‘The only source of knowledge is experience’….Albert Einstein
UAE is recognised by the World Bank as world’s 11th easiest place to carry out business in 2019. This is a result of the ease with which business can be setup and reflects the UAE’s judicious systems improvements. The prudent leadership of the nation has prioritized ease of setting up to attract businesses, businesspeople and funds.
Price Waterhouse Coopers, one of the Big 4 consultancies states that the Middle East region’s simple and least demanding tax systems are a primary reason attraction of foreign investment into the region. To cater to this interest, the UAE economy boasts nearly 40 types of business setup models. Nearly 30 of them are in a free zone area which permits full or majority foreign investment. The would-be investor is spoilt for choice. Choosing the right business setup model is key to founding a successful venture and this is best undertaken by relying on the guidance of an experienced consultant.
The nature of business ownership, extent of liability and involvement of UAE nationals or partners are among the key differences in the different business setups. From recognising the need to hold a mainland license vis-a-vis a free zone, a business setup consultant’s advice is essential. Each type of business setup has its costs listed on the Federal government’s website in a transparent manner. Each online cost sheet is focused on attracting the right investment. However, it doesn’t necessarily list the charges that are expected to escalate over time nor does it mention restrictions that may be imposed. A trusted business setup consultant would not only list the different methods of obtaining the operating a license but also take responsibility of advising on the right license related to a particular business based on its feasibility as well as benefits and risks that will accrue over time.
With an independent business setup consultant, investors can concentrate on their core competencies of acquiring and setting up smooth business operations. Depending on the nature of the business activity, business setup consultants can be unbiased while suggesting the benefits of each different UAE business licensing mechanism. A key element is the list of activities permitted on each business license type for various nationalities. While GCC nationals are permitted to hold all classifications of professional and commercial business operations, there are a few exceptions for others.
The work of the consultant begins even before the licence process is initiated with a feasibility study on the proposed business to be set up. A clear picture of the market, competition and trends along with projections of revenue and cost offer the investor the right perspective on the investment, expected returns, break-even timelines and other invaluable data.
Upon concluding the licencing process, there are many other services a new business requires that are offered by reputed business consultants. Advice on legalities, trademark, intellectual property applicable in the UAE, for example, is invaluable to the investor coming in from other geographies.
Most of the country’s successful businesses coming from other geographies have benefitted from the experience of reputable business setup firms. The cost of engaging these services is minimal compared to the risks involved in making blunders.
For detailed information, professional advice, and cost-effective assistance to start a business in Dubai or anywhere in the UAE. Contact us today!
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