Starting a business in the Emirates is relatively straightforward, and almost anyone can do it. This is because the government offers numerous incentives for opening businesses there.
The key thing to know is that for most types of companies, except for sole proprietorships, you will need a local Emirati partner who owns 51% of the business. After that, you simply need to go through the process of registering and licensing your business. In some cases, you may also need to meet minimum capital requirements.
The best part about starting a business in the UAE is the free zones. These are unique areas popular among foreign investors because they offer 0% corporate and personal tax, 100% foreign ownership, and exemption from import and export duties.

If you are planning to start a business in the UAE, you should first think about the type of company you will set up. As with any other country, there are many different legal corporate structures in the Emirates. Below are some of the most common ones and some of their requirements.

Sole proprietorship
This type of company is 100% owned by one individual. Because of this, this individual has complete control over operations and profits. While all nationalities can form a sole proprietorship, only UAE and GCC nationals can own a commercial or industrial company.

Civilian Company
Professionals such as doctors, accountants and lawyers can open a civil company in the UAE. An Emirati citizen must own 51% of the business.

Limited Liability Company (LLC)
An LLC must have between two and 50 shareholders. Thus, each is only responsible for his or her own percentage of shares. In addition, profits and losses are divided among the shareholders according to their assets. Again, 51% of the shares must be owned by a UAE national. In addition, an LCC with more than seven partners must appoint a board of at least three shareholders.

Branch office
A foreign company can open a branch office in the UAE. In this case, the company is 100% owned by the parent company. However, any goods must be imported through a local trading firm.

Free Zone Company
Free zone companies require between two and five stakeholders. While there are many benefits and incentives for setting up in UAE free zones, you should be aware that these companies cannot trade directly with the UAE market. Therefore, there may be different requirements for starting a business there. For example, twofour54 Abu Dhabi does not require any capital. However, Dubai Airport Free Zone requires a minimum registered capital of UAE Dhs 1,000, while KIZAD LCC will require UAE Dhs 150,000.

Freelancers
Setting up a freelance business in the UAE is surprisingly easy. You will need to register in the freelance zone with an application form, resume, bank reference and a notarized form of registration ID code. You will also be able to apply for a visa.

If you want to start a business in UAE, there are a few things you should know. Here are some practical tips to get you set up.

How to get a business visa in the UAE
If you are going to start a business in the UAE, you will need to get a visa to live and work in the country. There are two types for entrepreneurs. Both five-year and 10-year visas are available without sponsorship.
To get a five-year visa, there are two options. First, you must have references for an existing project with a minimum capital of UAE Dh500,000. Second, you must be approved by an accredited business incubator in the UAE.
The 10-year visa is more difficult to obtain. Again, there are two options. In the first case, you must contribute at least UAE Dh10 million as a public investment. Alternatively, you can also set up a company with a capital of at least UAE Dh10 million or invest UAE Dh10 million in an existing company.
There are exceptions for people with special talents. For example, a 10-year visa can be granted to creative individuals with the approval of the Ministry of Culture and Knowledge Development.

Registering your business in the UAE
If you are starting a business in the UAE, you will first need to choose a business name. Start by talking to the local free zone authorities or the Department of Economic Development; they will be able to tell you if your name is acceptable. UAE laws state that trade names must not violate public morals, must not be pre-registered and must be consistent with the required activities and legal status of the business.
If you have a name, you will need to apply for a business license. There are four types available in the UAE mainland such as commercial, professional, industrial and tourism.
If you are operating in a free zone, you will need to apply directly to the relevant zone. This will depend on your business activity. For example, twofour54 in Abu Dhabi is mainly involved in creative industries such as graphic design, advertising and app development. Conversely, DMCC in Dubai focuses on energy, commodities, gold and diamonds, construction, healthcare and shipping.
Registration and licensing are done simultaneously. To register your business, you will need to submit an application to the relevant local authority or the Free Zone. In addition, you will need to provide the following documents:

- A completed application form
- Business Plan
- Copies of passports of shareholders/directors
- Sample signatures of shareholders/directors
- Letter of Intent
You will also need to provide the following to complete your licensing:
- A resolution of the board of directors appointing a manager/director of the company
- Power of attorney for the manager/director
- Memorandum and Articles of Association
- A specimen signature of the manager/director
- Photograph of the manager/director
- Equity information

You will also need to register your business online with the Federal Internal Revenue Service.

Licenses and permits
For the most part, you can obtain a business license from the Department of Economic Development or your local free zone. However, some companies may need special licenses. For example, manufacturing companies must be approved by the Ministry of Finance and Industry, and the UAE Ministry of Health issues licenses to medical and pharmaceutical companies.

If you are planning to start an e-commerce venture, you will have a different experience in the UAE. First, you will need to apply to the Department of Economic Development in your Emirate.

Second, you will need to obtain an e-commerce license from the Telecommunications Regulatory Authority. In Abu Dhabi, this is Tajer Abu Dhabi; in Dubai, it is known as a DED trader's license. After that, you will follow the same steps to set up a business in the UAE as any other company.

Legally, there is a big difference between a branch and a subsidiary of a foreign company. A branch is tied to the parent company, which is therefore responsible for the actions of the branch. However, a subsidiary acts as a legally independent company. Thus, the subsidiary will operate within the UAE business structure. However, it can also benefit from double taxation protection and can operate in a free zone.

Like any other business in the UAE, the branch or subsidiary must be registered with the Ministry of Economy. Similarly, you will need to provide documentation such as memorandum and articles of association and power of attorney. Record keeping for foreign branches or subsidiaries is the same as for any other business in the UAE.

Although starting a business in the UAE is relatively easy, setting up a non-profit company or charitable organization can be a bit more complicated. UAE nationals are able to register a charitable organization online directly through the Ministry of Community Development.
Expats, on the other hand, must apply to the ministry through their UAE embassy or consulate. Like any other company, the non-profit organization must fill out an application form. They also need to provide information about the founders, register a trade name and submit a memorandum and articles of association.

If you are considering setting up an offshore company, there are a few major pros and cons to keep in mind.
Offshore incorporation is a simple process in all the popular offshore financial centers and tax havens around the world. They can provide a wide range of benefits to the company and company executives.

You can learn more about the pros and cons of setting up an offshore company, including privacy and reduced tax liabilities by consulting our managers.

If you have a business in the UAE, you must keep detailed records of everything that relates to your company. Of course, the most important part of this is keeping your accounting records up to date in accordance with UAE law. This includes annual reports, general ledgers, purchase ledgers, tax invoices, credit notes, debit notes and VAT registers.

Together they should display all business transactions and offer an accurate financial overview of the company at all times. In addition, the accounting records must be kept at the company's head office for at least five years. After that, you can keep digital copies.

However, there are some caveats. For example, records of capital assets, such as machinery and furniture, should be kept for at least 10 years. Similarly, real estate records should be kept for at least 15 years. If you operate in a free zone, such as the Dubai International Financial Center (DIFC), you may also have additional requirements.

You will also need to pay attention to creating invoices. This is because businesses in the UAE must include specific details on each invoice. This includes:
- The name, address and tax number of the recipient
- Unique invoice number
- Date of issue or date of delivery
- Price per unit and quantity/volume delivered
- Tax rate and amount payable in UAE dirhams
- Gross value payable in UAE dirhams

When setting up a business in the UAE, it can be useful to use administrative or accounting software. Some of the most popular programs in the country include Quickbooks, SAP, Zoho, Sage, Tally and Reachaccountant. For invoicing software, you can try SmartInvoice or TaxPay.

It is important to open a bank account for a business. However, to do this, you first need to register your business and get a license.
To open a bank account for your business, you will need to have a personal interview at the bank of your choice. You will also need to provide documents including:
- A completed application form
- A resolution from the board of directors authorizing the opening of the account and appointing signatories
- Certificate of Incorporation
- Trading license
- Share certificates
- Memorandum of Association and Articles of Association
- Copies of passports of all partners/directors

In addition, some banks may ask you to provide business plans, contracts and invoices, as well as letters of recommendation. They may also require all shareholders to confirm visa and residency status. When you have all your documents in order, you will come to a meeting at the bank. If everything is approved at this stage, the account will be opened within two weeks.

Corporate bank accounts usually have to maintain a minimum balance. This can be up to 1 million UAE dirhams, but it can also be as low as 20,000 UAE dirhams. In addition, business accounts can have multi-currency facilities.

Locally, some of the most popular commercial banks are First Abu Dhabi Bank, Emirates NBD and Dubai Islamic Bank. However, you can also opt for larger international banks such as HSBC and Standard Chartered.

When starting a business in the UAE, you should also keep tax registration in mind. The country usually levies three types of taxes on companies: excise tax, VAT and corporation tax.
Excise tax is levied on carbonated drinks, energy drinks, tobacco and tobacco products. It can also apply to products that are considered harmful to the human body. You can register for this online at the FTA website. You will then have to file your return within 15 days of the tax period. There are different tax rates for different types of products:
- Carbonated beverages: 50%
- Tobacco: 100%
- Energy drinks: 100%
- Electronic smoking devices: 100%

Businesses in the UAE also pay 5% VAT. VAT applies to all tax-registered businesses in the UAE mainland and free zones. If your company's taxable supplies and imports exceed UAE AED 375,000 per year, you must register for this.

Corporate Tax(Income Tax) .

- Your business will be subject to corporate tax from your first financial year
starting on or after June 1, 2023.
- Every business will need to register for corporate tax, including free zone companies and freelancers.
- Corporate tax is separate from VAT. Even if you already have a VAT number, you will still need to register for corporate tax.

0% Tax Rate
Businesses with annual net profits of up to AED 375,000 are subject to a 0% tax rate.

9% Tax Rate
Businesses are subject to a 9% tax rate on annual net profits that exceed AED 375,000.

To protect your company, you should consider insurance when starting a business in the UAE. There are different types of insurance available in the Emirates, and they apply to either the business or its employees.

Here are the most useful types of employee insurance:
- Workers' Compensation - protects your business in case of accidents and injuries at work;
- Accident insurance - while not required, it is useful for covering non-productive injuries and accidents;
- Health Insurance - all businesses in the UAE must provide health insurance for employees;
- Travel insurance - if your employees are traveling for work, this can be very useful, for example in case of travel delays or lost luggage.
There are also insurance options that can be useful for specific businesses. Here they are:
- Marine insurance - if your business involves shipping or anything else related to the sea, this is crucial to protect your cargo and investment;
- Fleet insurance - for companies that operate a fleet of vehicles, this will protect all of your vehicles in the event of damage and accidents;
- Property Insurance - for businesses that own real estate, you will be insured in the event of a fire or other damage to your property.

It is equally important that all businesses have liability insurance. This is because many things can go wrong in the day-to-day operations of a business. This insurance covers your company in case of errors, accidents, and wrongdoing.

Once your business is moving forward, you can start hiring staff. You should be aware that many industries must meet local employment quotas. For example, some industries must employ a certain number of local staff. Banking has a minimum of 4% and insurance has a minimum of 5%.

If you are planning to hire UAE nationals, there are a few things to consider. First, you must notify the labor department within 15 days of the employee's start date. In addition, you must provide the same social security and pension as government employees. Also, if you have more than 100 employees, you must hire a UAE national as an intermediary between the company and MOHRE.

Many companies registered in the mainland prefer to hire foreign employees. To do so, you must apply through MOHRE and the General Directorate of Residents and Foreigners in your local emirate. They must meet certain requirements and provide a signed employment contract.

To employ foreign staff in the Free Zone, you must apply directly to the local authorities in the zone. Although visas are widely available, candidates must meet certain requirements. For example, they must be between the ages of 18 and 60. It is important to note that Free Zones have visa quota limits, although you can apply for additional visas.

To obtain a visa for a foreign worker, a company must also present:
- A business license
- An electronic signature card
- A color photo of the employee
- A copy of the employee's passport

If you are hiring an employee, there are certain things you must provide. First, health insurance is mandatory. Also, 30 days of annual leave and 90 days of sick leave are usually offered. Foreign workers may also be provided with housing, return flights, and education allowance for their children.

The government offers several financial support schemes for starting a business in the UAE. However, these are only available to Emiratis, so local partners or shareholders of your company will need to apply for these. Most programs are under the umbrella of the Khalifa Enterprise Development Fund.

Similarly, Dubai SME offers financing as well as consulting and incubation services for SMEs. In addition, the Intelaq program offers financial support to startups as well as legal, marketing and technical advice.

Venture capital and business angels are also becoming popular ways to finance businesses in the UAE. You can look for those who are interested in exactly the type of business your business is operating in. Of course, many banks offer loans for starting a business in the Emirates. If you can meet their credit requirements and repayments, this may be a good option.

There are many types of office space available in the UAE. However, traditional offices are not particularly popular because they can be expensive and difficult to set up.

For those who are just starting a business in the UAE, co-working spaces are a good choice. They allow you to have complete flexibility, and many even offer certain business functions such as printing and faxing or receiving mail. For example, popular co-working spaces in Dubai include Nook, NEST, Our Space and Letswork. You'll also find global co-working brands such as WeWork.

If you have multiple employees, a serviced office may be a better fit for you. They are more like a traditional office space. However, they have many benefits that can be useful. You often have staff on hand, such as receptionists and assistants, that you can utilize without having to hire them yourself. You may also have cleaners to keep everything clean and an IT team to help with any technical issues. Keep in mind that serviced offices are especially popular in vacant areas.

There are many training courses available in the UAE to help you take your business to the next level. Zabeel Institute offers training in everything from languages and logistics to marketing and human resource management.

Similarly, Promise offers a wide range of corporate training courses, from financial management and contract administration to sustainability and warehouse management. In addition, the KPMG Business Academy offers more advanced financial courses such as advanced financial statement analysis.

In addition, some government departments provide specialized training for Emirati residents. For example, MHRE has a dedicated national training sector that provides specialized training to help locals succeed in private companies. Similarly, the Ministry of Finance offers detailed financial education.