Establishing Business in UAE
The UAE is like a paradise for import businesses; if anybody wants to establish a business in the UAE as an individual or in partnership; few things should be kept in mind.
For example, the UAE’s import income is humongous and it mounts $14 billions yearly, non oil product imports have increased enough and still there is a great scope for more growth, the UAE is becoming day by day as trading center and is also proving it self to be a major supplier for the neighboring countries, increasing number of expatriates has increased the demand of foreign food products as well as latest electronic equipments so the UAE is getting day by day a good market and there are a number of different opportunities for the investors for export trading and establishing businesses, there are no foreign exchange rules, laws, or conditions in UAE.
Duties on import products are low, many products are free from taxation, the transportation facilities in the UAE are remarkable, the transport facilities are provided from ports to warehouses and these facilities are proficient which makes it easy to travel and store the goods in less time; it not only saves the time but also increase profit
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According to About Dubai, there can be 7 different categories in which a business can be started: General Partnership Company, Partnership en Commendams, Joint Venture Company, Public Share Holder Company, Private Shareholder Company, Limited Liability Company and share Partnership Company. There are few rules that are applicable to these types of businesses like; partnership companies can be only belonged to the UAE citizens, Government currently does not support partnership en commendams and share partnership companies to be started, for a joint venture business there must be an agreement between a foreign company and a local company but the contribution of local company should be not less than 51 percent. In joint venture case the issues like profit and share and loss should be pre decided and this type of business does not require any license. (Business Opportunities in Dubai, n. p. ) Requisites for Business in UAE
The UAE is a great place to establish business as it has liberal rules and laws but for establishing a business in the UAE the most important factor is license. These licenses are issued by the Dubai Economic Department and it depends on the kind of business that is being established. Commercial licenses are required for any kind of trading while professional licenses are required for any kind of business that is started for providing services to the customers and industrial licenses are essential for establishing any kind of industry or manufacturing work. There are very much in-depth details that are for the businesses involving oil and gas productions where as businesses involving jewelry or insurance need financial guarantees that are issued by any bank based in the UAE.
According to the laws enforced by the government, at least 51 percent contribution of the UAE citizen is the major need for starting up any business but it is still having some exceptional cases. (Business Opportunities in Dubai, n. p.) Why Invest In UAE? The strategy plans of the United Arab Emirates for the next few years are mainly focusing on the diversification. They want to create more opportunities and chances for their own citizens by providing them quality services and by increasing the private sector so that employment rate is increased. Such conditions encourage investors to invest in the UAE as there are lots of benefits in establishing a business in such healthy conditions of economy.
It has an unbreakable record of 20 years of consistent economic growth, transportation and other developments, and political steadiness; and these are the reasons which are increasing the attraction for the foreign investors to come and invest their money in businesses. It is a commercial hub having a dynamic, strong and pioneering business culture. The Government policies of the UAE are business friendly which allows 100% repatriation of assets and revenue. There are chances for foreign investors to invest in 100% freehold properties; they can give the property on rent or they can use the properties by themselves. They are always allowed to sell the property anytime with complete repatriation rights.
This business of freehold properties is getting very much common in the UAE as there are a great number of expatriates in the UAE and they are in search of such properties for living. In such a business investors definitely get pretty good returns on their investments. According to an evaluation, it is expected that by investing in the UAE mostly there is an annual return of 25% in the first three years and then it continues to increase. The social, political and business infrastructure of the UAE has made it attraction for business sector. Though, the UAE is open for business and investments still free trade zones are established that offers supplementary incentives for residing in free zones.
According to Asia Trade Hub, few of the advantages are: excellent communication, handy amenities, 100 percent foreign ownership allowed, no problem of sponsorship, corporate tax exemption, no custom duty on imported raw material or equipment and no levy on imports and exports. Its free trade zones are one of the biggest and most flourishing in the world and probably because of business friendly policies and laws global organizations wants to set up their businesses in the UAE. (Business Opportunities in Dubai, n. p. )
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Accessed October 17, 2008 Inflation in GCC to ease IMF UAE – The Official Web Site – News <http://uaeinteract. com/docs/Inflation_in_GCC_to_ease_IMF/31815. htm> Accessed October 17, 2008 United Arab Emirates <http://www. alshamsi. net/uae/economy. html> Accessed October 17, 2008 United Arab Emirates (UAE) Business Profile AME Info Country Guide <http://www. ameinfo. com/united_arab_emirates_business_profile/> Accessed October 17, 2008