5 Ways to Open Business in the UAE

Entrepreneurs are often interested in how to establish a business presence in the UAE and what rules will apply in this case. In this article, we will look at the main options to open business in the UAE as well as the features of this process.

To do business in this country, you need to understand that its legal system is based on both the principles of the civil code and the Islamic Sharia Law. Except where such provisions would be contrary to UAE law, the country recognizes and permits the concept of freedom of contract. This allows the contracting parties to regulate their relationship as they wish.

5 Ways to Open a Company in the UAE

Essentially, there are five variants for foreign residents who are looking to conduct business or commercial activities in the UAE:

•  Trade from abroad – this form of trading allows a foreign company to trade in the UAE from their home country, thus saving on the need to physically establish a presence in the Emirates. However, this option is usually applicable only to specialized services and goods. Foreign companies may find it difficult to establish the relationships necessary to grow and expand their business without having a physical presence.
• Doing business through an agent or distributor – this option again avoids the need for foreign companies to establish a physical presence in the UAE and allows foreign companies to effectively use agents or distribution links in the local market. However, before entering into any such agreement with a local party, thorough due diligence must be carried out.
• Opening a local company – in general, there are three main opportunities available to a foreign investor: opening a local company within the UAE, opening a company in one of the many free zones, offshore company (also called International Business Company).
•  Joint venture – allows a foreign investor to obtain a shareholding and a role in the operation and management of their venture in the UAE while benefiting from the participation of a local partner. The local partner may contribute financially or through technical skills or local connections and reputation.
• Merger and acquisition – the final strategy for foreign companies to enter the UAE market is to acquire or invest in an existing UAE company or business. In the UAE, both the purchase of a share and the acquisition of an asset are possible.

If you are interested in opening a company in the UAE and cannot choose the method you need, then you should definitely turn to professionals. Specialists with many years of experience from Dynasty Business Adviser will help you understand all the nuances, as well as provide further support. Already hundreds of people have used their services and got their business in the Emirates.