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’sservice sector
Servicesfor the public
Cleaning, laundries, designers, beautysalons, repair and craft workshops, car services
Translation bureau, bookkeeping,secretarial services, data and call center activities
Medical centers, private hospitals,clinics, laboratories, pharmaceutical consultancies
Preschool, secondary and highereducation, courses, training, sports clubs
Activities of restaurants, cafes, fastfood outlets, farms, crop production, catering
Organizing events, galleries,entertainment centers, water parks, circuses
Courier activities, car sharing, limousineservice, yacht rental, storage and packaging services
Management, tax and personnel consulting,specialized recommendations, project management
Information security, network setup,office equipment maintenance, software development
How to start a service business in the UAE
Choosing a workingbusiness model
Analyzing the competitive businessenvironment and business development strategies is crucial because business models that work successfully in other countries often flop in the UAE.
Choosing a placeof incorporation
The right jurisdiction for businessincorporation 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 andobtaining approvals
The need for the correct businesslicenses, permits and authorizations must be carefully assessed and should be viewed together with the relevant laws and regulations.
Providing quality supportto the company
The final stage will be the selectionof 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 forthe provision of services
There may be a further step in somecases 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 andcompany incorporation
Once you have successfully received allrequired 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 businessin the field of services in the UAE
We will select a suitablelicense and suggest the type of legal entity
Fast incorporation throughclose collaboration with the licensing authorities
Outsourcing of corebusiness processes
Administrative, tax, accounting,PRO and legal support from SORP Group
Office rental in SORP businesscenter for accommodation and licensing procedures
Using our close cooperationwith banks throughout the UAE, assistance to pass KYC
Local agent that represents thecompany’s interests with state agencies and other authorities
SORP specialists will help you develop a business concept and model for organizing your activities focused on your areas of commercial activity, along with market research and competitive analysis. They will assist in licensing and incorporating a company, obtaining the necessary certificates, approvals and permits, provide consulting support at all stages of formation and doing business in the UAE.
Benefits of operating a Service Businessin the United Arab Emirates
Equal business opportunities for bothforeign and local entrepreneurs with equal treatment in law
Ease of hiring
Availability of qualified personnel in themarket and the ability to attract foreign personnel
State support and internationalagreements on mutual protection of investments
Strict confidentiality guarantees anonymityof beneficiaries' data during incorporation and doing business in the UAE
No corporate taxes or personal income taxmeans earnings and dividends are tax free. 5% VAT on some domestic categories.
No currency control; simplified bank KYCprocedure for transactions in the local currency.
The success of service companies in the Emirates market is assured by freedom of competition, as well as the growth in the number of wealthy expats and an active demand for quality services. UAE laws provide for a special incorporation process for professional services and pays attention to the control and quality of the services provided.
Success Factors for Service Business in the UAE
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.
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.
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.
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.
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.
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.
By incorporating a services sector company in the Emirates, you not only open up opportunities for successful business in the UAE but you can also legally optimize your entire international business from a prestigious jurisdiction without taxes, while retaining maximum profits. To minimize the risks of your international activities being viewed with suspicion, or even suspended, we recommend that you comply with all legal requirements to confirm your Economic Presence (ESR) in the UAE.
SORP service package for professional businesssupport in the UAE
We will look at and assess relevantaspects of law, help you choose the best place for incorporation, and assist with licenses, permits and approvals.
We will perform market andcompetitive research. We will select areas for doing business in the UAE and implement an effective strategy.
We ensure your project passesthrough all the steps to starting a business. We build relationships with state bodies and deal with them on your behalf.
Individual solutions to improve theefficiency of tax optimization schemes for international business based on UAE legislation.
Assistance in obtaining a taxdomicile certificate as proof of compliance with the requirements of belonging to UAE jurisdiction.
Confirmation ofeconomic presence in the UAE
Proving that you conducti businessoperations at the registered address of your business and that it belongs under UAE jurisdiction.
Years of SORP experience is a guarantee of thesuccess 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:
SORP offers comprehensive support for acquired companies and their shareholders: from licensing, maintaining Bank accounts to obtaining the status of a tax resident of the country
Your requirements are unique. That is why we treat every business individually to tailor the right services to achieve your priorities.
15 years of successful work
We have helped thousands of clients acquire, build and develop businesses in the UAE
Assistance in choosing a bank that is suitable for your purposes, support with bank accounts opening and passing KYC procedures (know your customer).
Start a business in asuper 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!