UAE is home to numerous businesses and is becoming one of the world’s top trade hubs. The Ease of Doing Business Index ranks UAE as the No.1 in the Middle East region. The government of UAE is very supportive to the initiatives that will power business growth.
Company License in UAE can be obtained from the Free Zones in Dubai for AED 11,900. Cost varies depending on various factors like the Free Zone location, Number of Visa Quotas, Office Space requirements, business activity selected and more.
The global investors avail numerous incentives from the UAE Government, Free Zone authorities, and Banking Partners. Opening a new company in the UAE is very straightforward and follows certain steps.
Business Consultants will guide the investors throughout the process of setting up a company in the UAE. There are numerous options available in UAE to set up a company.
The Free Trade Zones are the most preferred choice among foreign investors mainly due to the 100% foreign ownership of the company.
Procedure to Obtain Company License in UAE
There is a series of steps to follow for the investor to obtain the company license in the UAE. Taking the assistance of an expert Business Consultant in UAE helps to obtain the company license without any hassle.
- Fix a tradename for the company. Follow the right naming practices specified by the Free Zone guidelines. AURION will guide investors in choosing the right tradename for their company
- Select the specific business activities based on the nature of business from the activity list
- Finalize the Free Trade Zone, Office/Warehouse Spaces as per requirement
- Submit the Passport Copy and Photograph, Application Form to Aurion. Our team will coordinate the company setup process for you.
- Make the required Fee Payment to the Free Zone and obtain the Company License and other supporting documents from the chosen Free Trade Zone in UAE.
The Company License is the legal document that states the whereabouts of the newly registered company. It is valid for 1 year and is subject to renewal every year for nominal fees.
For legally conducting business in UAE as well as operating a business without any hassle internationally; having a trade license is mandatory for the investor.
Especially with new regulations globally, legitimate businesses with valid trade license is a requirement to avoid any blacklisting or fines by local as well as international governing bodies.
Company Setup Tips for Entrepreneurs in UAE
Here are a few tips for UAE entrepreneurs to successfully keep their businesses afloat. To surpass the turmoil and market volatility caused due to the pandemic, war, etc., can be achieved by following the below steps.
1. Conduct a Feasibility Study
Thoroughly understand the market for the newly developed products or services. Learn more about the competitor’s product offerings, gaps in the market, shortcomings of the products, and more.
Conduct an extensive feasibility study for the business and prepare the action items to enhance the product and service efficiency. Gaining customer satisfaction and the ability to provide a positive customer experience will help businesses succeed.
2. Study the Environment
Monitor the market environment frequently, analyze the industry conditions and have a future roadmap to progress the right way. Meeting the market demand through engaging products & services is a result of a market study.
Change the operations by understanding the strengths and weaknesses. Take the required corrective actions accordingly. Chart out a plan to mitigate the risks and monetize the opportunities.
3. Maintain Positive Cash Flow
A company that is starting must be having a very close watch on the cash flows. Initially, it will be quite challenging to maintain a positive cash flow for startup companies. There will be numerous expenses involved in running the company.
However, eventually, as the business is sustaining the impacts and serving more customers, the cash flow must turn positive. Else, rethink the business model to generate more cash flow to keep the company afloat.
4. Know Free Zone Benefits
The Free Trade Zones in UAE is a perfect choice for starting a new business. Obtaining a Company License from UAE Free Zones are very beneficial for investors.
Depending on the specific business requirement, the investor can choose from over 40 plus Free Trade Zones. There are a host of cost-effective company setup packages on offer from the Free Zones.
Hence, investors must make an informed decision on which Free Zone, company setup package, and office space to choose for setting up their new company.
Networking is an important practice for the success of the business. The business owner must invest time to network and build new connections to convert them to customers.
It helps in expanding business in all areas and keeping a close look at the market situations and customer feedback. It helps in retention and repeats purchases as well as a gain competitive advantage.
6. Reduce Setup and Operating Cost
Financial planning is an important aspect for a company to sustain and grow even amid uncertainties. The investor must keep the initial company setup cost low as well as reduce the operating cost.
The company will incur costs in all forms and the investor has to be mindful in all their transactions to keep the company running at all stages. Emergency funds are necessary for organizations to face unexpected events such as a Pandemic, Revision, war, etc.
7. Good Communication Across Team and Third-Parties
Communication across the team and the third parties i.e, suppliers, contractors, customers, and other related parties is crucial. Similarly, the investors must convey the enterprise goals to all the employees working in the firm.
Team communication enhances business productivity and drives customer engagement. Ultimately, the business goals of the organization will be achieved by the employees who share the same values as the company.
8. Long-term Objectives and Strategies
Start-ups and newly formed companies must have a defined business plan and a long-term business objective. The top management must be crafting strategies to keep the business afloat for a longer duration with positive cash flows.
A sound management team will help in delivering higher business productivity and business growth by guiding the employees the right way.
Hence, in a nutshell, investors can follow the above steps to keep their company striving ahead to achieve their business goals.
Reach out to our expert team of Business Consultants to know more about Setting Up a Company in UAE in the most cost-effective way.
Contact Us: Aurion Business Consultants