The UAE is the shimmering and modern jewel of the Middle East, where migrants flock from other nations. Attracted by the generous taxation laws and the spirit of innovation that pervade the business world, many entrepreneurs have made a fortune over the last decade. This trend should continue unhindered by the world-wide economic slow-down. However, businesspeople considering moving to the UAE, should heed the following important tips before jetting off.
Setting Up a Current Account for the UAE
There are several formalities to consider before opening up a current account in the UAE.
Plenty of international banks offer current accounts that are catered to businesses based within the UAE. The interest rates, perks and fees that are attached to these current accounts from HSBC and other providers vary considerably, so it’s always good to do homework first.
The opening form for such an account will specify that the account holder has a residence visa, that proves their right to work in the UAE. Also required is the normal identification like a passport, tenancy agreement or bill.
A preliminary bank account can be opened in the UAE with limited account services. It’s not until the opening form is completed with all of the required information, that the account is fully-functional and open.
It’s not advisable to close a current account back in one’s home country. When living and working in the UAE, keep transactions at home to a bare minimum. This will avoid unnecessary tax complications. An offshore bank account can be a useful conduit between a UAE current account and the current account at home.
Setting Up Shop In The UAE
Starting up a business in the UAE is not as simple as renting out an office and funding the operations from overseas. It’s important to do some pre-preparation. As with any business enterprise, firstly study market conditions and the competition. Then create an in-depth business plan. Fund the business through your own resources, the bank and local partnerships. A credible and transparent business plan may attract local support, as well as government support.
In the UAE, the law requires that any foreign business has a local partner, who holds majority interest and has control of the business. The local partner, whether this is a company or individual, doesn’t need to contribute to the start-up capital. This law is currently under review in some Emirate states.
Consult with a highly esteemed lawyer and accountant from the outset. A lawyer who knows what they’re doing, will be able to guide a new business through registration complexities, and ensure that everything is done to protect a company’s interests. An accountant experienced in UAE taxation and accounting, will be able to ensure that all regulatory requirements are followed for the UAE Ministry of Commerce. Once a business is registered, it’s necessary to show the Ministry of Commerce a sizeable amount of investment capital. This amount can vary between states between Â£6,500 to Â£33,500, and is regarded as a guarantee against liabilities.
While the rest of the world flounders in dark economic times, it’s not so gloomy in the UAE. Plenty of highly successful businesses have been launched in recent years. And export and manufacturing are strongly supported by the government, through tax exemptions and free trade regulations. All that’s needed is some meticulous planning, research and preparation. Â