Dubai has become one of the ideal places for entrepreneurs to start a business. One of the main aspects Dubai’s popularity stems from its tax free policies. The emirate has attracted many investors and businessmen from all over the world as it is continuously developing. Company’s in Dubai also benefit immensely due to the rapid growth of the economy.
Preferred business setup for Foreign Investors
In order for a foreign investor to conduct business in the UAE, they must set up a formal legal presence in the country. The most preferred business setup for foreign investors are Limited Liability Companies (LLC). This is because the investor is able to keep majority of control of their business and have to put up only a small amount of capital to start up their business.
To start a local company in Dubai, foreign investors will have to partner up with a UAE national, who will have to be majority owner holding 51% of the company’s capital.
Foreign investors can engage in non-commercial business, if they have full ownership of the branch or representative office. the branch offices are only permitted to engage in the same activities that are being carried out by its main branch. Representative offices are a little limited compared to branch offices, as the don’t have a smaller scope of activities they can offer. The representative office does have the ability to perform marketing and administrative functions on its foreign company’s behalf.
Setting up a business in Dubai
Setting up a business in Dubai can sometimes become a little overwhelming and difficult to follow, therefore hiring a good knowledgeable business consultancy is beneficial. Peninsula Business Solutions (PBS) is a business formation consultancy that can completely take on all the hassle of setting up a business. PBS will not only guide you through the setting up process but will also register the company for you. PBS can also help with opening your bank account, arrange for an auditor, do your renewals and offer you nominee services.
PBS has a team of experts to plan out your company registration from scratch which includes the strategies you need to follow in order to smoothly set up your business, offering licensing and location options, and in case of any hurdles our consultants can provide you with numerous solutions.