UAE (United Arab Emirates), also known as Emirates, is world famous for the lavishness of its constructions, malls and tall skyscrapers. Studies show that doing business in 2013 put Dubai on the twenty third position for ease of doing the business as compared to previous years.
However, these days, the United Arab Emirates is attracting many business ventures in sectors such as Finance Industries, Manufacturing, IT Service, Media, etc. The notes insinuate that it is the Dubai Free Trade Zones that have encouraged many people to start their business quickly with 100% ownership to the proprietor.
To run a Business in Dubai one must consider the different type of Ventures, Trade License, Partnership, among many others before opening a company in Dubai. If it is preferable to run a business through one’s own funds because getting loans for a business is not an option and neither is the investing community developing in this country.
In general Words, a foreign investor can successfully set up a business in UAE mainland by typically registering himself in one of the UAE Free Trade Zones.
Here are Some Pointers to Keep in Mind Before Starting a Business in Dubai:
You should consider it if want to run your business solo or you need a local partner to run your business. The local partner should know about the market and the buying behaviour. If you want to set up a business in the UAE, you have to choose a Local partner who can own 51% share in the business. If you want to run the business by yourself, you have to set up a business in the Dubai Free Trade Zones without involving a local partner. However, in this case, you need to do the market research on your own.
Investment for Setting up the Business
In UAE, the tax-free nature acts like a magnet to attract different companies who flock to Dubai to open their business. However, the fees for setting up a business in the Dubai Free Trade Zones are a little on the higher side but it also helps save on custom tax duty and many other taxes. This applies to both partnerships and sole proprietors.
Trade License for the Business
Trade license is one of the most important aspects of starting a business in the UAE. One thing that should be kept in mind is the cost and the extra charges involved while applying for a New Trade License. You should factor this cost in your budget while planning to start a business in UAE.