21 10 2020

The most popular questions from entrepreneurs. Part 1

images

Businessmen planning to open a new enterprise first of all think about where exactly they will open a new business. In our time, there are no problems with this. For example, in the United Arab Emirates, you can start your own business without even having citizenship. In order to protect yourself from some troubles and difficulties, you should first study the information and find answers to your questions or use the services of professionals and get advice.

If you are considering starting a business in the UAE, then most likely you have a lot of different questions. In this article, we'll break down 15 of the most frequently asked questions from business people. The first part will have 5 first questions.

1. What are the benefits of starting a business in the United Arab Emirates?

Today there are many different proposals for entrepreneurs to open companies, free zones, offshore territories and other options. But it is worth noting that it is the UAE that stands out very clearly among all the available proposals, thanks to its undeniable benefits:

- Implementation of the activities of the best banking institutions;

- Almost complete absence of taxes;

- Stable political environment;

- More than 50 free economic zones have been created, where a foreign investor can easily open a company and own it 100%;

- No FEZ is a member of the black list;

- Favorable infrastructure for business development.

2. What types of companies can be opened in the United Arab Emirates?

The UAE authorities provide an opportunity for foreign investors to carry out commercial activities throughout the country. To do this, you need a local partner who must have a controlling stake (51%). However, a list of activities and some requirements was formed, observing which, a foreigner can fully own a local company.

Also, you can open a business inside free economic zones. Each such zone has its own advantages for certain types of activities. You can open an onshore company and conduct activities within the zone in which the company is open, and internationally outside the UAE, as well as open an offshore company and conduct business only in the international market. Companies in the FEZ have no access to the domestic market of the UAE.

3. Which Emirate to choose for starting a business?

There is no single answer to this question, each Emirate has its own pros and cons. Each region has its own free zones. The largest number of them is in Dubai. To begin with, it is worth conducting a market analysis, and then you can choose the most suitable Emirate. If you are planning to open an offshore company, then you need to know that not all free economic zones provide such an opportunity. The Ras al-Khaimah and Dubai free economic zones are most suitable for opening an offshore.

4. How quickly can you open a company and a bank account in the UAE?

The term depends on many factors, such as: the chosen bank, the free zone, the correctness of all provided documents. Of course, if you do everything yourself, then these processes can take several months. In case you use the help of specialists, then you can keep within a few weeks.

5. Tax policy towards foreign citizens?

There are no standard taxes in the United Arab Emirates for businessmen and individuals (on import and export, on income, etc.). But there are exceptions for some sectors: hotel, banking, oil, etc. It cannot be said that there are absolutely no taxes in the UAE. Entrepreneurs need to pay a one-time registration fee. There is a tax on transactions related to commercial real estate, a tax on the import of goods into the local UAE market at a rate of 5%.