Over the last few years, the United Arab Emirates (UAE) has become one of the topmost sought after destinations for entrepreneurs and investors across the globe. Home to its incredible location, strong economy, advantageous tax regime and copious business-friendly government regulations, The UAE is a veritable startup money pot for both startups and multinational corporations.
Now is the ideal moment to relocate and start business in UAE. NewBusinessWorld’s guide for UAE LaunchPad; Be that first-timer entrepreneur, or veteran business owner who is looking to expand to the region; this guide delves deeper into the reason why the UAE is the perfect place to initiate and next-level-ify your next venture!
An Overview of the UAE: A Global Business Destination
With its location at the nexus of Europe, Asia and Africa and extreme connectivity to global markets, the UAE stands unique. Infrastructure on par with any western country, high-speed digital networks, and free trade zones combined has helped the country secure top position in most World Bank’s “Ease of Doing Business” ratings.
Key highlights:
- Strategic Position: Immediate exposure to more than 2 billion consumers on 3 continents.
- Top-tier infrastructure: including advanced ports, airports, and commercial hubs.
- Conscious, experienced seamans: A full talent pool of people from different parts of the world.
- Political and economic stability: robust legal frameworks as well as investment protection laws.
Why Start a Business in the UAE?
Here are the top reasons entrepreneurs are flocking to the UAE:
1. 0% Personal and Corporate Tax (in Many Cases)
The UAE offers one of the most business-friendly tax systems in the world. Most businesses (especially in the free zones) pay no corporate or personal income tax at all (even though 0% does not mean zero so it’s still anemic). Despite the fact that a new federal 9% corporate tax has just been introduced for mainland companies (from above a de minimis threshold) the UAE is still on the top three most tax-efficient jurisdictions.
2. 100% Foreign Ownership
Before, foreign investors had to give up a local UAE partner (51% local owner) to own you as well. Due to recent amendments in the Commercial Companies Law, many mainland businesses can now enjoy full foreign ownership.This redress has substantially lowered the hurdles faced by international entrepreneurs.
3. Free Zones = Total Control and Easy Setup
The UAE is home to more than 40 free zones, each catering to specific industries and sectors. These zones give you several benefits:
- 100% ownership
- 100% repatriation of profits
- No import/export duties
- Quick company setup (some within 24 hours)
Having said that, SPC Free Zone (Sharjah Publishing City Free Zone) is becoming the rage because of cost effective, flexible and multi activity licensing. When you are thinking of establishing a business in the UAE, SPC free zone is the perfect starting point to begin.
4. Residency Visas for Entrepreneurs and Employees
In the UAE, company setup gives your family and yourself permission to sponsor residence visas (including employee visas for your servants too).
You can also get stable visas for investors and skilled people (Golden visa of 10 years) in addition to short term ones.
Popular Business Sectors Thriving in the UAE
Diversified economy: The economy of the UAE means that you have the opportunity to work in several fields. A few of sectors to watch for are:
- E-Commerce and Digital Services: Online commerce in an Internet Federated like UAE is a bustling market due to high penetration of both internet & mobile.
- Tourism & Hospitality: Dubai and Abu Dhabi, along with numerous other Emirate, constantly receive millions of tourists who drive travel services and hotels.
- ED Training — a booming market of encouraging sectors because of the rising populace and federal government interest in innovation.
- Technology and Startups: Leading innovation hubs like Dubai Internet City and Abu Dhabi’s Hub71 attract tech-driven enterprises.
- Real Estate & Construction: The sector is still expanding with mega projects ongoing and an unlimited demand for housing and commercial spaces.
The Company Formation Process: Step-by-Step
A Brief Overview of How to Set Up Your Business in the United Arab Emirates:
Step 1: Choose Your Business Activity
To begin with, you will have to figure out what business you want to pursue. This will decide upon the license to be acquired (commercial, industrial, professional etc.).
Step 2: Select a Jurisdiction
Decide whether you want to operate in:
- Mainland: Greater market access but subject to local laws.
- Free Zone: Perfect for full foreign ownership, quick business setup, and tailored industry advantages.
- Offshore: For international business operations with no physical presence.
Step 3: Register Your Company Name
Get a trade name that conforms to the naming conventions in the UAE. Don’t use names that are vulgar or same as any other trademark.
Step 4: Apply for a Business License
Submit the license application and related documents:
- Passport copies
- Business plan (in some zones)
- Initial approvals
- Proof of address
Step 5: Open a Corporate Bank Account
Once your company is registered in the UAE, you can proceed to open a corporate bank account. There are plenty of local and international banks that offer startup-friendly services.
Step 6: Apply for Visas
For your business type and location, you may be able to get visas for yourself and your employees. Some free zones provide a free visa package with the office space or virtual address.
Final Thoughts
The UAE ticks all the right boxes if you have a chance of ever wanting to start business in UAE, expand internationally or invest in a fast growing geography. The infrastructure is up and running. The law is on your side. The market is yours.
Thus, SPC Free Zone is your most suitable partner when it comes to starting business in the UAE. SPCFZ gives you the freedom with cost effective packages, best verified directors and speedy setup, not to mention the same massive amount of eligible business activities.
Begin your entrepreneurial journey today and get unlocked a business which you deserve.
