7 Essential Factors For Successful Business Setup In The UAE

The UAE has a promising economy that offers fast-paced growth and stability for businesses. The government’s commendable actions over the past decade have completely transformed the country’s business landscape. The exceptional quality of life in various cities of UAE, the remarkable business security, and the overall ease of doing business make UAE the most popular location for business setup in 2023.

The exceptional quality of the UAE market is it has scope for all types of businesses. From small start-ups to industrial-scale organisations, the UAE promises growth and success to companies in different industries. The decisive factor is how well your business is set up in the UAE. The initial setup stage lays the foundation for a successful business. So, if you plan a business setup in UAE, you must take special care during the initial stages.

Let’s take a quick look at some of the essential factors that will make it easier to understand the process of setting up a business in the UAE –

1) Structuring Company Values & Goals

Before a business owner can even think of proceeding with a business setup in UAE, they need to have a clear vision for their company. What are the company’s values and goals? UAE is a highly competitive market, so not having a clear picture in advance can cause major losses. The best way to handle this dilemma would be to chalk out a plan for five years that clearly defines the company’s targets, vision, expectations, and values. Doing so will offer a sense of direction to the business, which is necessary for moving to the next step – picking a business location.

2) Choosing The Right Location

When there’s a proper plan in place, the next step would require choosing a location that’s right for setting up your business in the UAE. It isn’t unknown that different areas have different rules, market structures, and favourable industries in the UAE. Therefore, the location a business owner picks will significantly impact the overall business growth in the years to come.

As compared to a Dubai mainland company, a business setup in a Free Zone can have several added benefits for business owners.

Free Zones allow 100% foreign ownership, tax benefits, easier immigration processing, and office support services. These benefits make Free Zones quite popular among foreign business owners. However, choosing the right location depends more on your business type, customer base, and industry-related specifications. You can also consult a business setup specialist in the UAE to understand the various benefits and limitations the different locations may have in the UAE.

3) Taxation Processes

Before initiating a business setup anywhere in the UAE, a business owner must carefully understand the various tax liabilities applicable to a business type. The Ministry of Finance recently announced the implementation of a 9% corporation tax on net income above AED 375,000, which would apply to all businesses and individuals operating under a commercial licence in the UAE beginning on June 1, 2023.

However, residents and citizens of the country continue to pay no income tax on their personal earnings.

4) Understanding Currency Exchange Rates

Overall, the UAE has a very stable currency rate, so you need not worry much about exchange rates when investing. However, when setting up a new business in the UAE, the business owner must have highly efficient financial planning. The setup processes may require steady upfront investments, so you must have the funds available.

You must also carefully analyse the currency conversion rates and other charges related to foreign transactions while creating a budget plan for business setup. This will allow you to invest seamlessly and avoid unnecessary delays and hassles with the setup process.

5) Recruitment & Workforce

Locating, hiring, and retaining talent is the key to business success in UAE. As mentioned earlier, the UAE is a highly promising market but also presents stiff competition for business owners. Most top businesses have regional offices in the UAE, so a new company must have a highly efficient recruitment plan that ensures quality hiring and maximum retention. As understood during TASC’s Making Emiratization A Success 2023 event on recruitment challenges, most businesses with in-house recruitment face challenges with locating talents, meeting salary expectations, and retaining skilled employees.

However, organisations that partnered with the top recruitment agencies like TASC could overcome the challenges effortlessly. Due to the in-depth market knowledge and access to interior candidate databases, professional agencies can help companies with talent hiring. The experts can also help build an efficient payroll and benefits plan that ensures maximum retention.

6) Compliance Regulations

Companies in UAE must meet the Emiratization compliance rules set by the government of UAE. According to the Emiratization rules, every company in UAE must hire UAE nationals on a half-yearly basis. The number of UAE nationals to hire depends on the size and industry of the business. Earlier, the rule required private companies with more than 50 employees to increase the hiring of UAE nationals by 1% every six months. However, recently, the administration implemented new changes that require companies with 20 to 49 employees to hire 1 UAE national by 2024 and another by 2025.

A significant challenge for foreign entrepreneurs is understanding the changing laws of Emiratization. As highlighted during our Making Emiratization A Success 2023 event, Emiratization presents many opportunities for foreign companies as it diversifies the workforce and ensures streamlined local operations in the UAE. Partnering with a professional business setup service provider can help you maintain compliance, avoid penalties, and explore the benefits of local hiring.

7) Business Setup Outsourcing

Business setup outsourcing is one solution to all the complications. Setting up a business in a new location is never easy. One has to understand the local markets, find the right customer section, and create brand awareness to ensure success and growth. These activities only become more complex, time-consuming, and expensive with in-house management as they lack sufficient local understanding.

Outsourcing your business setup project to a top corporate services agency provides instant access to local business establishment experts. These masterminds have decades of experience in the UAE, so they can quickly sort out the best location, scale, and brand awareness strategies for your business type. So, you not only experience hassle-free and cost-efficient setup but also get quality hiring and efficient business performance.

Partner With TASC Corporate Services For A Seamless Business Setup

Business Setup in Dubai or any other Emirate isn’t that complicated once you develop a clear understanding of the various affecting factors. The best option is to take a professional approach and contact a top corporate service company that offers complete business setup services in the UAE.

With TASC Corporate Services, you get peace of mind, knowing that experienced business setup consultants in Dubai are handling the business setup process. Your investment is safe, and you can stay ahead of the competition with efficient strategies and future planning. So don’t take risks.

Get in touch with us now for end-to-end business setup in UAE to ensure success and growth.