Alchemist- An accounting and consulting firm for your assistance.

Discover the Secrets Behind Setting up a Small Business in UAE

global

The United Arab Emirates reverberates the story of a majestic economic success. The sovereign state has been consistently placed at high business rankings globally over the recent years. The state also ranks high in the world when it comes to ease of doing business. Experts have also said that it is setting up a business in UAE is much easier and simpler than most Middle East states. As per the World Bank, it takes just eight days and six simple procedures to set up a company in UAE.

Secrets behind setting up a small business in UAE

Considering the fact that the state remains very well versed with the global trends and innovation, UAE offers abundant opportunities for investors, exporters and entrepreneurs offering them a state-of-the art infrastructure and an ideal environment for development. If you are someone who is looking to set up a small business in UAE, all you need to do is follow some simple steps:

Nature of business

Before setting up a company in UAE, you would need to get license from the authorities. The kind of license depends on the nature of your business whether it is professional, commercial or industrial. It is important to understand that certain businesses such as veterinary activities, food trading, jewellery business or legal consultancy would require further approvals from various departments of the government. The Department of Economic Development has listed various businesses that can be run in UAE, you can either choose from the list or contact the department in case you are looking for something which is not specified in the available options.

Ownership

If you are a foreign national looking forward to having a 100% ownership of your company the you would need to have a location and license available in the free zones of the UAE. The free zones are a prime attraction for foreign investors in UAE as these zones promote a model of 100% ownership with zero taxes. Each free zone caters to a specific kind of activity. Therefore, it is imperative to have clarity regarding the nature of your business so that you pick up the best option for yourself. If you are someone who is looking for a local license, then you would need to seek permission the Department of Economic Development in the UAE. The DED provides license for various economic activities depending on the different legal structures that exist in the state.

Legal Framework

Each free zone operating in the UAE has its own legal structure and you would need to be aware of it in order to understand the subsequent steps. The details of free zones can be accessed through their official websites. Setting up a company in one of the free zones of UAE is an extremely lucrative option as the goods can be manufactured and exported from here without the intervention of authorities. Most of the free zones are placed around airports, seaports and other areas having an advantage for trade. If this is too much of a hassle for you, then it is always a good idea to consult professional.

Name of the trade

The trade name if an extremely crucial part of the legal procedure. The name of the company should be reflective of the nature of the business. The rules regarding the names of the trade can be accessed on the DED website.

Capital

In most of the cases, you would not need to pay minimum capital at the time of setting up of the business. Once you sort out the legal forms and procedures, it would be advisable to look at all possible available options regarding office set up. Free zones are hassle-free that way as they usually provide assistance in finding an appropriate and suitable premise as per your requirement. They also help to set up Internet, water and other important amenities.

Hiring

Hiring procedure varies from zones to zones and even otherwise. In most legal forms, you would be allowed to hire even before the approval of your registration. However, in some cases you may not be allowed to hire at all. Even in the case of free zones, there are certain regulations regarding the hiring process. It is always a good idea to fetch all the details regarding hiring beforehand.

If you are a foreign national setting up a company in the UAE, then it is compulsory for you to have a local agent, sponsor or partner in order to get DED licenses. Although free zones do not have such restrictions, but it is always better to have a local contact as it may help you in running your business smoothly and effectively. Dubai boasts about the ease of set up it offers when it comes to business and the business options available in the state for business are indeed lucrative and impressive.

For more information / Assistance:

Email: connect@alchemistme.com

Call : +971 567171569