This article is going to shade more light on the four do’s and don’t on how to start a business in UAE. So carefully read the content line by line.
Are you thinking of starting a profitable business in UAE? Do you need steps to starting a successful business in the United Arab Emirates? Are you considering relocating to the UAE but don’t know how to kickstart a business there?
Whatever it is in respect to venturing into the world of entrepreneurs in the United Arab Emirates, read on and let this article be your guide.
Informatively, the appealing market trends and happenings in the United Arab Emirates has recently proved that there are numerous opportunities from which start-up businesses can grow.
What’s more, UAE is one of the very few countries located at the centre of the world.
It has strategic location which aid and facilitate trade and businesses with over 65% of the world.
Importance of doing business in UAE
Since you’re here for guidance on how to start a business in UAE, you may want to consider the following importance of doing business in this part of the world.
- There is enough required infrastructure for running a smooth business;
- Their is no any bill or corporate taxes on legal entities from the profit they accrued;
- Total absence of income tax for companies’ employees or the business owners;
- There are efficient rights for the foreign entrepreneurs or business owners;
- UAE forgives foreign participants 100% of its share capital with no provisions or mandatory use of its national in their company;
- Exemption of companies from paying tax and other corporate fees;
- 100% absence of customs duties and other related fees.
- Protection of right and interests of the foreign national and the business owners, and many more.
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The United Arab Emirates As Centre for International Business
The United Arab Emirates is at the crossroad of trade and business route. From Asia to the East and to the Western Europe, it has seven independent but autonomous subjects under its care.
Essence, these Emirates have their own special economic features that every entrepreneur will always wanted for their business success.
Premise on the above, the UAE is the center of international commerce, hub of banking, hall of manufacturing and modern logistics and many more.
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Therefore, as a result of its advantageous location, this other part of the world had risen to the position of international business center.
However, as beautiful as this country is in term of starting a business, there are some laws, laid down principles and policies that every wannabe business owner must know before setting up business.
These rules and principles are as follows:
4 ways to starting a successful business in the United Arab Emirates.
1. Register and Acquire the Necessary License.
Obviously, the UAE gives room for anybody around the world to come over to its territory and start any profitable business that interest them.
So far it is a legitimate business that is not against any law in force there!
That is to say, this magnanimous business opportunity is not meant for the well established business owners or International recognized companies alone.
New start-ups and wannabe entrepreneurs are welcome, too. So far they have had all the criteria to do so.
However, you can’t set up any business in this centre for international business without having your start-up business registered and a recognized working permit/license.
Thus, doing this alone in a country you know little or nothing about their laws may be quite difficult.
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Hence, you can visit startup consultants who are familiar with anything that has to do with starting or running a business in UAE.
In addition, this business startup consultant will work on how your business venture is registered and how you’ll get your working license too.
Even, they’ll work you through getting your Visa validated, opening an account with the local financial institution there and many other things.
2. Get Your Start-up Business a Local Sponsor.
Another vital point you need to note on how to start a business in UAE (the one that pays) is to look for a reliable local sponsor.
The numbers of free trade zones on the United Arab Emirates can never be overemphasized.
All their free trade zones were established so as to attract foreign investors as well as business owners.
Hence, they metamorphose into one of the major reasons for the rise of UAE into the international business center.
Plus, they became a great incentive that is bringing in more large and medium scale international companies into the land.
As a result of this, any non-resident who’s willing to start a business in Arab Emirates mainland, such individual or company must have its own local sponsor to serve as a liaison.
This is so because, the mainland is out of the free zone. One can only run a business with the local and international market in the free trade zone.
So, the local partner must be an Emirates resident who’s willing and ready to hold 51% of the business establishment shares.
In line with the above, endeavor to find a local sponsor that you can trust while starting a business in UAE.
After all, they’ll will be holding a substantial share of your business start-up.
This local sponsorer or company will be requesting for annual retainer fee. It’s up to you to negotiate and finalize the deal.
Lastly, make sure the deal is in written form, sealed and attested to in any Emirates court. This is very important for reference and future purpose.
3. Free Zones Should Be Your Primary Target.
It is very important you note before starting a business in UAE that as we have it in other countries, so it is in the United Arab Emirates too.
The country may be a center for commerce and hub of profitable business ventures, but be enlightened that not all locations there are okay for business.
You just have to believe this bitter truth, since you’re here to learning how to start a business in UAE without problem. It’s important we say it.
Don’t be surprised, there are close to 40 zones in Arab Emirates and not all of them is being operated in accordance with the enabling laws.
So for your interest and if you really want to learn how to start a business in UAE, it is advisable you establish your business in a free zone area.
This will provide 100% certified ownership of your business establishment to you.
Not limited to that, you’ll be exempted for paying tax on any goods or products or imports and exports out of the country.
Plus, there are no restrictions or whatsoever on the volume, amount and nature of your investment funds.
You can serve as the owner of some other companies and participate in investment projects in UAE and overseas, too.
However, there’s no need to get a local sponsor to operate with in free trade zones. You can kickstart your business without any problem.
4. Know and Understand the UAE Custom and Tradition.
This is the most important aspect that you need to know and understand before starting a business in UAE.
Of course, the United Arab Emirates is an Islamic peninsular and all it laws, customs and tradition are in conformity with the rules of Sharia.
Thus, it is expected of you to have known and mastered the ways of life there prior to doing any business in UAE.
As you are learning how to start a business in UAE now, it’s ideal you learn and know what is acceptable and what’s not before you set up your business.
More so, the UAE government strongly frown at businesses like selling and importing of weapons, pork, cigarettes and host of others.
The government of UAE also expect you to modestly dress in public places. Remember, ignorance of the law, is not and will never be an excuse.
So if the nature of the market is one of the major reasons while you want to start a business in UAE, then go ahead. The market is blissful.
Hence, make sure you follow the above guidelines on how to start a successful and profitable business in UAE.
Seriously, it is very important if you really want the business to be a huge success.
I hope this guide on how to start a business in UAE is very detailed and helpful. Let me know your view the the comment box.