If you are planning on starting a business in Dubai, there are several options open to you. You may decide to start up your own venture, or you may purchase an already existing business.
An existing business would likely have a clientele, a reputation, and networks in the marketplace that a new business would have to build from scratch. As a foreign investor, you would want to start making money from the business in a shorter lead time, and acquiring a business in Dubai would help you do that.
Shelf Companies are those that have been incorporated but are not engaged in any specific commercial activity. These have been merely left to age and are ready to be acquired by a foreign investor. This option suits those investors who are working on strict timelines that do not permit waiting for registering a new business in Dubai.
A Merger is another option that can work well. This basically entails a company taking over an existing business and becoming the new legal owner of the combined business entity.
If you aren’t sure why you should buy a business in Dubai, then rest assured that with the right assistance, it is a simple and quick process. The idea of transferring the history of a foreign business to a new place is what helps in building your value as a business right from the start. Upon purchasing the business and transferring the shares, the new owner can bring about desired changes to the business.
The zero tax regime in Dubai is very business friendly, and foreign investors prefer conducting business in the free zones in the UAE to avail benefits that free zones extend.
Since there is the involvement of a large number of assets and debts, it is advisable to take up legal consultation from advisors or consultants who can take care of the legal aspects. Once the agreement has been signed, the trade license needs to be amended with the Department of Economic Development. If the original business was foreign owned, then a new Appointment of Local Services Agent contract must be signed and notarized at the Dubai courts.
While acquiring local businesses has become quite popular, it is always advisable to do the due diligence to ensure that compliance is never wavered from at any point.
The cost of non-compliance in UAE is high, so it is best to consult with experts like Commitbiz who have been helping out businesses for years. Contact us to proceed ahead- we'd be glad to take the conversation forward.