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The GCC has been on top of the list where international businesses are setting up their companies.

This is for many great reasons. It includes business environment, economic and political stability, regulations, no corporate and income tax, and more.

The whole process of setting up is not extremely difficult. However, companies must be well informed in their decisions along the process of deciding and actually setting up their businesses.

Here are some of the most important matters that International businesses should importantly note.

1. Choosing the right business entity – Free Zone vs. Mainland

Business basically have two choices on where to set up their businesses – either Free Zone or Mainland. Briefly, Free Zones work for companies who want to take advantage of the many Free Zone benefits such as having full company ownership and repatriation benefits. While Mainland works for companies who are highly trading in the local UAE market or take a broad range of business activities.

2. Choosing the right license type

It is extremely important that a company chooses the right business license type. The license serves as the company’s legal identity in the region and having the correct one is a must. Having the wrong one limits a business in its activities which can highly impact the operations of the company.

For instance a company starts a management consulting business. The company planned on hitting a profit and starting the trade of goods with is strictly not allowed. So, they’d have to redo the licensing again.

Choosing the right business license depends on:

(1) The business activity

(2) The structure of the company

(3) The region where the business will operate

The authority that manages and releases business licenses is the Department of Economic Development (DED).

These two things are among the most important decisions along the process of setting up a business in the UAE. The entities and licenses a business select have its benefits and limitations which may make or constrain a business from its success.

For companies setting up for the first time in the UAE, analyzing the many options can be a hard task. The best way to approach this is to speak with expert consultants or advisors that can help you understand your choices and take the most appropriate step.

SDAC Consulting DMCC has been helping many international businesses with their business setup needs in the UAE for almost 10 years. We guide companies all through out the process – from market reasearch to get a complete idea of the business viability in the country and its costs – into setting up such as paperwork requirements, licensing, permits, documentation, and more.

You can book a complimentary consultation with our expert advisors HERE. Or you can email us at commercial@sdacconsulting.com.