How to provide services in the UAE
Uncover the powerful opportunities provided by the Emirates to build a highly successful business, not only in the Gulf region’s fastest growing market but also internationally
Successful entry for consumer or business services into this market needs a little prior preparation. You need to understand the relevant legislation and regulations, and validate your business concept against what the market needs. You must also check out what authorizations, permits and licenses are required to operate your chosen line of business. UAE legislation provides for a special incorporation process for professional services companies. It demands that business owners and employees possess certain educational or professional qualifications.
The most in-demand activities in the UAE’s service sector
Services for the public
Cleaning, laundries, designers, beauty salons, repair and craft workshops, car services
Services for business
Translation bureau, bookkeeping, secretarial services, data and call center activities
Medicine and healthcare
Medical centers, private hospitals, clinics, laboratories, pharmaceutical consultancies
Sports and education
Preschool, secondary and higher education, courses, training, sports clubs
Catering and agriculture
Activities of restaurants, cafes, fast food outlets, farms, crop production, catering
Recreation and entertainment
Organizing events, galleries, entertainment centers, water parks, circuses
Transport and logistics
Courier activities, car sharing, limousine service, yacht rental, storage and packaging services
Management and consulting
Management, tax and personnel consulting, specialized recommendations, project management
Information Technology
Information security, network setup, office equipment maintenance, software development
How to start a service business in the UAE
Choosing a working business model
Analyzing the competitive business environment and business development strategies is crucial because business models that work successfully in other countries often flop in the UAE.
Choosing a place of incorporation
The right jurisdiction for business incorporation depends on the location of your target audience. To provide services in the domestic market of the UAE, one should open a local company.
Choosing a license and obtaining approvals
The need for the correct business licenses, permits and authorizations must be carefully assessed and should be viewed together with the relevant laws and regulations.
Providing quality support to the company
The final stage will be the selection of a service company that provides high-quality administrative, legal and PRO support, accounting and tax accounting, and will also provide support in opening bank accounts.
Obtaining permits for the provision of services
There may be a further step in some cases after obtaining a license to operate. The regulatory bodies for certain business activities require proof that employees possess relevant qualifications before issuing permits.
Obtaining a license and company incorporation
Once you have successfully received all required approvals from the regulatory departments, you need to fulfill the legal requirements for incorporating the type of legal entity you have chosen and register its business address.
SORP expert solutions for organizing a business in the field of services in the UAE
Business model preparation
We will select a suitable license and suggest the type of legal entity
Business incorporation
Fast incorporation through close collaboration with the licensing authorities
Outsourcing of core business processes
Administrative, tax, accounting, PRO and legal support from SORP Group
Dubai business address
Office rental in SORP business center for accommodation and licensing procedures
Opening bank accounts
Using our close cooperation with banks throughout the UAE, assistance to pass KYC
Service agent
Local agent that represents the company’s interests with state agencies and other authorities
Benefits of operating a Service Business in the United Arab Emirates
Equal competition
Equal business opportunities for both foreign and local entrepreneurs with equal treatment in law
Ease of hiring
Availability of qualified personnel in the market and the ability to attract foreign personnel
Investment security
State support and international agreements on mutual protection of investments
Confidentiality
Strict confidentiality guarantees anonymity of beneficiaries' data during incorporation and doing business in the UAE
Preferential taxation
No corporate taxes or personal income tax means earnings and dividends are tax free. 5% VAT on some domestic categories.
Financial freedom
No currency control; simplified bank KYC procedure for transactions in the local currency.
Success Factors for Service Business in the UAE
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Favorable tax climate
The absence of corporate tax and one of the lowest VAT rates in the world, coupled with a high standard of living and consumer demand, create an ideal business environment in the Emirates market for the development of service business, attracting hundreds of thousands of foreign investors and entrepreneurs to the country every year.
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Developed banking system
By September 2020, the assets of the UAE banking sector amounted to AED 3,252 billion, which is 7.6% more than in September 2019. There are 48 banks in the country, 27 of which are foreign. They offer a wide range of products and services, low rates, leasing and credit programs, the latest digital technologies, mobile and online banking.
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High purchasing power
The standard of living and the high level of per capita income ($ 43,103 in 2020) in the United Arab Emirates ensures high consumption and a constant demand for quality services in the domestic market. The UAE is included in the TOP 10 countries in the world in terms of welfare.
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Governmental support
The UAE government has initiated more than 30 strategies to support and develop the service sector in the country. By 2030, these programs will be implemented: The National Program for Advanced Training of Employees and the Quality of Services; Strategy for the development of the Innovation and IT sector; a number of initiatives to digitize services; Strategies for education, medicine, financial services and tourism.
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Low level of bureaucracy
Transparency of procedures, reduction in bureaucratic delays thanks to active digitalization and successful implementation of blockchain technology in the system for providing public services. In particular, the Blockchain Business Platform (UBRP) was created in Dubai in 2019, simplifying the processes of company incorporation and obtaining licenses.
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Promising domestic market
The volume of the service sector in the UAE in 2020 amounted to $ 74 billion. The population and number of consumers are constantly growing due to immigration and tourist flows counted in the millions. All of which contributes to steady market growth. Dubai is one of the ten most attractive cities in the world. In 2020 alone, it was visited by 16.73 million tourists from 233 countries, who spent about $ 40 billion in it.
SORP service package for professional business support in the UAE
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Business hypothesis confirmation
We will look at and assess relevant aspects of law, help you choose the best place for incorporation, and assist with licenses, permits and approvals.
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Comprehensive business analysis
We will perform market and competitive research. We will select areas for doing business in the UAE and implement an effective strategy.
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Consulting support
We ensure your project passes through all the steps to starting a business. We build relationships with state bodies and deal with them on your behalf.
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International tax planning
Individual solutions to improve the efficiency of tax optimization schemes for international business based on UAE legislation.
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Tax residency registration
Assistance in obtaining a tax domicile certificate as proof of compliance with the requirements of belonging to UAE jurisdiction.
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Confirmation of economic presence in the UAE
Proving that you conducti business operations at the registered address of your business and that it belongs under UAE jurisdiction.
Years of SORP experience is a guarantee of the success of your business in the UAE
SORP Group is a leading consulting group of companies that provides a full range of services for incorporation, support and business management in the UAE and abroad. We have an impeccable reputation, many opportunities and significant assets:
Start a business in a super profitable niche
SORP Group experts will help evaluate your business idea and provide comprehensive support in organizing your project in the UAE.
Today you can take the first step towards creating a successful business!