

  1. If I have a free zone business in the UAE, can I conduct trade within UAE?

No, you are not allowed to trade within the country. However, with a middle man or a distributor who has a license to do business within the country you can function. You will have a contracted documents subjects to certain conditions. If you have a company in any UAE free zone, you can trade within UAE only by partnering with a local distributor.

  1. How much time would it take to establish a company in Dubai?

Company formation in Dubai mainland could take a while if you do not have all the necessary paperwork and documentation approved by different government agencies. With the right business setup consultants, you can establish your business in UAE in just three days. But it also depends on the company type and the jurisdiction you would like to start a business. Also, company formation in UAE free zones can take anywhere between 3-10 days.

More questions?

If you feel all your questions where not answered book a free business setup consultation with Shuraa Business Setup. Dubai-based Shuraa Business Setup consultancy can help you company formation and everything related UAE mainland business setup.

Shuraa Business Setup services include company registration, company trade licensing, PRO services and labour and immigration services in Dubai. We help in mainland LLC company formation in Dubai as well as Free zone company formation in Dubai, Fujairah, Ajman, Ras-al Khaimah and across the UAE. We have registered over 20,000 Dubai company and are counting.

Our business setup company in Dubai believes in providing simple, quick, low-cost and risk-free solutions to our clients making their security our top priority. We provide personalized and hassle-free business set-up solutions at competitive prices and in a time-bound manner.

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