Business Setup in UAE – What To Consider In Choosing The Right Location

The United Arab Emirates has 7 emirates, which are very similar to states of America. They are competitive and are aiming at attracting foreign capital for the sake of development. Due to the healthy competition and bright future prospects, a lot of investors are starting to eye UAE for their business expansion.

So, if you are one of them, you are in the right place. Here, we will discuss the process of business setup in UAE and help you find the right location for business.

What are the locations available?

While looking for a suitable location, major consideration must be given to your needs. Depending on these requirements you can determine if you wish to set up your business in either the mainland of UAE or the free zones. There are plenty of differences in both the areas, corresponding to the nature of the business, the extent of liability, and involvement of government officials.

Before we go further into considering which is better, let us understand what they are.

Mainland:The mainlands of UAE are major economic centers, due to the many benefits. If you have your business in the mainland, you can have the flexibility to do business in any part of UAE. In addition to that, there is no business or personal tax and no maximum limit on the number of visas. Also, more activities are available for the investor to indulge in and obtain a license for.

There are a few types in which only a UAE national can invest, rest others are open for nationals of other countries if they have a UAE national as their sponsor. The sponsor can be

  • A partner with a 51% share in the capital
  • A Local Service Agent

Free Zones: A free zone is a zone that allows free trade or free economy. In free economic zones the taxation, trade or business rules are very different from that of rest of the UAE. There are various benefits of setting up a business here, which includes 100% exemption on import and import tax, no corporate or personal tax, and ease of starting a business with very fewer procedures.

In a free zone, you can do almost any kind of business ranging from finance to education, from retail to hospitality and even media. All these considerations apply to majorly every free zone. However, it can re-confirmed from the authorities of specific zones.

Each emirate has a free zone to promote investment, but Dubai and Abu Dhabi are the two major zones for business.

It is evident that business setup in Dubai or business setup in UAE has its fair share of advantages. Aside from these, one must also be very careful in going forward. Doing business in Emirates is a slow process and requires utmost patience from the investors. Therefore, one must have ample time, money, patience and select the location with care and precision to protect their investment.