21 10 2020

The most popular questions from entrepreneurs. Part 3

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Here is the final article about the most popular questions from businessmen who are going to open a business in the United Arab Emirates.

1. If I do not live permanently in the UAE, can I open a business there?

Yes, you can use the services of a consulting company that will act as an intermediary between you and the authorities of the United Arab Emirates. You will save time and money on accommodation, and most importantly, the company will take over all the registration processes and provide professional support. What support can such a company provide?

- assistance in the selection of a free economic zone;

- in obtaining a visa;

- in the preparation of a package of documents;

- in opening a bank account;

- and most importantly, to minimize the likelihood that you may be denied in obtaining a license, opening a bank account, as well as filling out all the documents correctly, which in the future will help to avoid money spending on re-registration or fines.

All you need to do is to hand over the papers required for verification and appear 1 time to sign the contract.

2. Is the presence of authorized capital a necessity?

In case of registration of a local company, the authorized capital is absolutely unnecessary. If you register a company inside a free zone, then most of them have special conditions.

3. What do i need to know about resident visas if I am going to open a business in the UAE?

Let's start with the definition of a resident visa - this is a visa that allows its owner to live and work in the United Arab Emirates for 2-3 years. Further, you can easily extend your visa for a similar period. If the holder of a residence visa is a man, then his family can move with him without additional documents. When registering an onshore or local company, a businessman not only receives a visa himself, but also the company's employees can get it. The number of visas depends on the size of the office space.

4. Is a license a mandatory factor when starting a business in the UAE and how is the renewal procedure going?

It is necessary to obtain a license. If you do not have a license, then you will not be able to open a company and obtain permission to carry out the chosen activity. It takes about 5 business days to issue a standard license. If your type of activity requires a special license, then the time for obtaining and the cost will increase. There are 3 main types of licenses:

- Commercial - for the sale of goods within the Arab Emirates and beyond. This type of license is divided into 2 types: for general trading activities and for a specific group of goods.

- Industrial - for the production of goods;

- Professional - for firms that open a business in the United Arab Emirates in order to provide various services to the population.

It is worth mentioning that you will need to obtain permits from the UAE Ministry if your business is industrial, educational or healthcare.

5. Can I work in the UAE after opening an offshore company?

In this case, you cannot work in the UAE. An offshore company cannot carry out activities within the country, even on the territory of the free economic zone in which it is registered. You will only get legal address in the UAE. Offshore companies can rent and purchase real estate (then you need to register it for yourself). You, as an offshore owner, can be a shareholder of other companies.