The United Arab Emirates encourages and values foreign direct investments, hence its investor-friendly policies. In the 2020 Doing Business report by the World Bank, the UAE scored 94.8 out of 100 and ranked 17th in the starting a business category, further proving that business setup in the UAE is relatively easy.
Of course, being friendly to foreign investors is not enough. A country must also have other things to offer.
Why Start a Business in the UAE: The Whole Package?
The UAE is the whole package. Not only does it have business-friendly policies. It has several advantages that make it an attractive destination for foreign investors.
● Number one on the list is its strategic location. Nestled at the juncture of Europe, Asia, and Africa, it provides businesses with easy and ready access to a vast array of markets on three continents.
In fact, Dubai is within four hours’ flying time of one-third of the world’s population and eight hours of two-thirds. This is why the UAE is an excellent location for traders, distributors, and logistics companies. Imagine being only eight hours away from two-thirds of the world’s population – the possibilities are mind-blowing.
A relatively short flight time to reach 66% of the global population is a necessary but insufficient condition. Supporting infrastructure must also be in place. If a country’s airport cannot handle the cargo traffic, dispatch delays, lost shipments, and other issues will neutralize a country’s geographical advantage.
● The UAE, however, has world-class infrastructure, too. This includes state-of-the-art ports, airports, and logistics hubs.
● The UAE has exemplary political stability arising from its unique political structure. It is an authoritarian federation of seven emirates, and political power rests exclusively with the ruling families of these emirates.
● Another characteristic of the UAE is its safety and low crime rates. Numbeo gives the UAE a crime index score of 15.6 (very low crime incidence) and a safety index score of 84.4 (highly safe). At the time of writing, it is the second safest country in the world, next only to Andorra.
● Additionally, the UAE’s progressive stance on innovation and technology supports a thriving ecosystem for tech-driven industries. At the same time, its diverse economy offers multiple opportunities outside of oil.
● Cultural diversity and a welcoming expatriate community further enhance the UAE’s appeal. The country is home to more than 200 nationalities, making it a top choice for foreign investors in search of a dynamic, welcoming business environment.
● Another incentive is having various visa options available to foreign investors. In Dubai, the Taskeen program allows foreign investors who own property valued at AED 750,000 at purchase to apply for a two-year renewable residence permit for themselves and their family members.
Furthermore, the UAE has a golden visa program that applies to foreign investors who own property in the UAE. It grants you a renewable five-year golden visa or residence permit if you own property or properties (cumulatively) worth at least AED 2,000,000. If the property or properties are mortgaged, you must have proof of at least AED 2,000,000 paid-up equity and a no-objection letter from your bank.
Note that in Dubai, foreign investors who meet the real estate ownership conditions set forth above get a 10-year golden visa.
● Finally, foreign investors benefit from a high standard of living, modern healthcare, and top-tier education in the UAE. The UAE has hundreds of private international schools, especially in Dubai and Abu Dhabi.
How to Start a Business in the UAE Mainland: Simple and Easy?
The simplest way to start a business in the UAE is to consult a business setup consultant. They will guide you through the necessary steps, help you acquire government approvals, prompt you about the forms you must fill out and documents you must prepare, and file your application with and submit your requirements to the correct government agency.
The following are the general steps you must follow when starting a business in the UAE mainland:
1. Choose a business activity:
Identify the economic activities your business will engage in. This is essential because certain activities require specific approvals.
2. Select a legal structure:
Decide on the legal form your business will take. The appropriate legal form may vary depending on your business activities, and your legal structure will determine which UAE laws and regulations apply to your business. You will definitely appreciate the input from a UAE business consultant at this stage.
3. Register your preferred trade name:
Apply for a trade name with the emirate’s economic department. In Abu Dhabi, this equates to the Department of Economic Development; in Dubai, it’s the Department of Economy & Tourism. Name your business in a way that makes the form and nature of your business obvious, and make sure your trade name isn’t already associated with another business entity.
4. Obtain initial approval:
Get initial approval from the economic department to confirm that, in principle, they have no objection to your business.
5. Obtain an MoA or LSA, if needed:
You need a memorandum of association or a local service agent agreement. Your business consultant will tell you which one applies in your case.
6. Lease an office space:.
Lease an office space or secure your business premises in the UAE. You need the rental agreement, which may need to be attested depending on the emirate.
In Dubai, rental agreements are registered with Ejari.
7. Apply for government approvals:
As mentioned earlier, some business activities require separate approvals or authorizations from specific government agencies. For instance, companies in the telecommunications industry, such as a mobile network operator, an eSIM provider, and an internet service provider, require permission from the Telecommunications and Digital Government Regulatory Authority. General transport entities, such as car rental companies, driving schools, and used car dealerships, require the Ministry of Interior’s authorization.
8. Submit documents and pay the fee:
Once you have all the documents and approvals, submit them to a service center, get a payment voucher, and remit the required fee within 30 days.
9. Collect your trade license:
After submitting your documents and paying your fees – as long as everything is in order – you’ll receive your trade license. This officially establishes your UAE mainland business.
Starting a Business in the UAE:
Business setup in the UAE entails preparing and collecting all the documentary requirements (trade name registration, government approvals, memorandum of association, office space rental agreement, etc.), submitting them to the economic department, and paying the trade license fee. You can collect your trade license and start operating your UAE business if everything is in order.
Disclaimer:
CBD:
Qrius does not provide medical advice.
The Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) outlaws the recreational use of cannabis products in India. CBD oil, manufactured under a license issued by the Drugs and Cosmetics Act, 1940, can be legally used in India for medicinal purposes only with a prescription, subject to specific conditions. Kindly refer to the legalities here.
The information on this website is for informational purposes only and is not a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of your physician or another qualified health provider with any questions regarding a medical condition or treatment. Never disregard professional medical advice or delay seeking it because of something you have read on this website.
Gambling:
As per the Public Gambling Act of 1867, all Indian states, except Goa, Daman, and Sikkim, prohibit gambling. Land-based casinos are legalized in Goa and Daman under the Goa, Daman and Diu Public Gambling Act 1976. In Sikkim, land-based casinos, online gambling, and e-gaming (games of chance) are legalized under the Sikkim Online Gaming (Regulation) Rules 2009. Only some Indian states have legalized online/regular lotteries, subject to state laws. Refer to the legalities here. Horse racing and betting on horse racing, including online betting, is permitted only in licensed premises in select states. Refer to the 1996 Supreme Court judgment for more information.
This article does not endorse or express the views of Qrius and/or its staff.
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