Build Your Business In UAE And Control It From Any Part In The World

Earlier UAE used to be a country with no eye for development and was certainly not a favourite destination to set up shops for businesses, for most entrepreneurs out there. But in the last couple of years, the country has jumped exponentially, in providing the perfect environment and scenarios to build a successful company. The power and agility of industrialization have taken over the whole of UAE.

Also, there’s no corporation or income tax in UAE – even though in 2018, there will be an introduction of a VAT, at just 5 percent. Therefore, the following are some of the most important tips and tricks you should learn about, before starting your journey.

The Basics Regarding New Company Set Up In Dubai

The first thing to know about any new company set up in the country of UAE is that the company will be set up as an LLC or Limited Liability Company. Only after that, you will get the option to opt for registering the company either in the Freezone or on the Mainland. This decision will affect the company future prospects as well.

Freezone Company Formation Dubai vs. Mainland Company Formation

If you’re planning for company formation in Freezone, be sure to keep in mind that companies which are formed in Freezone will not need any kind of sponsor in registering it. This seems like an easy route, but you should also keep in mind that Freezone companies are not allowed to do direct business inside UAE. Therefore, they’re only limited to their own zones or do business outside of national borders. Combined with that, there will also be a lot of rules and requirements that need to be performed. This is indeed a more short-term solution.

But, if you’re looking for long-term, then Mainland registration is the way to go. You will not only get the green signal to do business inside of UAE but also get access to any specific location inside of the country. This will help in targeting a wider range of audience.

Owning Of the Company

Going for a 100 percent controlled company set up in Dubai means that Freezone company formation Dubai based will help foreign investors get all the control they want. On the other hand, companies which are registered on the Mainland are allowed for a 49 percent foreign investment and 51 percent reserved for the local sponsor.

The local sponsor, however, will not get any direct control of the company, and it will only be controlled by the foreign investors only. This is indeed brilliant news for foreign entrepreneurs out there.

The Main Process
After you’ve selected whether to set up shop in Freezone or on Mainland, it’s now time to opt for a local sponsor and then apply for a license. This includes building a good relationship and communication channel with your sponsor, along with various other formalities, like building Memorandum of Association (MOA) of the company, ownership details, etc.

Apart from that, you will also need an entry stamp on your passport. Combined with that, you also need to submit various other documents, like board resolution, certificate of incorporation, other shareholders’ visa and passport, etc. as well.

The Dubai Department of Economic Development (DED) handles all the registration process, including the selection of the company’s naming process and the business type too. Expect this process to be completed within 90 days.

Other Points to Consider
It should be noted that the cost of the license should fall anywhere from $1000 to $6000. After receiving the license, you can proceed towards setting up the business bank account and start operating from day one. You will get access to the lucrative market of the country of UAE, if you opt for Mainland registration.

Another thing to keep in mind is the selection of a professional director. A professional director will help you get the most out of your business, oversee day to day tasks, manage your company’s tax systems, etc. The authority that you wish to give to your professional director is purely upon you, and they will be paid outside of the shareholding structure. This is an important thing to consider when you want to control your business remotely.

It’s hard to find fault in this smooth process of setting up your new business in the country of UAE. The law is fairly lenient, there is no overburden of taxes, and you get direct access to the whole of the country’s resources. The market is fairly dynamic and friendly, and allow the owners to work from anywhere in the world.