Pros & Cons of a Company Set Up in the UAE

May 28, 2020by admin0

Business set up in UAE is a gateway to success. With its modern infrastructure, rich technologically forward resources, and various company formation options, it is an ideal location for starting up a business.
However, before opting for a company set up in the UAE, it is important to view the big picture and weigh the pros and cons.

  1. Pros of Company Set Up in Dubai
  2. Cons of Company Set Up in Dubai

Many entrepreneurs have had a successful and profitable experience in business set up in UAE, and this is encouraging for all those who are trying to find the best environment for their startup. Moreover, business formation consulting companies are available to make the process of a company set up in Dubai easier than ever.

Pros of Company Set Up in Dubai

1.Various Set Up Options

In UAE, you have the option for business set up in mainland, offshore, or free zone. Each type of business set up has its own features and benefits. Understanding the functions and benefits of each will help you determine the right location for your set up.
For example, depending on your type of business, you may benefit from the tax-free environment and 100% ownership that free zones offer. On the other hand, you may prefer the freedom to operate in any part of the emirate that comes with mainland company structure. In any case, you are sure to find a suitable business set up in UAE that meets your needs and requirements.

2.Growing Economy

Dubai is host of a healthy, growing economy. As such, it provides numerous opportunities for businesses to thrive, grow, and develop. Dubai has one of the largest economies and GDP in the Arab world, which is a testament to it’s status as an ideal location for business set up.
Moreover, UAE offers comprehensive and transparent business procedures, which makes the entire process of setting up and operating a company more clear. This, coupled with a stable political situation and abundance of resources makes it an ideal location for starting a business.

3.Low Import Duties

UAE enjoys an open trade policy, and resultantly there are low import duties. This makes it an ideal place for operating a company and carrying out business activities. The cost of importing different raw materials is quite reasonable thanks to the low import duties. Hence, it is a favorable location for business set up.

4.Diverse Industries

UAE offers the opportunity for company formation in a wide range of industries. From manufacturing to services, you can surely find success in all industries. A company formation consulting company can help you set up in the right set up structure, according to your industry.

Cons of Company Set Up in Dubai

1. Trade Limitations

If you are setting up a company in a free zone, then you will experience trade limitations. In other words, you will be restricted to performing all business operations within the confines of that free zone. This can be considered a limitation of a company set up in UAE.
However, depending on your type of business, you should have no problem performing business activities within the confined geographical area. Moreover, it is possible to obtain an agreement with a distributor in order to operate in the mainland.

2. Local Partner

For setting up a business in the mainland, foreign companies must have a local partner who owns at least 51% of the company. This is often taken as a limitation of business set up in Dubai, as owners believe that they will lose the autonomy of their company.
However, most local partners act as “silent partners”, meaning that they do not interfere in any operational decisions. Thus, the autonomy of operations is retained with the owner. Furthermore, there is the option to set up a business in a free zone in order to retain 100% ownership of the business

3. Confusing Set-Up Procedures

For those unfamiliar to UAE’s laws and procedures, company formation can feel like an extremely confusing, difficult process. However, this is not the case. With the help of a specialized company formation consulting business, such as IBG Consulting, business set up becomes a quick, smooth, and easy process.

Therefore, if you are interested in starting up your own business in the UAE, then contact us at IBG Consulting. As one of the leading company formation consultants in Dubai, we will help you reap all the benefits of a company set up in the UAE, without any hassle or stress.

 

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