Things You Must Know Before Setting Up a Company in the UAE

Company setup in the UAE is always a bright idea and appears extremely fascinating due to good economic returns and tax exemptions. UAE is topping the list of places with the best pro-business environment for any foreign investor. It is the place where any fresher can start his business venture without any hassle. The place provides a tax-free platform for new business with investor-friendly government policy.

The country has the most expanded business ventures that run on innovative business models. Hearing stories of successful company formation in the UAE may seem fascinating to you but there are many things which you need to know before getting into the same business. Scroll down to have basic knowledge about the business environment in UAE:

1. Know about Mainland, Free Zone and Offshore.

Depending upon the requirements, commercial activities, taxation and ownership Business setup in the UAE is categorized into three main authorities: Mainland, Free zone and offshore.
A mainland company allows you to do business in the local market as well as outside the UAE without any restriction. It is an onshore company, which is officially licensed by the Department of Economic Development (DED) in Dubai, UAE.

A free zone establishment allows you to do business in a free zone with 100% ownership and zero taxation. In this establishment, there is no requirement of sharing 51% of your company with a local sponsor.

Talking about offshore companies, these are structured under free zone and it enjoys benefits that a free zone company does in terms of ownership. But the major difference between an offshore company and a Free Zone company is in the method of operation. While a free zone company will allow you to obtain an office premises and apply for visas under its license, an offshore company will only entitle you to a license. Offshore companies can be used for various purposes but are mainly used as holding companies. An offshore license does not entitle you to have an office premises or apply for any visas. anonymity. The company details of an offshore company are kept anonymous and free zone Company’s information is available when requested. For setting up a business venture in UAE you first need to know which Jurisdiction will suit your company according to your requirements and further you can proceed for same.

2. Know the exact cost of your business venture.

For company formation in Dubai, it is advisable to look for exact cost before you say yes. Besides your business investment plan, there are certain operational costs required in the country. Entire cost truly depends on the business activity and the opted jurisdiction, as it varies from free zone, mainland to offshore. Business license, approving trade name, government certifications, drafting of the contract, Department of Economic Department Fee (DED Fees), visa and immigration are some of the important business setup costs.

3. Have knowledge about Business law of UAE.

The UAE government is very serious about the legalities, agreements, paperwork and documentation. So if you are a foreign investor make sure to complete your paperwork without any delay as it can make you pay a heavy penalty. For the smooth beginning of your business in the UAE, make sure to have knowledge about the rules and regulation of the place.

4. Know the local culture of place.

Culture is the one thing that enables marketers to create greater engagement, relevance and grow their business. Dubai is the city with stylish outlook, but there are certain cultural circumferences which you need to take into account while starting your business. The more you get familiar with local culture the greater is the chance of having potential customers. After making your mind to start a business in the UAE, try to recognize and understand the culture of the place. For successful setup in any country, you need to respect and adapt cultural boundaries of the place.

5. Know your customer needs.

For setting up a business venture at any place first take a heed towards market competition. This will help you to know market scope of product or service that you are planning to launch. The best way to get knowledge about market saturation is research or survey, for which you can even hire professionals. After research results, you can easily design your product or service in accordance with customer needs. Knowing and understanding costumer is at the center of every successful business. Once you have this knowledge, you can use it to persuade potential and existing customers.

If you are thinking for business setup in the UAE, be sure to check the above requirements and worry more about your business than about your competitors. Good luck and work hard!