The United Arab Emirates is one of the most popular places to visit in the world. Tourists from all over the world visit the UAE and this creates a unique experience as the place brings people from all over the world together.
With the pull of such many tourists and its popularity ever increasing, UAE is never a bad option if one is considering starting a business or a company there. The locals there are wealthy and the tourists are by no means going to save the money they came to spend in UAE, it can prove to be a good market to move to with your business idea.
States of the UAE
UAE has made of seven emirates, also can be called states, they are respectively known as
- Abu Dhabi
- Dubai
- Sharjah
- Um Al-Quwain
- Fujairah
- Ajman
- Ra’s Al-Khaimah
The following are the emirates UAE is made up of, and among them, there are almost 40 free zones to operate a business.
Mainland vs Free-zone
There are three types of markets one can operate in the UAE
- Mainland
- Free-zone
- Offshore
Mainland company is also known as an onshore company and the license to establish such company is provided by the Department of Economic Development (DED) of the emirate one has planned to open their company in. Establishing an onshore company also requires a part of the business to be owned by a local.
A free-zone company in UAE means a company where one does not need to partner with a local and they can own 100% of the company. Free-zone companies are also exempted from any import and export taxes, and also no personal income taxes are required to be paid in free-zone company
An offshore company is also a great way of doing business in the UAE. Offshore companies have many advantages like no corporate tax, 100% foreign ownership, UAE bank account, virtual office facilities available in the UAE.
Registering a company in free-zones
UAE has over 40 free zones that are scattered all around the seven states. Most of the free zones are situated in Dubai. Free zones offer many advantages and one can set up a company in a free zone to benefit from such advantages.
Setting up a free-zone company is rather easy and does not require bundles of paperwork. Some of the steps are:
- Determine the type of legal entity
- Choose your trading name
- Applying for a business license
- Choosing space for your office
Determine the kind of company your business would turn out to be. When operating in a free-zone, you can choose one kind out of the two, Free-zone Limited Liability Company (FZ LLC), or Free-zone Establishment (FZE)
Choosing a trading name that would not violate public morals or public order of the country. Should not be offensive to any group of people, has not already been registered, and is also compatible with the kind of business you have planned to operate.
You will also be required to register your company with the type of operations it will carry out. Naming your business, if it deals in automobile parts, in its proper category is also very important.
