If you already have a business in another country and are interested in entering the UAE/Dubai market, you are at the right place. Having a presence in the UAE has many benefits, you need to look into all the options available to you. There are many factors you need to consider when making this choice. When entering into a new jurisdiction, it is good to have a business plan and study the opportunities and challenges of each selection.
Considering the multiple options available to enter the UAE market, it is important to understand what the options are. This way you will be able to decide which option suits you the best.
Bottom Line
We have listed below the options available to you to set up a business in the UAE market:
1. Set up a company in UAE Mainland
Setting up a company in the UAE mainland has various options as well. You could set up a Limited Liability company, Branch of a foreign company, or an establishment. Now that the new 100% FDI law has come into effect, it gives foreign businesses the possibility to own their business with no local partner. This option gives most access to the UAE market. There will be no restrictions with doing business within the UAE. You would then need to find out which emirate (Dubai, Abudhabi, Sharjah, Ras Al Khaimah, or the other northern emirates) you would want to set up your license for the business activity you intend to do.
2. Set up a company in a UAE Freezone or an Offshore
There are over 45 Freezone options in the UAE. In this option there will be some restrictions on doing trade in the UAE mainland, this depends on the activity you intend to do. However being in a free zone is useful for getting duty exemptions, tax benefits, and having full ownership and control of the company.
3. Set up Representative Office
It is easy to set up a representative office in the UAE market. With this office, you will be able to do the sales and marketing efforts of your company in the UAE. This way you can improve the brand awareness of your products and services. You are, however, not allowed to buy or sell within the UAE with such a license. The main corporate entity located outside the UAE will have to directly transact with the customers.
4. Use a third-party distributor or franchise in the UAE
In this option, if you are able to find a trustworthy partner you do not need to create a legal entity in the UAE. You can have an agreement with the local entity that already has an existing legal form in the UAE. You can simply earn royalties, franchise fees, or commission income.
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