People usually have questions when they have chosen UAE to start their business in. Granted, there are quite a few things that you would need to be clarified first before making the first step in having a business setup in UAE.
Since it is not advisable to simply dive into a venture without that much information in hand, you should look for trusted business setup consultant in UAE. However, you can have some of your questions answered after the jump.
Answers to 8 Common Questions
1. What is the difference between a Mainland and a Free Zone company?
A company established in the mainland is basically a limited liability company (LLC). They can operate in the country and trade internationally. There are a number of benefits in starting a business in the mainland. However, one con is that you’ll need a local sponsor who will have 51% of your company.
On the other hand, Free Zones were made by the government to support its goal to increase its import and export trading internationally. Industry-specific free zones in the UAE make them unique as they cater to the requirements of certain industries for them to support those companies with what they need. A plus side that free zones have, and what investors look for, is that they offer 100% ownership.
2. Which should I choose: Mainland or Free Zone?
You cannot simply jump into choosing to business setup in a free zone or mainland because of certain benefits that you think will be good for your business. You need to ensure that your chosen location will allow the business activity that you will perform. Also, you need to consult business setup consultant in Dubai, UAE who can help you decide as they will give you the right information where your business will thrive and be best suited.
3. Is it possible to set up a business in the UAE without being there?
You can choose to set up an offshore company in some places in the UAE. Technically, you’re setting up a legal business entity but you will need to operate outside the country.
If you want to operate a business inside the country, some may allow that you wouldn’t live in the country but most of them require a resident General Manager.
4. Is it a requirement to have an office?
It is a requirement to have a physical address in UAE, yes. However, there are some locations or free zones that will not require you to have an office space.
5. Does being in a free zone also have limitations?
Everything has its advantage and disadvantages. In this case, although free zones have a lot of pros, there are also cons to it. Some of the disadvantages that you may encounter in being a free zone are the following:
- Companies in free zones are not allowed to trade directly with the market in the country. They will need distributors who are appointed locally.
- There is customs duty of 5%.
- Employees have to work only from the company’s offices within that Free Zone
6. Does it take long to a business setup in UAE?
The time that it takes to conduct a business set up in Dubai UAE depends on a lot of factors. First, it depends on if whether it will be formed in the mainland or free zone. Second, it will also depend on which Emirate the mainland or free zone belongs to. Third, it will depend on how fast you can produce and present the needed documents. Fourth, it will also depend on your business setup consultant in UAE if they are good at doing their job. There can be other reasons as well, and it can be best discussed with your agent.
7. Is having a residence visa important after setting up a business?
This will also depend on which location you choose to start your business in. In most locations, the appointed general manager of the company needs to have a residence visa and be in the country every six months.
Leading Business Setup Consultants in UAE
FAR Consultants has been in the industry for more than 30 years. We have helped a number of businessmen and investors to set up their businesses in the UAE and in the neighboring countries. With our experience, we can assure you that we only provide quality service to our clients.
Whatever dilemma you are facing, we have just the right solution for it. Our team has worked together and will always do for the best results for our clients. Whenever and wherever you need it, we can provide you the right information and that you may need in establishing your business.
Contact us and book a consultation today for you to find out how we work for you to reach your dream of having your business set up in UAE.