Misconceptions about business in the UAE
The current situation in the economy has caused another surge of interest in entrepreneurship in the UAE, as one of the most promising in the new reality. Many people are seriously thinking about starting their own business here. This country attracts with a well-thought-out tax policy, a stable political system, a reliable banking system and a high standard of living.
Russian businessmen are also attracted by the absence of sanctions, as well as the presence of a pool of Russian-speaking specialists. At the same time, doing business in the UAE has its own nuances, which should be known in advance. Therefore, before we talk about this, it is necessary to dispel several misconceptions that have developed around this topic.
Russian businessmen are also attracted by the absence of sanctions, as well as the presence of a pool of Russian-speaking specialists. At the same time, doing business in the UAE has its own nuances, which should be known in advance. Therefore, before we talk about this, it is necessary to dispel several misconceptions that have developed around this topic.
Doing business in the UAE is cheap
It seems that everyone will be able to do business in the UAE, due to the lack of tax fees. However, this is not really the case. In the UAE, certain investments are needed to open a company. And although there are no taxes here, the expense item will include:
RECOMMENDATION: Before starting your business, decide in which free zone and emirate you want to start a business.
- annual fees for the company's license;
- office space rental;
- visa for all employees and other expenses.
RECOMMENDATION: Before starting your business, decide in which free zone and emirate you want to start a business.
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It is difficult for a foreigner to open a business in the UAE
Opening, as well as doing business in the UAE, is much easier than in the USA, Great Britain and many other countries of the world. The Government has made these procedures as easy as possible. Today, 50 free economic zones have been opened here. Each of them strives to attract as many entrepreneurs as possible, creating comfortable conditions.
Many of those who want to do business in the Emirates are held back by paperwork. The easiest way to dispel this misconception is to talk to those who have experience in these matters. Contact us to open a business in the UAE! We will take care of visa processing, opening bank accounts, and, if necessary, accounting services for the company.
Many of those who want to do business in the Emirates are held back by paperwork. The easiest way to dispel this misconception is to talk to those who have experience in these matters. Contact us to open a business in the UAE! We will take care of visa processing, opening bank accounts, and, if necessary, accounting services for the company.
You can take everyone's word for it
You should not rely only on words. Don't believe what you are told. All information should be carefully checked for authenticity and rechecked several times, regardless of who told you this: civil servant, service provider or business partner. Do a simpler thing – consult with those who have been successfully working in the UAE for a long time.
They won't accept strangers there. Only locals can do business in the UAE
People of different nationalities and faiths work in the Emirates. So, if you speak English, they’ll consider you to be local. Websites, television, documents and doing business in the UAE are mostly in English.
A typical resident of the Emirates is a visitor who speaks English and respects the customs and traditions of others. Even the local Arabs are the "citizens of the world" who were educated in Britain or the USA.
A typical resident of the Emirates is a visitor who speaks English and respects the customs and traditions of others. Even the local Arabs are the "citizens of the world" who were educated in Britain or the USA.
There are no free niches and markets in the UAE
The opportunities for entrepreneurship in the Emirates are truly limitless. Of course, there are markets and niches with high competition. However, even there you can find your place in the sun if you offer customers quality and service at least at the level of competitors. In other markets there is a quite favorable business environment.
There are no qualified employees here
As already mentioned, the majority of the population in the UAE are newcomers. Filipinos and Indians hold entry-level positions. The positions of middle managers are most often taken by Egyptians, Lebanese and immigrants from the post-Soviet space. Americans, Britons and citizens of the UAE occupy the leading positions. There are plenty of professionals here, and even so, the selection here is quite tough. Up to 2 hundred resumes come per day for one vacancy in Dubai.
Company registration will take 2-3 days
With a favorable outcome, you can open a company in a week, while you will be able to start full-fledged work only in a month. The fact is that the founders undergo a special check. And if you need to get a license from the government agencies of the UAE, then the registration of the company can take 3-6 months.
For the record. You can open a business in the UAE in a matter of days. For example, in neighboring Dubai. If you prefer to work only with an address in Dubai, then you will have to wait. As a result, Dubai will be indicated on your license.
For the record. You can open a business in the UAE in a matter of days. For example, in neighboring Dubai. If you prefer to work only with an address in Dubai, then you will have to wait. As a result, Dubai will be indicated on your license.
You can't open a company without a local co –founder
Indeed, to open a retail chain of stores, you need to sign a partnership contract, according to which 51% of your company will be conditionally owned by a local resident. However, he will receive only the agreed amount for his services, and not half of your money.
There are options in which the company will be entirely owned by you. To do this, it is enough just to register a legal entity in one of the free economic zones. You can also get a professional activity license, but here you need to prove that you are a professional in your field.
There are options in which the company will be entirely owned by you. To do this, it is enough just to register a legal entity in one of the free economic zones. You can also get a professional activity license, but here you need to prove that you are a professional in your field.
It's easier to buy a company than to open a new one
A ready-made offshore company can bring you a lot of problems. Therefore, it is better not to purchase ready-made licenses, but to open a business in the UAE from scratch. The only exception is when you buy a profitable company. However, it will take some time to check it. The company may have financial obligations that are not recorded in the documents.
Summing up
We hope we were able to expose some of the most popular misconceptions, and you learned about some of the features of business in the UAE. However, before starting your own business, talk to people who already have some experience in this field. They have already plunged into the world of international business; they know how to stay afloat among ambitious professionals.
Our company's specialists are ready to assist in opening a business in the Emirates. We will take care of all legal issues, having previously assessed all the chances of your project and possible risks.
Our company's specialists are ready to assist in opening a business in the Emirates. We will take care of all legal issues, having previously assessed all the chances of your project and possible risks.
5 mistakes when starting a business in the UAE, which cannot be corrected
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