Select the emirate to incorporate a company
First, decide on the emirate to set up a business, especially if the access to a sea port or an airport and related logistics are critical for the functioning of the business. Ensure that the emirate and the free zone are connected to such facilities.
VAT exempted free zone
UAE imposes 5 per cent VAT on taxable supply of goods and services at each step of the supply chain. Only a few major jurisdictions enjoy the status of VAT- exempted free zones. However, it is also pertinent to note that all business transactions do not come under the purview of VAT legislation. For start-up companies, attractive licence packages offered by VAT-exempted free zones is a good option to grow their business. As per modus operandi of a business, a consultant can give better advice prior to incorporation.
A wise investor should not get attracted to cheap packages and services. Low cost company set-up packages usually have a lot of limitations.
All free zones do not offer facilities such as offices, warehouses or land. If your business requires any of these facilities during the business set-up or afterwards, it is important to opt for a free zone that offers such facilities. Some free zones offer five star infrastructure while some provide average facilities. Investors should visit the premises or check photographs before booking the facility.
Cheap is expensive
As everyone knows, any cheap product or service becomes expensive in long run. A wise investor should not get attracted to cheap packages and services. Low cost company set-up packages usually have a lot of limitations.
After the implementation of several new laws regarding the operation of companies in the UAE, it has become all the more important to approach a professional expert for advice on setting up a company. An experienced business consultant can throw light on laws impacting the type of business. He can guide on all the requirements of the investor including third party approvals, residence visas and banking support.
The writer is Founder & Managing Director, Aurion