How to start a business in the UAE

It is important!

The service professional business has privileges in local areas. You can appoint a local agent who does not own a share of company and can represent your interests in the government bodies of the UAE. Local company has no geography restrictions. It can apply for contracts with large state and private entities. The geography of the company incorporated in FEZ is limited to the international market and territory of this FEZ.

1

Choosing a working business model It is important to adapt the business model to the realities of the local market. Sometimes you need to change the format to work effectively: you can create online business or organize a service with home visits. When you are choosing a commercial area, you should take into account permeability of the area, target audience and ways to promote services. If you don’t understand particularities of the country, you should contact experts to enter the UAE market successfully.

2

Choosing geography of activities It is advantageous to establish online business in the FEZ, you can focus on consumers in the Free Economic Zone. Your company can work only on the territory of its Free Economic Zone and international market. There are no geography restrictions for a company established at the local market, such company could apply for contracts with large state and private entities.

3

Choosing legal form and type of activity The company's capabilities and list of providing services depend on the legal form and type of activity.

4

Obtaining additional permits and licenses You should obtain additional permits from state bodies for some licenses. You may need specialized personnel with a legalized diploma and additional confirmation of competencies (certification, courses) for providing professional activities. You should assign a local sponsor/agent and rent an office to obtain a license.

5

Entering the market and first steps You need to choose a service company that can take over administrative services, select qualified personnel and get visas for it, develop document templates, help to open bank accounts and register in the tax service, organize accounting and tax accounting.

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The production business in the UAE has strong government support. Products manufactured in the UAE have zero customs duties for exporting. You should not pay customs fees for the raw materials importing and you have the right of preferential purchase foreign goods by the state, if these goods meet a high quality standard.

1

Preliminary analysis and choosing the place of incorporation It is important to choose the area for production: ready unit or you need to build it. What electrical power is required and how to dispose the waste. These factors determine the territory for location of production or renting a finished unit.

2

Obtaining preliminary permission to establish production Our experts can collect all necessary documents at this stage. They can create a project description and receive preliminary permission to establish production.

3

Obtaining additional permissions You should obtain permissions of the Municipality, Ministry of Defense and Ministry of Economics for local companies. You should obtain a certificate (Environment, HealthandSafety) for companies in the FEZ. You need additional documents from state bodies for some types of licenses. For example, you need a permission from the Ministry of Health for medicines production. If you want to build a plant, you need a building permit.

4

Obtaining license The competent authority issues a production license when you obtained all required permits.

5

Entering the market and first steps You need to choose a service company that can take over administrative services, select qualified personnel and get visas for it, develop document templates, help to open bank accounts and register in the tax service, organize accounting and tax accounting.

It is important!

There are zero customs and tax fees for re-exporting goods in the UAE. International business is exempt from taxes. Despite this, the company can receive a tax number for work with counterparties.

1

Preliminary analysis You should analyze all details of legislation with a help of experts. You should be sure that your business would satisfy its ultimate goal - obtaining tax benefits or the benefits of trade agreements between the UAE and other countries.

2

Choosing the geography of activities The place of company incorporation determines servicing in foreign banks and obtaining trade finance, availability of necessary warehouses and logistics convenience.

3

Choosing legal form and type of activity Legal form and type of activity determine the opportunities of your company a list of goods, which you can sell.

4

Obtaining additional permits and licenses You should obtain additional permits from state bodies for some licenses. You should assign a local sponsor/agent and rent an office to obtain a license.

5

Entering the market and first steps РџYou need to choose a service company that can take over administrative services, select qualified personnel and get visas for it, develop document templates, help to open bank accounts and register in the tax service, organize accounting and tax accounting.

It is important!

The UAE has a simple scheme for obtaining complex service licenses for international activities. These activities includes financial, telecommunications, insurance, educational, travel, logistics, transportation and engineering services.

1

Preliminary analysis You should analyze all details of legislation with a help of experts. You should be sure that your business would satisfy its ultimate goal - obtaining tax benefits or obtaining the complex licenses to enter new markets.

2

Choosing geography of activities The place of company incorporation determines how simple are registration procedures, servicing in foreign banks, license requirements and a set of activities.

3

Choosing legal form and type of activity Legal form and type of activity determine the opportunities of your company a list of services, which you can provide.

4

Obtaining additional permits and licenses You should obtain additional permits from state bodies for some licenses. You should assign a local sponsor/agent and rent an office to obtain a license.

5

Entering the market and first steps You need to choose a service company that can take over administrative services, select qualified personnel and get visas for it, develop document templates, help to open bank accounts and register in the tax service, organize accounting and tax accounting.

It is important!

The UAE is a unique jurisdiction, there are legal tools to minimize taxation and reorganize a business under de-offshoring conditions. A company from the UAE receives a protection guarantee of shareholders personal data, you can own a business anonymously and organize a control center in the country. Beneficiaries can apply for tax residency.

Numerous agreements on avoidance of double taxation and protection of mutual investments provide a strong tax advantage for withdrawal of dividends, interest and royalties.

1

Preliminary analysis When you establish a holding, it is important to analyze all subtleties of legislation of all involved jurisdictions: conditions of agreements on avoidance of double taxation, existence of agreements on the mutual investments protection, features of beneficiary taxation in the country.

2

Creating efficient operating model You should develop optimal structure for management and financing of subsidiaries, analyze opportunities for reducing tax rates for your group activities, develop a scheme for migration of capital inside your group of companies.

3

Choose legal form and type of activity Legal form and type of activity determine schemes for capital withdrawal and financing of controlled entities.

4

Protection of the final beneficiary You should analyze the current tax status of the beneficiary, this analyze should include the existence of a law on controlled foreign companies in the country of beneficiary residence. If you change tax residency, we distribute the shares of the company ownership, we provide measures to conceal the beneficiary and to confirm the center of his vital interests in the UAE.

5

Ensuring the legitimacy of used scheme You should provide confirmation that your company has real or virtual office and technical director to confirm business management and control center.

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Starting work and first steps You need to choose a service company that can take over administrative services, select qualified personnel and get visas for it, develop document templates, help to open bank accounts and register in the tax service, organize accounting and tax accounting.