Starting a company and operating the company successfully is always a task. But if you have the right human resources, supporting entrepreneurial system, proper infrastructure facilities, right mentorship, consulting firms, the right marketplace, investors a friendly banking system, your job is half done. This blog discusses the five key areas to focus on before opening your company in United Arab Emirates.
1. Activity of the Company
For all startups, it is essential to identify the right activities for the company as per the laws and regulations of the country. If you compromise on finding the right activity, it will create hassles during its operation. Choosing the right activity will make your business operations smooth and uncomplicated.
2. Choose the Marketplace
Choosing the right marketplace for your products and services is essential. In the context of the business set up in the United Arab Emirates, two points are to be considered.
a. Local Market Target
b. International market (mainly exports/ reexport of products and services)
If the product and services you sell directly to your end users / B2B in this case, we can consider the operation mainly in the local market. Moreover, to advise registering the company on the mainland rather than free zone since the main intention is to sell the product and services locally. If the company targets the international marketplace (exports/ reexport), the suitable option is to register the company in the free trade zone in the United Arab Emirates.
3. Entity of the Company
It is very important to choose the right entity for the proposed company. Whether it should be registered as a free zone company or offshore company, or the mainland company – /branch of a foreign company / professional firm. The company’s entity should be decided based on the activity, marketplace, and international tax implications.
4. Bank Account Opening
A bank account plays a vital role in the operation of the company. Without a bank account, the company’s daily operations are impossible in this era. Personal bank accounts, as well as corporate bank account opening, have a lot of compliance procedures globally. To fulfill the requirements of the bank account opening, the investors should be aware of the compliance and KYC requirements of the bank account opening procedures in the United Arab Emirates. Hassle-free bank account opening for the companies depends on the company’s entity, the activity of the company, KYC and profile of the shareholders, targeted clients and their countries, location of the company registered, etc. It always is advisable to seek bankers’ opinions before choosing the free zone or offshore or mainland, especially which free zone and which offshore jurisdictions to be considered.
5. Office / Warehouse Location
Choosing the right office/warehouse in the right place is very important. Your line of business will define premises. The infrastructure facilities, rent, electricity, parking facilities, etc., are the other essential factors to be kept in mind.