business setup uae
UAE with its economic strength and business supportive policies has attracted entrepreneurs all over the world. Business setup in UAE has become the vision of all business men and expats from the Asian and western countries. The reason is a history of events that has supported healthy business all over the emirate thru centuries.
The emirate of UAE has been doing business over six centuries now. In ancient times UAE was famous for its pearl Business which actually got ruined after the discovery of cultured pearls. But it did not ruin the economy of the country. Wit strategic planning the UAE market has become a aspiration of every business men all around the world. UAE is the crown of business entrance for the entire Middle East and Africa and Asia. The administration of UAE has set up business precise free zone all along the emirate with the aspiration of bringing a boost to the economy by raising the property value of Dubai.
Here in the following discussion we shall explain the Business setup in UAE.
business setup uae
business setup uae can be excessively rewarding and profitable. But no business activity in any where could be performed without its own risks. And if a foreign investor is looking to start a business in UAE there are a considerable amount of risk involved without proper information or guideline.
A foreign investor or businessman should be aware of the fact that he should have a local sponsor or a local partner who will hold the maximum share of the company, the minimum share holding of the local partner is 51 %, although it is not necessary that he would get equal amount of profit share. It is important for the foreign investor to follow the business ethics of the emirate to successfully run his show. Any business operation running in the emirate of UAE should be open and lawfully done. Before starting a Business setup in UAE an entrepreneur or an organization could maintain the following procedure discussed here.
UAE is one of the most sociable emirates in the entire UAE in terms of business and trade. It is open to people all over the world belonging to a huge diversities of race and religion. This makes things a little competitive in nature which is also healthy for economic development in the emirate; a survey of the market is a must before starting up any business Set up service in UAE. Make a list of competitors and strategies the business plan accordingly.
business setup uae
Investing in a foreign country is always risky business, to setup a successful business service in UAE it is essential for a company to built its own business ethics and apply them accordingly. More over the business plans made by the organization is mandatory to be presented to the department of economical development in UAE for getting approval of business. Not only that, for special Business setup in UAE like Medical facilities, printing and publishing, food business and alcohol & beverage type of business require additional approvals from various governing departments in Dubai. Finding a local partner that is a citizen or organization is another important factor for setting up a Business setup in UAE.
A local partner belonging to similar trade of business might be of supreme help. The local partner being in the UAE market should know the basic nooks and corners of the commercial market and the requirements of the government needed to be full filled for business operations. The local partner are also needed for the Business setup in UAE who all will be the major share holder of the business formed in the emirate but it is not necessary that he will retain the majority of the profits that the business yields. Proper agreements made between the mother company and the local party can divide the profit share in a ratio of 80% for the mother company leaving the other par for the local partner.
When looking for local sponsor parties it is advised to the foreign organization to visit the UAE Chamber of Commerce and Industry where the rules and regulations and other information necessary for Business setup in UAE can be easily availed. Before any permission is given by the government organizations for setting up a Business setup in UAE it is mandatory to maintain a minimum amount of currency in the bank account of the respective organization.
The minimum amount for an individual to have in their bank account is $ 10000. However depending on the type of business the minimum amount may vary between $10,000 to $50 thousand An investor for starting a Business setup in UAE may try to invest in trade free zone; there are more than twenty trade free zones all over the emirate which offers a lot of benefit to foreign investors.
These trade free zones give tax exemptions on commerce, exports and import, land, building, property license charges etc. however it should be kept in mind that these exemptions will not be applicable while availing a general trade license in Dubai. Before approaching the department of economic development or the chamber of commerce it is advised for an individual to get advice from a legal representative who is experienced in handling the issues of a foreign investor in Dubai. The cost of availing such a lawyer in the emirate is not very expensive so as compared to other developed countries.
And the final suggestion for a business set up service in UAE is to know the way to advertise. Proper promotion of any business is essential in any country. Find telecom, television, printing and publishing, and other media for proper marketing of the business service in Dubai. For example a restaurant business can always promote an advertisement in local television channels or travel guides that will not only attract the local customers but the foreign tourists as well.
With proper methods followed cautiously and skill fully a business set up service in UAE can be rewarding beyond expectation and making profits would be simpler.