Starting business in UAE in 2020
Have you started thinking of opening the business in the UAE? Today, UAE has become one of the most attractive jurisdictions in the world due to a few reasons:
- Convenient location for doing international business
- Flexible banking system
- Full repatriation of your money abroad
- Possibility to become a full-time UAE resident
- Zero taxes on corporate income and personal income
UAE has a lot of business registration authorities and being similar one hand, they all have something different in store on the other hand.
If you are new in this country and don’t know which authority will suit your business most of all, go ahead and hire business setup consultants in Dubai.
They are the experts who will give you an overview of:
Business setup in UAE - pros and cons
The greatest advantages of company registration in the UAE are the following:
- UAE is a whitelisted jurisdiction with a good choice of registration options
- Banking in UAE is stable and banks belong to the government
- UAE is not an offshore haven - it is a real economy which produces its GBP by tourism and foreign investments apart from the oil trading
- UAE has all the facilities for businesses - business centers, offices, developed transport system and 2 large airports
- A transparent business environment where you know how much your annual expenses are
Some of the disadvantages could be there as well:
- Restrictions on certain types of businesses, for example, cryptocurrencies trading
- Some nationalities are considered high risk and have certain difficulties in obtaining UAE residency
- Bank account opening is a bit slow for some types of companies such as offshore and a few free zones
Doing business in the UAE - costs
UAE has various types of business registration available and of course, the prices are not the same.
The fees start from 3,000 USD for a RAK offshore company and go as high as 18,000 USD for Dubai free zone company registration.
There are multiple options in between, so this country would suit any type of budget.
The difference of the prices comes from a few factors:
- Location of the business registration
- Whether your company is eligible for resident visas or not
- Prestige and advantages of a certain free zone
UAE residence visa cost
The price of your resident visa cannot be considered as a standalone expense. The visa has to be opened under a company. So if you are registering the business in order to open resident visas, the business setup costs can be counted as your UAE residency costs in a way.
Nowadays the cheapest package to get UAE residence visa is a company set up in Ajman Free Zone. This zone has 2 attractive packages: Pioneer and Freelance. Pioneer is designed for young entrepreneurs from 20 to 30 years old, whereas Freelance would suit anyone.
For example, if you open a Freelance package, your total costs including the visa fees for 3 years will be 16,000 AED or 4,385 USD.
The package has to be renewed annually for 6,100 AED (1,670 USD).
Once you have the visa, you may choose to live in any Emirate regardless of the one where your visa was issued. Go either to quiet and peaceful Fujairah or Ras Al Khaimah or opt for dynamic Dubai or Abu Dhabi.
Business in the UAE is not only your way to the global markets but also a tool to become a resident in this amazing country.
Perfect weather for 8 months is a year and attractive business facilities won’t leave you indifferent. Come and check it out and you would never want to leave the UAE anymore!