Business setup in Dubai and the UAE is easier than ever before right now. Mainland companies are getting most of the benefits of Free zone companies thanks to some recent amendments of laws concerning business setups. Even before these changes, the UAE and especially Dubai had been a hub for businesses and startups.
There are several reasons why the UAE became the hub for startups. For a start, the country is located at the heart of the Middle East making it the perfect place to conduct global trade from. The country’s tax laws are attractive as well. They have zero tax on personal and corporate incomes with a few applied terms. The free zones in the country provide a wide array of other benefits that are too attractive to pass out on.
However, starting a business anywhere in the world does have its share of hurdles. Even if some has countries have fewer complexities than others. A new business set up should never be taken lightly. So, today we will discuss the things to consider when starting a small business in the UAE.
Deciding between mainland and free zone
There are advantages to both mainland business setup and free zone business setup in Dubai. However, people are leaning towards the mainland more nowadays. As we said before, a few amendments were made recently. Before these changes, mainland businesses required foreigners to have a local sponsor or partner. Also, they could not own more than 49% of their own business. The other 51% had to be owned by an Emirati. Now, after the changes, foreigners can own 100% of a mainland business. This is the main reason more people are moving towards mainland businesses in the present.
There are more reasons that make mainland businesses attractive. For instance, mainland businesses can trade with other businesses inside and outside the UAE. While free zone businesses can only trade with other businesses in the free zone. Mainland businesses can set up offices at any suitable location in Dubai or the rest of the UAE. They can take on government contracts as well as private contracts.
Free zones have their own list of advantages. First of all, business setup in the free zones is easier and more straightforward. Some free zones in ports offer exemptions on import and export taxes. All free zones require businesses to pay 0% tax on imports and exports. Free zone businesses can trade with businesses outside the free zones through a distributor. Note that these distributors charge a fee for their services. Free zones also provide help with things like a visa for spouse or employees, opening corporate bank accounts, and much more.
Researching business setup costs
Despite all the benefits the government and free zones provide. Starting a business from the ground up can be expensive. It is estimated that businesses require a minimum of $9350 to get started in the UAE. This number will vary depending on the sector and space where you are planning on doing business.
Mainland businesses must have a minimum office space in the UAE to get licensed. The minimum office space requirement depends on the number of employees you will have. Rent for one year must also be paid in advance. Free zone businesses do not face this barrier. They can start with virtual offices or no offices at all.
Costs of documentations should also be taken into account when planning. These include legal documentation, attestations, tradename registrations, visa, government certification, immigration, and more. There are fees that need to be paid to the Dubai Chamber of Commerce, Ministry of Economy, and Dubai Municipality. It is suggested to get professionals to do the initial business setup.
If you are starting out in a free zone business setup, you do not need to face the Municipality and Minister of Economy. You can apply directly to the governing body of the free zone. While mainland licenses can take up to three weeks to process, free zone licenses take much less. The time required will depend on the sector your business falls under, but it will not be more than a few days. Regardless, our suggestion is to seek out a company formation professional.
If you decide to take professional help, they will produce a summary of all the costs. Even then it is wise to have a basic idea of the things to expect and the things not to expect.
Getting a UAE visa
Again, it is suggested to get a professional on UAE company set up for the visa. You will need a visa for yourself and visas for your employees as well. The process for getting a visa is straightforward yet crucial. After you have your UAE business license, you can sponsor visas for other people. It can be for your spouse, parents, children, or even domestic workers. There is a maximum number of visas you can apply for. The limit for this number will depend on the size of your company.
Opening for a corporate bank account
Company setup experts have useful connections to help you through the process of opening a corporate bank account. Since the UAE has strict money laundering regulations, getting access to corporate banking facilities is difficult without connections. Thankfully, the experts can help you seek out banks that will best suit your needs. However, even with the help of professionals, always check the banking fees and charges by yourself before opening an account. Even if the bank has a good reputation, check the requirements and fees for yourself.
With a monotonous way of doing business, things can get impacted adversely. You can change how your business functions with the help of Company Setup Dubai that will help you to try new ventures and areas to have a different experience and smartly expand your business. While going big in your venture, the first thing that needs to be done is the business setup. With us, you have nothing to worry about as we have tons of ideas to do so. You just need to let us know your requirements and we will proceed as needed.
Get smart ideas for setting up a business
With the competition getting tougher day by day, it is now highly recommended for businesses to take expert advice for matching up with the pace. With Company Setup, you will have nothing to worry about as we will help you with everything. Our services for business setup Dubai is something that you need to check without a miss.
Get the freedom to do business
Offshore business setup is nothing but the freedom of banking security. With your business being set up offshore, you can easily have multiple bank accounts required to deal in different currencies and carry out the business smoothly. It is mostly for businesses that have a strong international presence or wants to have one.
To summarize, it will always be the best option to seek help from business setup specialists. Even if the processes may not seem complex, experience in the subject matters a lot. Remember that the process is only straightforward when the business and license applications are free from errors. Company setup experts will assist you from applications to bank accounts and visas and everything in between. They will do everything necessary to establish your business so you are free to concentrate on other things.
Read more – Benefits of a virtual office space