If truth be told, UAE is one of the ideal places for entrepreneurs and startup businesses in the region. Strong economy, high living standard, business friendly economic policies and a number of incentives, tempts foreign investors to consider expanding their business to UAE. However, some investors hesitate to setup a business in UAE due to lengthy and stressful process of company registration. To be honest, company registration process in UAE is not as difficult as it may sound provided you have complete information about the business setup procedure in UAE. For this reason, it is highly recommended for you to acquire as much information as you can about the company formation procedure in UAE.
But before you start the company formation process in UAE, you will have to find out which economic jurisdiction suits best for your business. If you don’t know already, UAE has seven Emirates that have their own economic jurisdictions. Rules and regulations for establishing and running a business can vary from Emirate to Emirate. Moreover, all the Emirates of UAE also offer Free Trade Zones to foreign investors to setup their business. Each Free Zone authority will offer different set of regulations and incentives for those who want to register a company with them. For instance, procedure for RAK Free Zone business setup will be different than registering a company with Dubai Economic Department. Following are a few tips that will help you acquire enough information that will be required for the smooth company formation in UAE:
Determine your business needs
You must determine the needs of your business before selecting the suitable economic jurisdiction to setup your business with. It is highly recommended for you to conduct proper research to find out maximum information about the procedures, regulations and incentives of each economic jurisdiction available in UAE before setting up your business.
Ownership of your business
If you are not confortable adding a UAE national as a partner in your business than only option that you will have is by registering it with one of the Free Zone authorities in UAE. Good news is that there are dozens of Free Trade Zones throughout UAE to pick from which offer attractive incentives to investors Such as Fujairah Free Zone company registration and any more.
Choose the right type of business license
Lastly but most importantly, you will have to choose the right type of license that matches best with your business activity. In UAE you will find three different types of business licenses: Trading License, Commercial License and Professional License. Make sure that you choose the correct license type based on the nature of your business.