21 10 2020

The most popular questions from entrepreneurs. Part 2

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We continue article about the most popular questions from businessmen. In this article, we will break down the following five questions that are most often asked by entrepreneurs interested in starting a business in the UAE.

1. Who is eligible to open a business in the United Arab Emirates?

If you want to open a business inside one of the free zones, then nationality, citizenship and religion do not play any role. The registration procedure is available for legal entities and for individuals who have already reached the age of 21. However, in some free zones there are restrictions in the form of a minimum age threshold of 25 years.

2. What types of activities are available in the UAE?

Almost any entrepreneurial activity is available in the United Arab Emirates. You can provide various services (professional activities), engage in the production of goods (industrial activities), sell goods / products in the domestic market of the Arab Emirates or internationally (commercial activities), rent out warehouses, or build them and then sell ( warehouse activity), etc. The exceptions include gaming, insurance and several other activities.

3. Available forms for business in the UAE?

It should be noted right away that the UAE authorities do not interfere in any way, but on the contrary, they strongly encourage registration of both an independent company and a branch when the parent company is located outside the Emirates. The list of the most popular forms for business:

- The firm is professional, owned by individuals and provide services to people (medical activities, consulting, educational), etc.

- Professional firm, which is based on a partnership of 2 or more legal entities / indivisuals. Provides services to the population.

- Limited Liability Company (LLC). To open such a company, you will need from 2 to 50 owners. Provides commercial, industrial and other activities.

- Subsidiary (branch). In the United Arab Emirates, you can register a branch of a company in a free economic zone or a company located outside the United Arab Emirates.

4. What is included in the required package of documents for starting a business in the Emirates?

The type of documents will very much depend on who will register the business, individual or legal entity. In the event that the registration is carried out by an individual, then first you need to provide identity documents. For legal entities, everything is more complicated, documents of management, shareholders, as well as docs confirming the legality of registration of a legal entity are required. Of the costs, legalization is worth noting. To get a detailed list of required documents, you need to contact the free zone in which you want to open a company, or to an intermediary who helps you with the registration procedure.

5. Is it better to buy a ready-made business or open it yourself?

There is no definitive answer to this question, in both cases there are both positive and negative points. We can immediately say that by purchasing a ready-made business you save a lot of time, at least for opening a bank account. Among the shortcomings may be the name of the company (name changing is a very laborious process), there may be dissatisfied customers in the past, debts or partners who were deceived in the past. In the case of starting a business from scratch, you will have to incur the costs associated with registration, then deal with the promotion of the business for a long time. Therefore, deciding to buy a ready-made company, you need to carefully check it at all stages.