Am I an entrepreneur? I want to be my own boss but do I have it in me to become a successful business owner? How do I analyse my business skills and goals? These are some of the questions all entrepreneurs ask themselves before starting a new business. If you are not sure about any of these questions don’t worry, Sovereign Group is at hand to offer free and confidential initial business start up advice.
Each international jurisdiction presents unique challenges to start-ups. The Gulf Cooperation Council Countries (UAE, Saudi Arabia, Qatar, Bahrain and Oman) have been actively encouraging expat entrepreneurs to invest in these countries. Various incentives including zero corporate tax, zero personal income tax, full repatriation of capital and profits, 100% ownership have been on offer through some free business zones.
The United Arab Emirates remains the most entrepreneur friendly country in the Middle East. However the expat should particularly be aware of some basic start-up issues. Shareholding of non-GCC nationals in the legal structure of a limited Liability Company is restricted to 49%. Majority shareholding remains vested in a GCC national. However this legal structure is challenged by every day practice. A UAE national can, for a fix annual fee, agree to become a silent partner holding majority shares. Minority shareholder can be given powers as an attorney of the majority shareholder to manage the company without any interference. Rights of the expat investor can be further strengthened by trust and side agreements between parties. Sovereign Group has built strong relationships with UAE nationals who have proven their committeemen to investors. We will be happy to make an introduction.
Sovereign Group strategic partners can assist you in sourcing customers, staff and supplies for your business at deeply discounted prices. Finding the right location for the business is a major task. Through our real estate partners we can find best location for your business to enhance revenues.
Sovereign Group has a dedicated team to seamlessly process your trade license application. The process of incorporating your business in UAE starts with reserving a trade name and obtaining an initial approval from the Department of Economic Development. Sovereign Group will usually submit your initial approval applications at the same time as submitting their trade name approval application. The documents needed for this step vary depending on the business structure of the company. For certain businesses special permissions are required from various ministries. At this point special approvals required from ministries will be submitted. Sovereign Group has thorough knowledge of these requirements and will assist you with right documentation.
The procedures following the DED’s initial approval vary depending on the business structure. Sovereign Group will submit all of the documents you needed for the initial approval, as well as a few others, including the initial approval, the trade name approval and the final tenancy contract for the office or warehouse. If you are applying for a limited liability license, you will need to prove your capital requirements by depositing the required amount in a commercial bank and obtaining an undertaking from that bank that the deposited amount will only be released to the managers upon proof of company registration.
If one of the partners of the LLC is an existing company, a copy of that company’s memorandum must be translated, notarized at Dubai Courts needs to be submitted along with the rest of the required documents outlined by the DED. The clerk at the DED will assign a time to pick up the approved application. Return at the declared time, pay the final fees and submit an application to be inscribed in the ministry’s commercial register. Once the formal license is awarded, the company must apply to become a member of the Dubai Chamber of Commerce and Industry.
Following the company formation, our clients obtain UAE residence and employment visas. Sovereign Group can assist in opening corporate bank accounts to support your company with internationally recognised banks such as HSBC, Standard Chartered and Citibank.
