UAE economic steadiness fascinates foreign investors

by Allenna . 0 Comments


Many business units in the United Arab Emirates (UAE) have exerted their effort in order to stay on the development trend in 2016 regardless of the difficulties in the overall economy.

The market of UAE is expected to keep its resilience and will withstand the effects of instability of oil and equities, limited liquidity and weakening new markets. The industries are still positive that the government’s economic development scheme and the relentless dealings in infrastructure projects will improve the economy in 2016.

A chain of intervention and evaluation should be carried out before setting up a business in UAE. Additionally, it is vital to remember that UAE basically openhandedly embraces foreign investments as it is one of the key ingredients for its development, thus their protocols for business setup is projected to be the most balanced around the world.

The Founder and Chairman of Adgeco Group, Mohamed Dekkak, suggests to the investors to buy an existing company in order to expedite the business registration and operation in the country. The investors can take advantage of the smaller required startup capital and may not look for a UAE national who will sponsor or represent the company.  Buying an already established business entity will only focus on the valuation and the transfer of ownership.

The UAE provides the investors several options on the types of businesses or companies are suitable on the nature of the services of the company.

Familiarity is necessary before business setup in UAE

 The guidelines to undertake thoughtful analysis about the condition of the sector where the new business is going to be registered. A realistic business plan may be required including the up-to-date information on the standing of the market, the level of competition, and the estimated outcome of the plan.

Searching for the essential funds from the investor’s own accounts is necessary in this case particularly if they don’t have any background regarding the business principles of the country. A sound and well-rounded proposal will always get the startup permission from the local authorities and the government.

Presence of a UAE national sponsor is required in company setup in UAE

The assignment of a local partner for the company set up must be undertaken and he will be entitled for at least 51% ownership of the company.

The majority share gives the sponsor a position as one of the decision maker of the company, even the authority to cease the operations of the business.

As per the set of rules guiding the business set up in the UAE, the local partner is not liable for the business set up or even forced to contribute in the capital of the business. With regards to self-employment, there are several ways that a partner can be waged.

Once the registration of the company is done with the help of the local partner, the owner of the company must prove to the Ministry of Commerce that he has a lot of capital to put in into the business. The set up cost differs from place to place in the country. It is said that the amount of up to $50,000 is needed as a guarantee against obligations. Providentially, these funds are allowed to be withdrawn later on.

The prospect of full ownership of the business established in UAE

The business owners who plan to manage and wholly own the company can set up the business in the Free Zones. With this, the owner can formulate his own set of internal policies.  However, the owner must be primed as business in the Free zone needs more drive to become steady as these zones are usually far away from the city.  Furthermore, the lease in the Free Zones is expressively expensive compared those in the city.

A consultation from a qualified lawyer or legal consultant may be necessary to guide the investors on the processing of all required certificates of registration of the business and protecting the investor’s interest as well.

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