The United Arab Emirates attracts entrepreneurs from all over the world due to its favorable business conditions and comfortable taxation. Let's look at the main advantages of starting a business in the Emirates and the necessary steps for this.
The benefits of starting a business in the UAE include:
1. Advantageous geographical location, making the Emirates a key global market with a developed economic system.
2. Loyal and comfortable taxation for business, the total tax burden is significantly lower than in other countries.
3. Stable and reliable banking system, with many UAE banks included in the rankings of the world's best banks.
4. Intolerance to corruption and its minimum amount, which creates comfortable conditions for doing business.
5. A large number of free economic territories with different conditions for business.
What is necessary to establish a company in the UAE?
Regardless of the nature and specifics of the business, initiating any company in the Emirates mandates obtaining permission, applying for a resident visa, securing an office space, and opening a bank account. Optionally, one can also register their brand.
Acquiring a license (картинка)
All commercial endeavors in Dubai mandate licensing, with each specific area requiring its distinct license. These licenses are typically issued for a year, with costs contingent upon the type of license. Upon expiration, renewal requires confirmation of compliance with all necessary standards.
Securing a Resident Visa (картинка)
Although entry to the UAE is feasible on a tourist visa, business registration necessitates a resident visa. This enables official employment, residence in the Emirates, and long-term premise leasing. Resident visas are granted for two years, contingent upon maintaining their status through bi-annual entry to the UAE. For those contemplating permanent residence and employment in Dubai, a golden visa presents an option. Attainable through substantial investment—either in real estate or deposits—earning over AED 30,000 also qualifies for this visa.
Office space rental (картинка)
Part of the registration process entails leasing an office. Minimum area requirements vary depending on chosen free zones and specific business attributes. Typically, this ranges from 4 to 12 square meters per employee, with lease duration aligning with licensing, necessitating at least a one-year commitment. Some free economic zones permit virtual offices (flexi desks), offering cost-effective workspace solutions with communication and mail handling capabilities. Due to the numerous nuances surrounding this topic, we recommend that companies reach out to AH Accounting for guidance.
Opening a bank account (картинка)
It's recommended to submit applications to multiple banks simultaneously because of the extended processing times, which can last up to three months. Deposit size significantly influences account approval likelihood, with immediate deposits ranging from $50,000 to $150,000 enhancing approval prospects.
Trademark registration istration (картинка)
While not obligatory, trademark registration is prudent for brand development. Without it, unauthorized use of company names or logos poses risks of name appropriation and potential loss of invested PR funds.
Cost Considerations (картинка)
Registration costs in the UAE vary based on jurisdiction and license type. For instance, mainland company registration, including licensing, typically costs between AED 15,000 to AED 20,000. Free zone registration expenses differ by selected territory, with Dubai being the most sought-after albeit pricier option, averaging around AED 20,000. Ancillary costs such as document preparation, visa acquisition, notarization, and trademark registration should also be factored in.
What business to open in Dubai
Determining the ideal business to establish in Dubai is not a straightforward task, as success and profitability hinge on various factors unique to each situation. However, there are a few noteworthy sectors worth considering:
1. Trade: The UAE government's efforts to foster an entrepreneur-friendly environment make trade a lucrative option, particularly given the low VAT rate of 5%.
2. Construction: The influx of expatriates to the UAE continues to drive demand for new properties, fueling growth in the construction sector, a trend projected to persist for decades.
3. Tourism: With ambitions to position Dubai as the world's premier tourist destination, government initiatives aim to enhance the country's appeal and accessibility to foreign visitors, offering opportunities for businesses in the tourism industry.
4. IT and cryptocurrency: The UAE prioritizes the advancement of modern technologies, evidenced by robust legal frameworks supporting IT and cryptocurrency ventures, facilitating transparent and comfortable business operations.
While these sectors hold promise, success in any business endeavor ultimately depends on strategic execution. Therefore, entrepreneurs should remain open to exploring diverse opportunities beyond the aforementioned areas.
Initiating a business in the UAE entails navigating complex legal procedures. AH Accounting offers comprehensive support in company registration and business establishment, handling documentation, permits, and registration processes. Service costs and timelines are tailored to individual circumstances and determined following a complimentary initial consultation.
Reach out to AH Accounting for free consultation in launching your venture in the UAE.
2. Loyal and comfortable taxation for business, the total tax burden is significantly lower than in other countries.
3. Stable and reliable banking system, with many UAE banks included in the rankings of the world's best banks.
4. Intolerance to corruption and its minimum amount, which creates comfortable conditions for doing business.
5. A large number of free economic territories with different conditions for business.
What is necessary to establish a company in the UAE?
Regardless of the nature and specifics of the business, initiating any company in the Emirates mandates obtaining permission, applying for a resident visa, securing an office space, and opening a bank account. Optionally, one can also register their brand.
Acquiring a license (картинка)
All commercial endeavors in Dubai mandate licensing, with each specific area requiring its distinct license. These licenses are typically issued for a year, with costs contingent upon the type of license. Upon expiration, renewal requires confirmation of compliance with all necessary standards.
Securing a Resident Visa (картинка)
Although entry to the UAE is feasible on a tourist visa, business registration necessitates a resident visa. This enables official employment, residence in the Emirates, and long-term premise leasing. Resident visas are granted for two years, contingent upon maintaining their status through bi-annual entry to the UAE. For those contemplating permanent residence and employment in Dubai, a golden visa presents an option. Attainable through substantial investment—either in real estate or deposits—earning over AED 30,000 also qualifies for this visa.
Office space rental (картинка)
Part of the registration process entails leasing an office. Minimum area requirements vary depending on chosen free zones and specific business attributes. Typically, this ranges from 4 to 12 square meters per employee, with lease duration aligning with licensing, necessitating at least a one-year commitment. Some free economic zones permit virtual offices (flexi desks), offering cost-effective workspace solutions with communication and mail handling capabilities. Due to the numerous nuances surrounding this topic, we recommend that companies reach out to AH Accounting for guidance.
Opening a bank account (картинка)
It's recommended to submit applications to multiple banks simultaneously because of the extended processing times, which can last up to three months. Deposit size significantly influences account approval likelihood, with immediate deposits ranging from $50,000 to $150,000 enhancing approval prospects.
Trademark registration istration (картинка)
While not obligatory, trademark registration is prudent for brand development. Without it, unauthorized use of company names or logos poses risks of name appropriation and potential loss of invested PR funds.
Cost Considerations (картинка)
Registration costs in the UAE vary based on jurisdiction and license type. For instance, mainland company registration, including licensing, typically costs between AED 15,000 to AED 20,000. Free zone registration expenses differ by selected territory, with Dubai being the most sought-after albeit pricier option, averaging around AED 20,000. Ancillary costs such as document preparation, visa acquisition, notarization, and trademark registration should also be factored in.
What business to open in Dubai
Determining the ideal business to establish in Dubai is not a straightforward task, as success and profitability hinge on various factors unique to each situation. However, there are a few noteworthy sectors worth considering:
1. Trade: The UAE government's efforts to foster an entrepreneur-friendly environment make trade a lucrative option, particularly given the low VAT rate of 5%.
2. Construction: The influx of expatriates to the UAE continues to drive demand for new properties, fueling growth in the construction sector, a trend projected to persist for decades.
3. Tourism: With ambitions to position Dubai as the world's premier tourist destination, government initiatives aim to enhance the country's appeal and accessibility to foreign visitors, offering opportunities for businesses in the tourism industry.
4. IT and cryptocurrency: The UAE prioritizes the advancement of modern technologies, evidenced by robust legal frameworks supporting IT and cryptocurrency ventures, facilitating transparent and comfortable business operations.
While these sectors hold promise, success in any business endeavor ultimately depends on strategic execution. Therefore, entrepreneurs should remain open to exploring diverse opportunities beyond the aforementioned areas.
Initiating a business in the UAE entails navigating complex legal procedures. AH Accounting offers comprehensive support in company registration and business establishment, handling documentation, permits, and registration processes. Service costs and timelines are tailored to individual circumstances and determined following a complimentary initial consultation.
Reach out to AH Accounting for free consultation in launching your venture in the UAE.