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Setting up a business in the UAE: All You Need to Know

Knowing that the UAE has a favourable and appealing tax law, both for income and businesses, it is no wonder that many investors have been flocking to the Emirates to start their business journey. While it is a very exciting opportunity, it is essential to understand what are the key steps, requirements and even the country’s regulation before diving in. The first thing to consider where you want your business to operate. The UAE offers several options which are Mainland (Dubai), Free Zone, and Offshore, all of which has its own set of regulations, benefits, and limitations. Take this as an example, Mainland businesses can trade directly with the UAE market but may require local sponsor, while Free Zones companies offer 100% foreign ownership but are restricted from direct local market trade.

Apart from selecting the right place to best operate your business, legal requirements and approvals are another important part of the process. Starting a business is not just putting it out there. It involves several legal steps. It requires registering your trade name, obtaining initial approvals, and drafting a Memorandum of Association (MOA). It does not stop there. You will also need to select a business location and get additional government approval for that. You also have to understand the licensing process. There are different types of licenses available such as commercial, industrial, and professional and your selection depends on your business activity.

Taxation and compliance are also important factors you need to consider. While it is 100% tax free on the income tax, the UAE has introduced corporate tax and VAT, which are both mandatory for companies to comply with to avoid penalties. Making sure that your company complies to these tax regulations is very important for a seamless operations. Moreover, getting yourself familiar with the local culture and market dynamics can give you a competitive edge. Building relationships and networking are also essential for business success in the UAE. The good news is, there are companies who can assist you navigate the intricacies and technicalities of business setup. Companies like Vigor will take the stress off your hand so you can focus on formulating your strategies to effectively position your business in the market and set it up for success

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