Choosing the right business set up

A foreign company wanting to start a business in the UAE can choose to set up operations as a branch, representative office or registered company, or it can appoint a commercial agent to sell its products in the UAE market or export them. New companies can also choose to conduct their activities from a Free Zone, which is a designated, self-regulated area set up to catalyse economic activity within an emirate and is governed by its own set of rules and regulations. There are around 40 Free Zones in the UAE, with more under development.

It is important to have a full understanding of your options before deciding how to establish your company’s presence in the UAE. Overall growth for your company in the UAE can be hampered by making the wrong choice, so please consider the following points when deciding the best structure for your needs.

The current nature of your business
Business expansion plans
Current capital to invest
Need for outside investors, or desire to attract investors in the future
Tax implications of structure
Personal liability and company risk
Audits and other requirements to remain compliant locally
Mixture of Persons and Companies

UAE Company Formation – FAQs

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