Entrepreneurship: Why the UAE is the right place for you.
The road of entrepreneurship can be full of trials and tribulations. The United Arab Emirates sees many new business owners relocate here as it can provide a smoother road with more opportunity for growth and success.
Whilst, like many places, the UAE still has certain restrictions on expats who are looking to start their own business, they also offer many positive opportunities.
For example, expatriates have easy access to the local currency and there are no exchange controls set in place currently.
In this blog post, we will be discussing all of the possible advantages that the UAE has to offer to entrepreneurs around the world.
We will be covering:
Residency visas
If you are thinking about relocating yourself and your new business to the United Arab Emirates, you will have to think about acquiring a visa.
A visa will specify the reasons you will be staying in the country and what your intentions are whilst you are there.
If you acquire a residency visa through a free-zone company setup, then you will be able to use it for up to three years. This allows plenty of time for new business owners and entrepreneurs to start their company.
Additionally, all business owners are required to hire local and foreign staff. With your employees that have relocated, they will also need visas. There are plenty of provisions currently put in place to help you with this.
However, if you are self-employed or are looking at doing more freelance work, there are different routes you can take.
The freelance visa is a licence which will be issued by the TECOM group and it will allow you to work as an independent party. These types of visas are renewable each year and it means that you can operate as a freelancer.
Tax-free zones
Once you have determined the type of legal entity, chosen your trade name and applied for your business licence, you can start thinking about the location of your business. Dubai’s currency, the Dirham, has remained extremely stable and strong. Its value has barely fluctuated in comparison to other currencies such as the Euro and the US Dollar.
So what is the UAE free-trade zone?
A free trade zone is an economic area where goods and services can be traded. These are usually traded at preferential tax or custom rates.
Below, is a list of all of the Free-Zones across the UAE:
These Free Zones are great opportunities for new businesses. It means less overall start up costs and gives your company more room to grow and succeed.
Business license options
Relocating to the UAE and starting your entrepreneurial journey, is a common path which most young business owners take.
One of the main reasons for this, is that the United Arab Emirates offers different business license options.
There are three primary types of licenses which you can apply for.
Firstly, there is Commercial Licensing. This can be issued to a company that will be engaging in any type of trading activity.
Secondly, there is a Professional License. Again, you will have to apply for this and wait for it to be issued before you start trade. This license is a little different from the commercial one. It will be issued directly to the service provider, professionals, craftsman and artisans.
Thirdly, and finally, is the Industrial License you can apply for. This will be issued to a company that will engage in any industrial or manufacturing activity.
However, if you are looking to do freelance work, you will have to look for a Freelance Permit.
A permit or license will cost you, the business owner, around 15,000 AED to 50,000 AED to be able to trade freely in the United Arab Emirates.
So, how do you apply for these permits?
Each type of business proposal, you will need to approach different branches of the UAE government.
For example, If you are looking to open a bank or another financial institution, you will have to be approved by the UAE central bank.
However, if you plan to manufacture goods, then your licensing will be assessed by the Finance and Industry Ministry.
For medical and pharmaceutical products, you will have to go to the Health ministry, for a generic business model, you will have to seek involvement with the Dubai Chamber of Commerce Industry.
Location, location, location
Finally, the United Arab Emirates is an amazing location to conduct any business, let alone start a brand new company.
As well as the year-round sunshine, long beaches and access to some excellent shops, the UAE is also full of opportunities due to its location.
It’s perfectly positioned for entrepreneurs who need to travel and want to grow their business. You can be anywhere in Asia, Africa or Europe in under eight hours. In Dubai, one of the Emirates, their airpot is a really busy location with regular flights going to and from these destinations.
This makes it the perfect destination for entrepreneurs who are looking for new opportunities across different countries.
If you need any advice when it comes to relocating yourself, your new business or starting completely from scratch, we can help. Contact us right now to get some more information.
