How to open a business in the UAE

How to open a business in the UAE - Makebiz

Recent decades have seen the United Arab Emirates rapidly transform into a global business and financial center, attracting entrepreneurs from all over the world. The UAE’s strategic location, political stability and first-class infrastructure create favorable conditions for business growth and development.

First of all, it is worth identifying the advantages of opening a company in the Emirates:

  • Unlimited opportunities. Its location at the crossroads of continents allows it to be a link between the West and the East, providing unimpeded access to markets around the world.
  • Advanced Technology. Active incorporation of the latest technologies into the business environment ensures sustainability and efficiency.
  • Minimal taxes. The UAE offers one of the lowest tax systems in the world, easing the financial burden on investors and entrepreneurs.
  • Simplified and transparent registration process.
  • Obtaining a residence permit (TPL). Investing in the region paves the way for long-term residence permits, allowing foreign entrepreneurs to live and work in the Emirates.
  • Effective business attraction strategies. The strategic geographical location provides favorable access to markets in Asia, Europe, the US and other parts of the world, expanding trade opportunities for businesses.

Let us note the main types of companies available for opening:

  • Free Zone Company: involves opening in free economic zones offering 100% foreign ownership and tax incentives. The availability of more than 40 freezones allows you to choose the most suitable one for the type of business you want, thanks to their different specifications.
  • Limited Liability Company: limited liability companies for doing business both in the UAE domestic market and abroad.
  • Sole establishment: a sole proprietorship to provide professional services.

The total cost of registering a company varies depending on the type of jurisdiction, planned activity, number of founders, rent of premises and many other costs.

The main types of costs are:

1. Registration fees:

  • Reservation of trade name and fees
  • Administrative Fees
  • Registration fee of the Department of Economic Development or Freezone Authority for issuance of license.
  • Legal documentary support (statutory documents, translation into Arabic, etc.)

2. Premises rental costs:

  • Office rent (depends on the area and location).
  • Registration of the lease agreement (for local companies).

3. Related costs:

  • Support services: may vary depending on the provider chosen.
  • Visas for employees (for companies hiring foreign staff).

4. Opening a corporate bank account is worth mentioning separately. The cost of opening will depend on the amount of work done with proper preparation of documents.

The final cost will depend on individual circumstances, the need for external approvals in the Ministry and the chosen jurisdiction.

In summary, the main stages of opening include:

  • Choosing a trade name that fits the legal requirements.
  • Obtaining a license to operate.
  • Selecting a suitable office solution.
  • Obtaining external approvals, if necessary.
  •  Issuing visas to the founders and employees of the company.
  • Opening a corporate account.

For entrepreneurs seeking to expand their business globally, the UAE is the best choice. The number of investments in the region is growing every year, thanks to favorable and simplified conditions of registration here and high profitability.

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