Reasons to set up shop in Dubai, United Arab Emirates
The process of establishing a business in Dubai, United Arab Emirates, is extremely simple, with no tax and full control of the company. With the UAE's 45 free zones, starting a business may be a very real possibility. The three largest UAE free zones now trade with over 30,000 entities. For more information visit our website https://gccsolutions.com/. GCC Solutions is leading corporate services provider in the Middle East.
Pre-packaged permits, labor visas, and business finance bank accounts are available for new enterprises that land in a free zone. We're starting to see a recurrent theme. As soon as they have gained experience and first satisfaction, entrepreneurs who have invested in the basis of their UAE commercial organization through the free zone are ready to expand. Read more: How to Start Business in Saudi Arabia for Foreigners
To graduate from the free zone and ensure that your greatest initiatives may continue to grow in the very profitable mainland, we examine five reasons for jumping the border. It's critical for development: Your company may be able to grow over a period of time in a free zone. Emirati businessmen may take advantage of UAE's thriving economy, which is broad, varied, and fast-paced. Customs tax and dealing with local agents who charge a fee for their services are two things you'll need to do if your free zone firm wants to start doing business with mainland UAE companies on the mainland.
As a last resort, you can create a branch of your free zone business on the mainland by registering with Dubai's Department of Economic Development (DED). You should begin thinking about the move at this point in time. Foreign investors and traders may soon be able to hold up to 49 percent of onshore UAE enterprises, according to a statement from the UAE's Ministry of Economy.
It makes it possible for your UAE free zone firm to expand into other areas, such as new goods, services, or industry sectors altogether. There is more work to be done in a free zone. Free local governments create and issue business permits that describe the nature of the business in question. The license is often associated with a single company. If you want to move into a new industry, you need sector sign-off, which is a legal requirement that is frequently refused to enterprises who apply.
A new company's best bet for expanding its market is to show up on the mainland and register. You may only move on and expand when the first setup is complete and a license is provided. On the bright side, you won't have to worry about a third birthday celebration deciding the fate of your business.
In addition, it enables the recruitment: In order to live in the United Arab Emirates, a person must either own a business in the UAE, or have an employment agreement with a UAE-based firm. When it comes to getting started, many people face this problem. It's via the management of visas and subcontracted workers that free zones bring value and relieve stress for their clients. Even though those employees are supported by way of the free zone, not by means of you, they're only permitted to work in that location. In free zones, the process of obtaining visas, while straightforward, has an upper limit.
The UAE's Mainland SME sector is booming. Seventy percent of UAE SMEs want to hire more employees, according to a poll conducted by commercial business intelligence firm MEED in 2016. As a matter of fact, 6% of organizations planned to hire up to 50 people in the year before to this. Those are quite a lot of visas, which is a good indication of the amount of space available.
It gives you the chance to win lucrative government projects: During the first half of 2017, the UAE government awarded contracts totaling AED 1tr to various companies and organizations (USD 272.22bn). Despite the fact that Saudi Arabia is the region's most populous country, UAE prizes are worth 25 percent more in real terms.
During the first six months of 2017, the UAE government awarded contracts worth AED 1tr (USD 21.3bn). In the United Arab Emirates, government tenders are a major source of revenue. During 2016, the Abu Dhabi Executive Council approved spending of AED 17.5 billion (USD 4.76 billion) on government duties, including more than AED 4 billion on infrastructure, approximately AED 2 billion on education, and a combined AED 1.2 billion on improvements to governmental and social center facilities.
AED 3 trillion is expected to be spent on current UAE production projects, many of which are public-private partnerships. Aljada challenge, MAG Eye, and Marina Mall Abu Dhabi are just a few of the AED 24bn projects in the works. Preparations for the 2020 Expo might see the fulfillment of contracts totaling AED 11 billion.
To succeed, you need to be able to do it. Expertise in heavy industry or global import/export are two examples of businesses that might benefit from a free zone. They've been around since 1985, when the Jebel Ali Free Zone Authority (JAFZA) was established as the country's first such entity. You've come to the right location if your organization isn't interested in visiting the UAE mainland.
A boot device, however, is the financial system of the UAE. If even a little part of your organization's future is dependent on it, then moving from a free zone to the mainland might be a game changer. Free zones in the United Arab Emirates are excellent sites to start a business and give a tried-and-true route into the UAE's commercial scene. In spite of their inherent advantages, they are constrained by the magnetic, kinetic economic system in which they operate. Like our Facebook page!
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