Starting a business in the UAE in 2022
Favorable conditions are being created in the Emirates for the start and development of entrepreneurship of any scale and direction. The Government of the country equalizes the rights of local residents and foreigners when conducting commerce. This significantly expands the opportunities when starting a business in the UAE.
Specific features of the economic space
There are 7 independent entities in the state. The Law on Business Companies approves the rule that the Emirates can independently regulate business issues based on local regulations.
Persons wishing to register a business in the UAE must take local legislation. into account. Additional criteria for evaluating foreign entrepreneurs may apply in the subjects.
Persons wishing to register a business in the UAE must take local legislation. into account. Additional criteria for evaluating foreign entrepreneurs may apply in the subjects.
The algorithm for starting a business in the UAE
Starting a business in the UAE for Russians and residents of the CIS countries involves the following actions.
Search for a suitable emirate and registration options
Before relocating or opening a foreign representative office, you will need to study the legal norms in force on the territory of the selected emirate. Articles and paragraphs related to the organization of enterprises by foreigners are of the greatest importance.
The company opens directly within the UAE. If international activities are planned, it is worth registering in the Free Economic Zone (FEZ). After you become a member of the business society of the UAE, you can take advantage of the following bonuses:
Among the available forms of organization when registering a business in the UAE, there are:
A legal entity may have one or more founders. Registration of branches and subsidiaries is allowed.
The company opens directly within the UAE. If international activities are planned, it is worth registering in the Free Economic Zone (FEZ). After you become a member of the business society of the UAE, you can take advantage of the following bonuses:
- Favorable taxation regime, free distribution of financial flows.
- Positive attitude of immigration services, financial and regulatory structures.
- The possibility of renting or purchasing real estate.
- Participation in large tenders.
- Unlimited export.
- Commerce in the Persian Gulf countries with the use of a single customs zone.
Among the available forms of organization when registering a business in the UAE, there are:
- Commerce (investment, sales, construction of facilities).
- Production (manufacture of machinery, medicines, food).
- Provision of services.
A legal entity may have one or more founders. Registration of branches and subsidiaries is allowed.
How much does it cost to open a company in the UAE?
Possible options for registering a business in the UAE
Registration of a company in the UAE with obtaining a license
$3000
Obtaining a resident visa
$1300
Opening a bank account
$3000
Registration of the license
In the United Arab Emirates, any commercial activity is carried out after official approval by the authorities. The licensing document has a validity period of 1 year and is subject to renewal. This paper prescribes:
The license is recognized as a control tool and proves the professional readiness of subjects to provide services or produce goods. A permit is issued to work in a particular emirate or several subjects of the country. Non-compliance with the territorial boundaries indicated in the document is regarded by the authorities as illegal activity. Such violation of the rules entails penalties.
- The date of creation of the organization.
- Place of registration.
- Full name of the managers.
- Types of activities.
The license is recognized as a control tool and proves the professional readiness of subjects to provide services or produce goods. A permit is issued to work in a particular emirate or several subjects of the country. Non-compliance with the territorial boundaries indicated in the document is regarded by the authorities as illegal activity. Such violation of the rules entails penalties.
Selection of a place for registration
To open a business in the UAE, entities need to obtain an official legal address. The exception is offshore international firms. A businessman will need to rent a room or an office. To organize commercial activities, you need an object with a size of 19 square meters.
Opening a bank account
A business is considered invalid if the company does not have a corporate account. It is required for the implementation of operational activities. Foreigners can open accounts in local banks and representative offices of foreign banks. Organizations do not impose restrictions on operations and guarantee confidentiality.
Accounts are opened for entities with a resident visa. The bank needs to document the financial situation and professional competencies.
Accounts are opened for entities with a resident visa. The bank needs to document the financial situation and professional competencies.
Registration with the UAE tax authorities
All organizations with a turnover of $50,000 or more operating in the United Arab Emirates receive a taxpayer number or TRN. The Tax Service accepts reports and issues tax invoices. Individual business lines are not subject to VAT. In this case, the subject applies to the fiscal service and submits an application to the authority on the absence of grounds for paying tax.
Visa processing and recruitment of employees
Shareholders of the company can obtain a resident visa through the Immigration Service. The document is considered valid for a 2-year period. If the company is registered in the FEZ, you will need to submit an application to the administration of the selected zone.
If an entrepreneur plans to hire foreign employees, employment cards are issued for them. They are used to get a quota for hiring staff. An entrepreneur enters into an employment contract with employees. Visas can be obtained for specialists. If the company employs employees of different genders, it is necessary to provide separate workplaces and restrooms.
If an entrepreneur plans to hire foreign employees, employment cards are issued for them. They are used to get a quota for hiring staff. An entrepreneur enters into an employment contract with employees. Visas can be obtained for specialists. If the company employs employees of different genders, it is necessary to provide separate workplaces and restrooms.
Acquisition of tax resident status
Individuals or legal entities can have this status. With its help, owners of firms and real estate in the UAE are protected from possible double taxation. To become a resident, you will need to confirm:
- That the Emirates is the management center of the enterprise.
- Availability of license documentation.
Who will help to start a business in the UAE?
Our professional team provides support in registering and doing business in the UAE. We help you to adapt to the new conditions of entrepreneurship quickly and get the maximum benefit. We offer transparent mechanisms of business formation with full compliance with the current legislation of the country.
We provide high-quality and quick support in tax registration, opening accounts, obtaining licenses and visas. We help to optimize expenses; we are engaged in qualified support. We provide support in the registration of staff and interaction with officials in the UAE. We monitor the latest amendments to the laws for timely implementation in the work of a legal entity.
We provide high-quality and quick support in tax registration, opening accounts, obtaining licenses and visas. We help to optimize expenses; we are engaged in qualified support. We provide support in the registration of staff and interaction with officials in the UAE. We monitor the latest amendments to the laws for timely implementation in the work of a legal entity.
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