Tag: Company formation in DWC Dubai

Reasons To Start Your Own Business In The UAE

 Reasons To Start Your Own Business In The UAE

 

Why Choose Dubai As An Investment Location?

The Dubai economy enjoys a competitive combination of cost, market and environmental advantages that create an ideal and attractive investment climate for local and expatriate businesses alike. In fact, these advantages not only rank Dubai as the Arabian Gulf’s leading multi-purpose business center and regional hub city, but they place it at the forefront of the globe’s, dynamic and emerging market economies.
Dubai, with its ancient commercial and seafaring traditions, has long been recognized as the Middle East region’s leading trading hub and has emerged as its key re-export center. In more recent years, the Emirate has become a major venue for a number of growing, profitable industries and activities .

 

Political And Economic Stability: Dubai is part of the UAE which is a low-crime and politically-stable country. Also, the UAE enjoys financial and monetary stability. Its well-developed, sophisticated banking system features ,extensive credit facilities and ample liquidity. The Emirate’s emerging capital markets are built on a basis of leading-edge technologies and sound regulatory systems. The government has a long, consistent commitment to pro-business, liberal economic policies including the protection of intellectual property rights. The UAE benefits from stable and harmonious industrial relations. Finally, there is a well defined, sound legal framework for business and a clear set of ownership rules. Foreigners are permitted ownership rights of up to 49% for limited liability companies established within the Emirate of Dubai and up to 100% for professional companies, branches and representative offices of foreign companies and free zones enterprises. All of these factors reflect positively in Dubai’s being assigned an investment grade rating for fixed income investment by Moody’s Investors Service.

 

Large, available workforce

One of the biggest struggles when starting up any new enterprise is finding the right people to work with. Dubai wins again. Its liberal and cost-effective labour laws, along with its desirable working location, make it both easy and – perhaps most importantly – rather affordable, to recruit employees from almost anywhere in the world. The ease at which expatriate workers – who make up a staggering 90% of the city’s labour force – can enter and exit the UAE also makes it easier for businesses .

Ease of starting your own business

New markets, new consumers, the rise of Internet technology – Dubai is a land of booming opportunities.

A recent survey by HSBC revealed that Dubai is ranked second-best city in the world after Singapore for expats looking to start a business. The survey highlights that the UAE’s entrepreneurial environment, job prospects and better salaries as primary factors attracting expats from across the world.

“Despite the volatility in the global economy and insecurity in job markets, the UAE’s diverse business landscape and its position as a hub in the Middle East means that it continues to be an attractive destination for expats from across the world,” .

No Taxation. 

The UAE’s economy in general is considered to be the most liberal and most diversified in the region. Dubai applies NO TAXATION policy for almost all types of business activities with exception of branches of international banks, hotels and major oil and gas companies. The following taxes are NOT applied in Dubai:

  • Personal income tax;
  • Capital gains tax;
  • Value-added tax;
  • Withholding tax;
  • Corporate tax.

Dubai Free Zones.

 Free Zone is a designated tax-free area, where foreigners can set up and do business in Dubai with full ownership and without partnering with a local emirati partner or agent. All Free Zones vary from one to another and offer licenses in various sectors. For example, there is a Free Zone for healthcare providers (Dubai Healthcare City or DHCC); there is a Free Zone for educational and training institutions (Dubai Knowledge Village); there is a Free Zone for media companies (Dubai Media City), there is a Free Zone for financial institutions and services providers (Dubai International Financial Center or DIFC) and many others. There are more than 20 Free Zones currently operating in Dubai itself.

Residency Visa.  

If you have a company in Dubai and in other Emirates of the UAE in general, you will be eligible to get a UAE Residency Visa for yourself, your family members and for your expatriate employees. Having a UAE Residency Visa will give many benefits such as:

  • you can open a current account in UAE Banks
  • you can lease an apartment for long-term basis
  • you can enter/exit to/from UAE multiple times
  • you can get visas for other countries  more easily as a resident in the UAE.

 

Logistics and Infrastructure

Dubai enjoys the position of a significant player in international trading and transport logistics. It has the advantage of its inherent strategic location on the globe. Dubai is in the middle of far east and Europe and situated at the crossroad of international trade between east and west. Due to its geographical location, Dubai is considered to be the gateway to the world’s most progressive markets, including Africa, India and china.

 

  • Air

Dubai offers immense facilities in air transportation and air cargo. Dubai has two airports Dubai international airport and Dubai World Central (Al Maktoum International Airport). Dubai international airport is one of the busiest international airports in the world. It has world’s largest cargo hub known as cargo village, most of the cargos for Asia & Africa are using this cargo village. Dubai world central is operational but it is still in developing phase. DWC is located in Dubai south district which is also future home for expo 2020 site. Once completed and start operation in full capacity it will become world’s largest airport and multi-model logistic hub with the capacity of 160 million passengers and 12 million tons of cargo per year. DWC is an integrated project of six clustered zones Dubai logistic city, commercial city, residential city, aviation city and the golf city. Dubai logistics city is one of the largest industrial submarkets under construction. According to the latest research from cluttons, international real estate consultancy it has already attracted a number of high-profile players including integrated national logistics, emirates, sky cargo, Aramex etc. DWC has one more speciality. It has world’s only 7- star airport terminal for private aviation.

  • Sea

Dubai’s Jebel Ali port is the largest port in the middle east, it is likely to become the biggest container port in the world. The government of Dubai and DP world are working on the expansion plan of Jebel Ali port. According to the official statement, the current plan will multiply the total capacity of Jebel Ali port by seven, making it world’s biggest port, surpassing the ports of shanghai and Singapore. India and china are using it as a logistical hub for their African ventures. Due to its strategic location port is providing market access over 2 billion people across six continents. It is a gateway for over 90 shipping services connecting 140 ports in the world. The strategic geographical location and facilities made it the busiest port in the middle east, according to a research report revealed by arabiansupplychain.com based on statics of 2015. Port Jebel Ali is linked to Dubai’s express-way system and to the Dubai international airport cargo village. The rapid transportation facilities available in Dubai made it possible to achieve ship-air and air-ship connectivity in four hours. Dubai has two more ports Port Rashid and Al hamriya.

  • Land 

Dubai has one of the best road infrastructures in the world. According to world economic forum’s travel and tourism report (2013), the UAE has been rated second best in the quality of roads. Dubai is known for wide roads with disciplined traffic and centralised monitoring system by high-tech cameras and radar. The Dubai metro is world’s largest automated driverless train system, with more than 70 Km of magnetic tracks. The government is working on an extension of the metro route and connecting metro to expo 2020 site. Soon Dubai will enjoy connectivity with 1200 km long Etihad railway network. This network will connect all major population, trade and industrial zones across UAE. This will fulfil freight & passenger needs. Dubai will be connected with GCC rail network also. GCC railway is 2,117 km long rail network this will connect all six countries of gulf corporation counsel. Transportation of goods will become easy for UAE, Saudi Arab, Kuwait, Qatar, Bahrain, Oman. The Dubai government is developing 500 Km road network and 120 multilevel interchanges by investing $ 12 billion. The development work is expected to complete before expo 2020.

Local culture and heritage
Although Arabic is official language; English is the most widely spoken language in business rooms.  The company is hospitable and is ranked safe place to work.
You get a chance to enjoy the delectable local cuisine and Arabic culture in forms of art, music and architecture.

Before we conclude, we‘ll do a bonus section on major UAE cities which you can eye for a business setup.

  • Dubai: It is the most cosmopolitan city in all of UAE, tourists from all over the world visit Dubai for its shopping experience.
  • Abu Dhabi: Home to the richest, it is also the most planned and organized business center in UAE,
  • Sharjah: Sharjah airport international freezone is a premier freezone which attracts foreign investors.
  • Jebel Ali: It is a freezone on the western side of Dubai. Readymade facilities like business parks, office spaces are available for the customers.
  • Fujairah: The Fujairah freezone is an upcoming one and is attracting shipping and transport companies from all over the world.

So, are you excited to start up your own venture in the UAE?  If yes, then prep up your business idea and get in touch with international business consultant in UAE ,Namaccountants -who have guided thousands of business owners for successful business setup in this region.

With Namaccountant team’s international business men and local Middle Eastern exposure, you can rest assured that your business setup is taken care of.

Have more questions on how to go about?

Write to us at  Info@namaccountants.com

 

 

 

Top 10 Benefits of Starting Business In UAE Free Zones

Company Setup in Dubai

UAE free trade zones have been set up to entice worldwide organizations to this part of the world and give them a bother free condition for manufacturing, exchanging and giving services. Setting up a business is speedy and modest, and taxes are either negligible or non-existent.

The UAE has 37 free zones with nine new ones being created. Segments extend from products exchanging, wares, education, health care, information technology, and fund to business services, media, vehicles, and environment.

  1. 100% free transfer of funds
  2. 100% foreign national owner ship
  3. Liberal bank account opening and maintaining
  4. Long term leasing options available at great terms to investors
  5. Easy availability of legal, housing, immigration, labour and other facilities
  6. 100% repatriation of revenue and profits
  7. Documentation is less and more foreign investors
  8. Exemption from personal taxes as well as import and export taxes.
  9. Offers UAE residence visas
  10. Business confidentiality is strictly maintained

 

UAE/Dubai Business

company setup in dubai

General Information about Business Setup in Dubai

To setup any business in Dubai, UAE the steps sketched out underneath must be attempted with a specific end goal to meet the legal necessities of all concerned government experts and to ensure most extreme business advantage for the entrepreneur:

  • Decide, at the beginning, the categories and sort of business activities to be practiced. If you don’t mind decide all the related business activities that can be incorporated into every business permit, subject to a most extreme of ten activities for every permit.
  • Decide the suitable business legal document for your business taking over the coveted business activities and the number and nationalities of the entrepreneurs.
  • Decide the trade name of the business. To survey the terms and conditions for the determination and endorsement of trade names.
  • Present an application to the Department for an Initial Approval and enrolling the trade name.
  • After getting the Initial Approval, you can rent premises and contact the counter of the Planning Department of Dubai Municipality with a specific end goal to confirm this said premise is suitable for the business.
  • Present an application to one of the Department outside branches for a signboard permit for a business trade name as required by the monetary directions.

Documents Required for Professional firms/company setup in UAE

  • Company profile
  • Financial statements for the last two years
  • Passport copy of the local service agent
  • Board resolution for establishing a branch and to appoint the manager for the same
  • Passport copy of the Manager
  • Attested copy(from UAE Embassy) of organization memorandum of association
  • Local service agency agreement duly notarized in the UAE courts

company setup

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Challenges to set up a business in Dubai, UAE

company formation in duubai

Set up a business in Dubai, UAE is a challenging processing. There are many aspects of company setup in UAE including, resident visas, legal requirements and license registrations that must be addressed before you begin to start business operations like customer need and product creation.

Benefits for company formation / Business Setup in Dubai:

  • No income tax
  • Low property transaction cost
  • No property tax
  • No corporate tax
  • No wealth tax
  • No capital gains tax
  • Ease of access to home and corporate finance

The common challenges are,

  1. UAE company ownership

The LLC Company formation in Dubai, UAE Compels on a partnership with a UAE national. The investor will only be allowed to have 49% of the possession in the company, while 51% of stakes will be owned by the UAE national.

  1. Find out the business Partner and investment

The importance of setting up a business, the budget and business partner is highlighted. The first one is finding a perfect partner who would own the major stake in the company.

  1. Building an organized working flow

To build a complete organized workflow. It is not uncommon to find relatively large organizations with workflow management systems that aren’t fit for purpose

  1. Manage Revenue

Managing income is crucial; the UAE can give opportunities of widening your business, it can be similarly risky. It was accounted for by the Association of Chartered Certified Accountants that 82% of startups fail as a result of poor cash flow management. While setting up a business in UAE there are different banks financial institutes that may approach you offering a credit or possibly you could be anxious to contribute or spend more than your ability.

  1. Consideration of the Communication & Culture values

UAE, Dubai is an Islamic country; set up a business in Dubai will be different from starting it in your own country. The level of business communication is distinctive in each world; in like manner UAE takes a formal approach and certainly are constrained. Likewise, men and ladies are imparted at various levels. Emirati culture is the sole of current UAE and Islam assumes an important role in people’s daily life.

company set up in UAE

How to set up a main office in Dubai, UAE?

Company Setup in Dubai

Setup a representative office or branch company in Dubai or anywhere around UAE, the business development team will guide you through the process of business setup in Dubai.UAE Provide various benefits of setting up a company.DCCA (Dubai Creative Clusters Authority) is responsible for the registration and establishment of companies in the Free Zone Business Communities.

Documents required to set up a company in UAE

  • Passport copy of the Manager
  • Financial statements for the last two years
  • Passport copy of the local service agent
  • Company profile
  • Parent Business formation certificate duly attested from the UAE embassy in the home country of the parent organization.
  • NOC letter in favor of the Manager from the sponsor, if he is a resident of the UAE

What you need to do to setup a business in UAE

  1. Investors fill an application

The investors are required to fill an application form with the ministry of economic and commerce.

  1. Take consent from the Economic Department

The ministry of economic will sent the application form to the UAE government for consent.

  1. Take approval from UAE foreign companies committee

The economic department forwarded the application to the foreign companies committees with the ministry of economic and commerce permit letter.

  1. Take the license from the ministry of economic and commerce

After the approval of the UAE Foreign companies, the ministry of economic and commerce provide the license of the company.

Company Setup in Dubai

Company registration in Dubai, UAE

Company Formation in UAE

Company registration in Dubai, UAE requires a permission and trade license from different law agencies and the state government for setting up your business. If you’re aiming to put one up in the city then here are some legal facts and terms you need to acquaint yourself with before you get started.

Three categories of licenses issued in Dubai to register a company

  1. Commercial License
  2. Industrial License
  3. Professional License

Commercial License: This license is issued to a company that will engage in any kind of trading activity.

Industrial License: This license is for those companies that will engage in manufacturing or any industrial activity.

Professional License: This license is issued specifically for service providers, professionals, artisans, and craftsmen.

Documents Required for Professional Firms

  • Company profile
  • Passport copy of the local service agent
  • Financial statements for the last two years
  • NOC letter in favor of the Manager from the sponsor, if he is a resident of the UAE
  • Board resolution for establishing a branch and to appoint the manager for the same
  • Financial statements for the last two years

Company Setup in Dubai

Free zone Company in Dubai, UAE

Free zone Company in Dubai, UAE

UAE free zone company formation is a very risk process, which varies from one free zone to the other. A free zone is also alternatively known as a duty-free zone, tax-free zone or a free economic zone.

UAE free zone company benefits

  • 100% guarantee of repatriation of capital and profits.
  • 100% free transfer of funds
  • Easy recruitment procedures
  • The investors get 100% percent.
  • The investors get ready-made factories, warehouses, offices and licensing procedure.
  • There is no tax liability on corporate gains and any kind of personal incomes through the registered business.
  • 100% repatriation of capital and profits

The Free Trade Zones have been set up with the specific purpose of facilitating investment. The free zones vary in their focus, set up costs and paperwork needed. But the basic requirements are the same.

Which factors to consider choosing a UAE Free Zone?

  • Licenses
  • Location
  • Free Zone prestige
  • Infrastructure and facilities

company setup in dubai

How to Set Up a Company in Dubai?

Company Setup in Dubai

Setting up a new business or set up a new office in Dubai  UAE can be a complicated procedure. Your requirements are the key aspect in processing your case of Business/Company Setup in Dubai. There are many different options depending on the type of business you wish to incorporate and you may have already received conflicting advice on which setup is best for you.

Some types of company formation in UAE:

  1. Free zone Company formation
  2. Private Shareholding Company formation
  3. A general partnership company formation
  4. Joint Venture Company formation
  5. Public Shareholding Company formation
  6. Limited Liability Company (LLC) formation

The company formation is divided into two key factors, one is onshore company formation and another one is offshore company formation.

Advantages of Dubai Business setup

  • Zero taxation
  • strong economy
  • No restrictions on recruitment
  • No currency limitation
  • Low import duty
  • No currency limitation
  • Zero minimum capital requirement

Documents Required for Professional firms/company set up in UAE

  • Company profile
  • Passport copy of the Manager
  • Board resolution for establishing a branch and to appoint the manager for the same
  • Parent Business formation certificate duly attested from the UAE embassy in the home country of the parent organization.
  • Attested copy(from UAE Embassy) of organization memorandum/articles of association
  • NOC letter in favor of the Manager from the sponsor
  • Financial statements for the last two years
  • Local service agency agreement duly notarized in the UAE courts
  • Passport copy of the local service agent

Company Formation in Dubai