Recognized as one of the pioneer destinations for the corporate world, the ground of the United Arab Emirates has been continuously rising in the eyes of global investors and business-fantasist. There has been a continuous rise in the business establishment process that has lifted the economy to the next level. Being an oil-based economy, the region has successfully raised itself to excel in the non-oil sector. From a start-up to a fully established business, the region of UAE has turned up to be a home to all types of business entities. According to the projections of the IMF, the region of UAE is expected to grow by 2.4% in the year 2019, which means that the corporate opportunities have been widened. If you are a business owner who holds a plan to start a business or invest in a foreign land, then Dubai is the perfect ground for you.
The Revolutionary Growth of UAE
Holding a position as the second-largest economy in the Middle East, the economy of the United Arab Emirates was known to dwell in the oil reserves, which stood as a significant indicator. Back in 2009, more than 85% of the economy was dependent on oil exports. The visionary leader Mohammed bin Rashid Al Maktoum has been continuously working towards the development of the economy by tapping into the non-oil sector to maximize revenue sources and explore the opportunities available. Specific business sectors that have been played an exceptional role to lift the region’s economy are highlighted below:
- Food and Beverage
- Transportation and Logistics
These sectors are the booming business domains that the global investors target to set up their business in the UAE. Now, let’s get a gist about the growth of the region over a couple of years.
You can see that the graph stands as a progressing one, revealing the fact that the region has been able to maintain its level in-spite of facing depression in 2016. In the year 2018, the GDP figure stood at $414, 179 million, which made the nation to grab the 30th rank out of 196 countries. According to the Doing Business survey 2019, the UAE holds the 11th rank in the ease of doing business. The government has been trying multiple ways to accelerate the business establishment scope in the region. The continuous implementation of various strategies has been successful in grabbing the attention of international investors to come forward and set up their business. This stands to be the perfect time to establish a business in the UAE because the World Expo 2020 is one the way, which looks like a business collaboration destination. Now, you must be wondering how to start a business in UAE. Well, your answer lies below.
How to Start a Business in UAE?
To start a business in the UAE, one needs to go through the following actions:
1.Be Clear Regarding the Business Activity
The first thing is that you need to be clear regarding the business activities that you are planning to provide. You being an owner or investor must have a blueprint ready that depicts the business activities to be carried out. Drafting a business outline will help you to understand the steps that you need to take, and you will get a clear idea regarding the present and future steps.
2.Select the Business Entity Type
The region of UAE holds numerous business entities based on financial availability. You need to select the best business entity based on your financial scenario of your business and the number of shareholders available.
3.Select a Name for your Company
Next, the critical task at hand is to select a unique name for your business. It would help if you made sure that the name chosen may shouldn’t be offensive or illegal in the eyes of the law. Take your time and select a name that can grab the audience.
4.Find a Strategic Location
The location turns out to be one of the key factors that drive a business to generate more revenue and spike up the profits. Make sure to select an area where your target customers are available, and it turns out to be feasible for them to approach you.
5.Get the Paperwork done
You must be ready with the essential documents that need to be submitted to the Government entities. Some of the essentials that are expected to be at hand are highlighted below:
- Duly filled and signed application regarding company registration
- Passport and visa copies of the shareholders
- Memorandum and Articles of Association of the company
- Blueprint of your business
- Copy of tenancy contract
- Trade name certificate
- Approvals from the relevant government authorities
6.Find a Local Sponsor
The next move is to select a local sponsor, which is a must if you are planning to set up your business in UAE Mainland. It is recommended to go ahead with the corporate sponsor instead of opting for an individual sponsor since they turn out to be more feasible and trustworthy.
7.Apply and Obtain Business License
The region of UAE has got different business licenses for every business industry. The owners or investors are expected to obtain these licenses that act as a legal permit to operate the business activities. To know more about business licenses in UAE, click here.
8.Get a Corporate Bank Account Registered
To deal with the business transactions smoothly, you need to deal with a corporate bank account. Holding a separate business bank account turns out to be beneficial as you can keep a track on the business finance and the financial stability of your firm.
9.Get Your Visa
Last but not least, you need to get hold of an investor visa if you are planning to settle your business in the UAE. In case, you want to deal with global hiring, and you need to issue employment visa after the hiring process.
Thus, you have seen the complete process and the scenario that helps you to get a transparency on the business establishment proceedings for your firm. The full set of tasks to be carried out turns out to be complicated, and also turns out to be tedious. Now, getting involved in the process on your own might turn out to be difficult as it involves certain legal proceedings that need to be abiding by. The smart option that business owners prefer is to join hands with business experts who are well-versed with the legal documentation and incorporation process.
Commitbiz Consultants stand as one of the best business consultancies in the UAE who has been providing the best business incorporation processes to numerous clients located in UAE, Oman, Bahrain and Qatar. Our business guides are well-versed with the proceedings and can provide tailored solutions suiting your business needs. In case you hold any query, do get them clarified by having a word with our experts. Contact us today-we’d be glad to assist.
What is the expected growth rate of the UAE?
6.2% growth in 2022.
What is the expected growth of GDP IN 2022?
5% in 2022.
What are the imports in the UAE?
Gold, broadcasting equipment, refined petroleum, diamonds.
What is the reason behind the UAE’s economic development?
Substantial financial reserves
A sizable sovereign wealth fund
Attractive investor home economies
Steady government expenditure
Progressive economic diversification policies
Which is the primary sector for the UAE's economic development?