The United Arab Emirates boasts top-tier business infrastructure and capable regulations. As a result, it attracts entrepreneurs from all corners of the globe.
The capital Abu Dhabi is the second most populated city, offering a lot of benefits. Hence, it is a significant spot for business setup in Dubai. This city is ideal for both commercial and recreational companies.
Why Should you Start a Business in Dhabi?
No Corporate or Personal Tax
Abu Dhabi has a complete absence of taxes. There is no corporate tax for companies at federal or emirate level. But, businesses with international bank accounts are levied a certain amount. When it comes to personal income tax, new branch entities can take advantage of the absence.
Limitless Employment Visa
The United Arab Emirates has a trouble-free employment visa process. Individuals can use tourist visas to actively look for employment opportunities. The pending release of the employment visas will be removed once they get employed successfully. Most importantly, you should note that it is illegal to work in the UAE without proper employment papers.
Necessity of Minimum Capital
As per UAE companies law, you do not need any minimum share capital. However, your business setup in Dubai needs adequate capital to accomplish the goals with equal shares in value. You also need not to deposit the capital into a registered bank of the United Arab Emirates.
Minimal Import Duty
Generally, goods and commodities entering the UAE via air, land, or port are subjected to 5% of import duty from the total value. There are also custom duties that companies need to be aware of when they are looking to engage with import activities. However, Abu Dhabi comes under the free-trade zones that are cleared from taxation.
Lack of Annual Audits
When you set up a corporate entity in mainland Abu Dhabi, you are not required to be audited annually. But, there are specific jurisdictions to this rule, as free zone authorities often audit in compliance to rules and regulations.
You can find a lot of affordable office spaces in Abu Dhabi for renting. This gives businesses the flexibility to choose the ideal office space without any financial constraints. You are most likely to be charged based on the Average rent per square feet.
Starting a New Business in Abu Dhabi
Choosing Abu Dhabi for business setup in Dubai is a beneficial decision that will reward you in the long run. You will get great flexibility and assistance from the city to succeed with your establishment.
Determine Your Finance
First, it is essential to determine your business activity. This will help you ensure the required finance and understand the requirements. The type of business activity you choose will also decide the licensing you need. As a result, you can focus on the setup without any hindrance.
Get a Local Sponsor
The UAE jurisdiction requires you to have a local sponsor for your company. This local sponsor will help you facilitate the licensing without any liability. You must also consult with local business experts to meet the requirements of your sector.
Trade Name Registration
It is crucial to register a trade name for your business setup in Dubai. The Department of Economic Development will provide you with a list of registered trade names. You should choose one name for your business from this list. Once registered, no other entity cannot use your name.
Secure the Initial Approval
As a foreign entrepreneur, you must get approval from the General Directorate of Residency and Foreigners Affairs. You should also meet all the concerned officials and get approval from them. Some businesses require special approvals which are permitted by specific authorities.
The range of benefits offered by Abu Dhabi makes it the perfect place for your business setup in Dubai. Any informed investor will be ready to establish an entity in Abu Dhabi without any hesitation. Once you understand these benefits, the next step involves understanding the requirements and legal concerns. Ensuring compliance during this step will help you start a business without any complications. For further assistance, you can contact reliable professionals to become well-versed with the legal system and get more information.