Therefore, before we tell you which business is better to open, it is necessary to develop a number of myths that have developed around this topic.
Attention. By no means do we want to say that doing business in Dubai and the Emirates is difficult and unnecessary. Rather, we want to introduce you to what you need to go through at the beginning of your journey in the UAE. But once you have passed everything, doing business in the Emirates is a pleasure. So, in order.
In the Emirates, this approach should be avoided. All information should be double-checked several times: whether it is information from government agencies, service providers and others. Learn the “Ask three” rule. And if these three people point in three different directions, exhale and accept this cultural feature. Be patient and go find out from a senior in rank. But never rely on what the first person you meet will tell you.
# OPEN A COMPANY IN THE UAE AND DO BUSINESS IN DUBAI CHEAP
Many of us are accustomed to thinking in terms and numbers that are typical for the region where we live and do business. But it must be admitted that doing business in the Emirates has nothing to do with the States, the CIS or Europe. This also applies to the costs of opening a company and maintaining it.
There are no taxes in the UAE, but instead there are annual government fees for a company license, which is already $4,100 per year or more. To this you need to add the cost of visas for employees, office rent and other costs of organizing a business, only if you do not have a virtual office or an offshore company.
# YOU CAN REGISTER A COMPANY IN A FEW DAYS
If you are planning to open a company in Dubai, then you will be able to start work no earlier than in 4-5 weeks. This is due to the fact that all founders are checked through a special system of control of foreign persons. And if, in addition, you plan to rent an office and make repairs in it, or your type of activity involves obtaining additional permits from the UAE government agencies, then we can talk about 3-6 months. But there is a solution.
Therefore, if speed of registration is a priority for you – it is better to choose the northern emirates, if you want to gain prestige and / or work only with an address in Dubai – then it will be longer, but Dubai will be listed on your license.
# BY THE WILD BANK ACCOUNT FOR A COUPLE OF DAYS AND WITHOUT ME
We are used to the fact that a bank account can be opened in 2-3 days, and in some cases even without a personal presence. In the Emirates, the situation is different. If you decide to open an account for a company on your own, expect a response no earlier than 10 days after submitting the application, and more often even after all 15. Add to this the activation of Internet banking, the issuance of a debit card and a checkbook.
and “already” in a month you will be “armed”. In addition, no bank in the UAE opens accounts by proxy and without the personal presence of a shareholder. In the Emirates, everything is very strict in this matter, and it is this fact that provides the banks of the UAE with a high level of trust and security at the regional and international levels.
# I WANT A BIG INTERNATIONAL BANK, A PERSONAL MANAGER AND EVERYTHING IS AT THE TOP LEVEL
There are several large international banks in the Emirates where clients can be served. Among them are HSBC, Barclays Bank and Citi Bank. However, one should not expect the standards inherent in British and American banks. Banks in the UAE live their own separate lives, including international ones.
Many banks do not have a personal manager, so you will need to work with a banking support service. In banking matters, the key role is played by the bank employee through whom you opened the account. Therefore, a good contact at the bank is highly appreciated. We had to work hard to find good support for ourselves. But she certainly is.
# I WILL OPEN A COMPANY WITH ONE SHAREHOLDER, AND WHEN IT IS NECESSARY, I WILL ADD MORE PARTNERS
Already at the opening of the company, you need to carefully consider how the structure of the company will be built further. For each amendment in the corporate structure, company name, the body in which you register, charges a separate fee.
# LOCAL SLEEPING PARTNER DOES NOT SLEEP, HE DROPS
A number of business activities in the UAE require the registration of a local company. A local company does not refer to a geographic location, but to a type of company. In fact, this is a company in which 51% of the shares are owned by a citizen of the UAE. Yes, in 2018-2019 for a number of activities, the requirement to have a local partner has ceased to be relevant, but a number of high-margin niches still require the presence of a local citizen as a shareholder. Many in the Emirates argue that through additional agreements, a UAE citizen (local partner) can be made inactive.
In this regard, in order to minimize risks, we recommend taking a local company as a partner, not an individual, or registering a company in a free zone where 100% of the company can be owned by a foreign investor.