CONNECTING YOU TO OPPORTUNITY
A business hub for the region and beyond, the UAE continues to be increasingly popular and attractive to businesses worldwide. Although an oil–rich state, the UAE has diversified its economy into various sectors to become a global center for business, trade, and finance.
Business Setup Landscape in the UAE
Foreign investors have five options to do business in the UAE:
Acquiring/Investing in an Existing Local Entity: This option allows foreign investors to acquire or invest in an existing UAE company or business.
Operating Business Through an Agent/Distributor: This option allows foreign companies to involve an agent/distributor in the distribution and sale of their products, or providing services for a fee, leveraging the agent or distributor‘s local market connections. There is no need for a foreign company to establish a physical presence in the UAE.
Trading from Overseas: This option allows foreign investors to trade in the UAE from their home country without establishing a physical presence in the UAE.
Establishing a Joint Venture (JV): A JV allows the foreign investor to take an equity stake and a role in their UAE entity’s operation and management. The local partner may contribute by way of technical skills or local connections and reputation, or even financially.
Setting up a Local UAE Entity: This option allows foreign investors to set up a free zone or an onshore (mainland) company in the UAE. Whether to set up a business onshore or in a free zone depends on the nature of the business activity, the company plans to carry out in the UAE, and its customer locations.
Onshore/Mainland Business Setup: Foreign investors wishing to operate in the mainland UAE can either set up a limited liability company (LLC) or a branch/representative office. The main benefits of having an onshore entity are:
Free Zone Business Setup: Foreign investors can choose to establish a 100% foreign–owned company or branch in one of the many free zones across the UAE. Free zone businesses can operate freely within their respective free zone and outside the UAE, but not in the local market. Each free zone is governed by its own regulatory authorities, and the licensing authority within each free zone issues free zone licenses.
Offshore Entity/International Business Companies: Companies that do not intend to engage in business activities within the UAE (either onshore or within a free zone) can set up an offshore entity under the offshore regulatory system. Offshore businesses are not permitted to trade with the UAE and cannot open a bank account or obtain a UAE tax residency certificate. However, the main benefits of an offshore entity include:
Why is the UAE the Best Option for Expats?
So, if you are an expat wanting to start a business in the UAE, then this is the best time to get on board. It is best to seek professional help from business setup consultants like Creative Zone. Call 800 LICENSE (5423673) to talk to one of our Business Setup Consultants today!
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