As a small business ourselves we are frequently asked to provide top tips or offer general advice when it comes to running a business. So, we’ve partnered with PRO Partner Group to share this useful feature…
By PRO Partner Group
Have you got an amazing business idea bursting out of you? Want to know how to get a new company off the ground?
Having helped over 300 businesses set up in the Middle East, Jane Ashford of PRO Partner Group shares key steps to consider when establishing a business in the UAE.
Your first big decision – how to set up your company legally in the UAE
There are 6 different business vehicles that foreign investors can use to set up their company in the UAE: Limited Liability Company (LLC), Branch Office, Representative Trade Office, Commercial Agency, Professional Service Licence or Free Zone.
With so many options, your head might be spinning, so we’ll touch on two of the most commonly used vehicles Limited Liability Company (LLC) and Free Zone.
Limited Liability Company (LLC)
An ‘on shore’ business that allows you to trade more freely, but at least 51% of the share capital should be owned by a local partner, either a UAE National or a 100% owned UAE company. Profits don’t have to be split in the same way and can be negotiated with your local partner.
Free Zone
In a Free Zone a foreigner can own 100% of the business, but there are restrictions on where you can trade without going through a local agent.
Key steps to setting up your business
In some countries you can set up a business in one day at fairly low cost. In the UAE however this can be a lengthier process with additional steps to consider. These are some of the steps to consider:
- Determine a legal form, eg. LLC or Free Zone
- Specify your company’s activity, eg. Consultancy, Trading or Real Estate
- Register a Trade Name
- Choose the correct business set up partner (Emirati sponsor and company formation specialist)
- Get government approvals
- Obtain a business license
- Get a business bank account
- Establish an office space (free zone or private office)
- Coordinate staff visas
- To ensure you comply with the law and make the right choices for your business model, it is recommended to speak to a company formation specialist.
Money matters
To set up a low cost, single-person company in a free zone will cost between AED 10,000 and 50,000, and goes up to around AED 100,000 for an onshore limited liability company.
For assistance with starting a business in the UAE, contact PRO Partner Group: email [email protected], 02 448 4810.
For more information visit – www.propartnergroup.com
