- October 17, 2016
- Posted by: aon
- Category: Blog
Understand the 3 Major Aspects for Establishment of Company in UAE
For an ambitious entrepreneur, Dubai is considered as a lucrative business destination. With strategic location and easy business policies, establishing your company in this Emirate can put your business on the fast track to success. When it comes to setting up your business here, there are a lot of options available. To help you navigate these options, here is a list.
1. Choose the right activity
When setting up your business in UAE, you need to choose the right business activity from the very beginning. This is because you need to get a trade license prior to starting the business, on which the business activity you have undertaken is mentioned. The activity cannot be changed in future when other opportunities may arise. Hence, it is important to have a good plan and choose the activity as per your needs.
2. Select the right type of company
To establish your business in UAE, there are three different types of options.
a) Local LLC
If you want to supply goods or services in Dubai’s market, you need to opt for LLC company formation in Dubai. You will also require a local LLC if you plan to rent an office or a warehouse in one of the malls or a location outside the free zones. Local LLC will always be in partnership with a native shareholder who possesses 51% of the shares.
b) Free Zone Company
If you want be the sole owner of your business, you must consider setting up your business in Dubai free zone. Establishing your company in free zone means that you can do business only from this zone. Also, you can rent an office or a warehouse only inside this zone.
c) Offshore Company
With an offshore company, you are not allowed to conduct business dealings in Dubai. Though, you can use UAE as a base to do business in other parts of the world.
3. Running a business in Dubai
Unlike other parts of the world, you will experience a sense of freedom when planning a LLC company formation in UAE. You don’t have to worry about VAT or income tax. Besides, the money you make will all be yours, a big reason why a large number of foreign investors prefer to establish a company in Dubai. There is an ample number of business opportunities available in this emirate.
These are some of the options that will help you take the right decision. All the three types of companies mentioned above offer certain advantages to the business. Apart from this, Dubai enjoys excellent infrastructure and investor-friendly policies that makes it highly popular among business owners & investors. Besides, it offers a perfect business environment to inbound international businesses and enables quality, efficiency and top-notch services. Over the last few years, it has emerged as one of the most sought-after destinations for establishing business across the world.