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4 Keys to expand Business in UAE

Dubai is a standard for diversification, but what about its markets? In the era of rising competition, how can entrepreneurs adapt their enterprises to reflect, or even excel in the growth of the Emirate’s economy? Pursuing new income streams is fascinating for any entrepreneur, but it needs meticulous planning and a cool head.

Get it right and you could turbocharge your business. Get it wrong and your business could be seriously hindered. So, what’s the secret to success when it comes to diversifying your business model? Here are six ways to maximize the benefits of business expansion in the UAE:

  1. Do your research

Understand whether you’re on the right track from the get-go. Would you set up a startup without doing any market research? Obviously, not! The same applies to expand your business oversea markets.

Before implementing any changes, gather as much feedback from your client base as feasible and see where you are going wrong, where you can enhance and where you need to tap into new areas.

  1. Be open to new ideas

Don’t get grounded on sustaining your old model. If your company isn’t growing as fast as you want it to be, or if you foretell tough times ahead, increasing your existing model could be a risk worth taking. But you need to be open to transformation, and to some amount, risk.

  1. Examine markets you can easily move into

Reduce uncertainty with a stepping stone approachExpanding your business model doesn’t certainly mean expecting a ‘lightbulb’ moment and then pursuing completely various revenue streams irrelevant to your business. In fact, moving into parallel markets as the opportunities rise could be more profitable and carries less risk.

  1. Don’t neglect your existing customers

Focusing on your core market is significant. Tapping into new income streams can be dangerous if it takes too many resources from your core offering. That’s if your core offering is valuable of course. If you intend to diversify while proceeding to develop your core business, make sure your current customers feel treasured. Keep customers notified of upcoming changes.

Convince them that they are, and will continue, leading to your business, and illustrate this with rewards like customer loyalty programmes, higher engagement through social media, promotional gifts, email marketing and other communication channels.

Setting up your own business has never been seamless. You First – The Business Setup Company – takes care of all your needs from Business Setup Services, Company Formation, Trade License, and more so you can concentrate on what matters – building your business. For more information contact us at: www.youfirstme.com

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You First: Tips How To Start A Business In UAE Free Zone

So, you want to embark on a new business venture in Dubai free zone – but how?

Initially, you need to choose the type of business you want to run. Will, you set up as a freelancer? Or set up a free zone company and hire others?

Setting up as a freelancer can be an inexpensive option, however not all of Dubai’s free zones offer freelance licenses, so you are slightly restrained in where you call home. While, for the free zone company option, there’s loads of choice with both sector-specific and all-encompassing zones on offer.

Here are some ways explained to kick start your business in Dubai FreeZone:

  1. Choose a business activity:

The primary step to establish your business in Dubai free zone is picking on the business activities you need to carry out, as this will influence where you can register your company. The type of license you apply for will also depend on the company formation you wish to carry out – such as commercial, professional services, trading, etc.

  1. Find a free zone

Once you’ve determined your business activities, the next step is deciding which free zone is right for you. There are various factors that may influence your decision, but considering the location of your chosen free zone plays an important role regardless of whether you’re planning to set up a digital company or import/export with more travel.

  1. Choose a company name

Picking a name for your business is challenging no matter where in the world you wish to set up. There are lots of factors to consider from the sensitive to the practical. Is it reliable? Unique>? Attractive? and a lot more.

  1. Make your license application

Now that you’ve chosen what you’re planning to do, where you want to do it and under which title you’ll trade, it’s time to make your Dubai Free Zone company formation official by proposing your application. As a common rule of thumb, you can expect to be asked for some or all of the following:

  • Application form
  • Business plan
  • Colour copy of shareholder’s passport and visa if applicable
  • Board resolution
  • Memorandum and articles of association

When setting up as a freelancer, you may also be asked to provide proof of invoices or work orders.

  1. Applying for visas

You can also make your visa request at this stage. You can apply for your own visa as well as those of your employees and any internal staff you may have.

Whether appealing for your own visa or sponsoring someone else’s, the method is the same: entry permit, medical fitness test, status adjustment, then Emirates ID registration and visa stamping.

  1. Opening your corporate bank account

Of course, you’ll need a bank account to trade seamlessly. Opening a corporate bank account in the UAE is not always smooth and there are plenty of considerations to keep in mind – not least each bank’s eligibility guidelines.

Firstly, you’ll need to ensure you have the right documentation in place. As well as your business licence, you’re expected to need:

  • A corporate account opening form
  • A board of directors’ decision sanctioning the opening of the account, and the signatories to the account
  • A copy of your share certificates
  • A copy of the company’s memorandum and articles of association
  • A copy of your company’s certificate of incorporation
  • Copies of passports for all partners in the company

Dubai free zone company formation made easy

And that’s it! It seems quite easy, isn’t it? Just six steps to get your Dubai free zone business set up. However, just like any company decision, there are potential traps along the way.

Get in touch with You First- The Business Setup Company that provides Company Formation in UAE & Business Setup Company. For proper guidance and set your business in a matter of weeks: www.youfirstme.com

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5 challenges faced by entrepreneurs in Dubai and ways to resolve them!

Entrepreneurs choose UAE to start their business overseas as they’ve researched and are amazed by the accelerated development of the region. UAE is always in the spotlight in the print and electronic media for its groundbreaking developments, reforming foreign investment policies, new startups, and corporate framework. 

Despite all the overlooked rumors about the slow economic growth of the region that crop up after few years, UAE is steadily surpassing the expectations of the current and foreseen investors and entrepreneurs with its next-level development, evolution, and growth.

However, here are 5 challenges that newbie encounter while setting up their business in UAE:

  1. Company Ownership

Forming a Limited Liability Company (LLC) or an onshore company in UAE restrains to have a local partnership with a UAE National. Additionally, norms also describe that investors can only have an ownership of 49% whereas 51% of stakes are upheld by the local National. 

  1. The obligation of a Local Business Partner

As mentioned above, the necessity of having a local national partner is probably the biggest obstacle that comes across the way of young entrepreneurs. As a matter of fact, there are only three ways of forming a company in UAE: Acquiring Professional Service License, Setting up Business in UAE Free Zone, or forming an LLC.  

  1. Possible VAT Application

To date, we all like the tax-free aspects of UAE, which offers excellent pro-business benefits to the corporate world, and apparently, this is the most significant reason that turned UAE into the supreme destination for new entrepreneurs to kick-start their business without any tax burdens. But possibly this is not the case anymore with the announcement of VAT in the year 2018.

  1. Revenue Management

Revenue management is important in the UAE. And not only in UAE but in business, because along with the plethora of opportunities comes along many risk factors too. According to the Association of Chartered Certified Accountants of Dubai, approx. 82% of the new enterprises break due to poor cash flow and funds management. While setting up your business in UAE, you can avail loans from several financial institutions and banks, but ensure that your primary capital obligations and business setup are efficiently managed and implemented.

  1. Cultural & Communication Difficulties

Lastly, the biggest problem is concerning the culture and communication that is needed to be addressed respecting Islamic values. Business communication is required to be separate for men and women and the formal directness and approach are also limited.

How Can Business Setup Consultant Help?

You First – The Business Setup Company is a foremost consultancy firm in UAE with prominence for assisting various clients in setting up their businesses across the region. If you are also scared by any of the above challenges and desire to start up your business in UAE, then talk to our experts who are just a call away for service.

Consult now to our business setup consultant expert at www.youfirstme.com.

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What’s the need of a business partner for entrepreneurs to setup a new company in Dubai?

Typically, foreign investors are often unsure about the type of business they can set up in UAE. Most of them described the reason as the complicated business set up process and need of a local sponsor. So the question that truly needs our consideration is that do you really need a local sponsor/partner for setting up a company in UAE. 

The simple answer to this question depends on two major factors. Firstly, it depends upon the type of business that you are planning to establish and further, whether your business will be based in any of the free zones or not. Understanding these two factors can assist you determine the answer related to your business need.

 Some corporations and business communities compel for a local sponsor however, there are several other options available that do not have any such restriction. To guide you comprehensively, we are putting down some important information below.

  • For setting up a business in UAE, there are only three ways possible for the foreign entrepreneurs i.e. Setting up in Free Zones, Acquiring Professional Service License, and Forming an LLC.
  • If you wish to set up a Licensed Service Company with 100% independent foreign ownership and capital repatriation, then you will need a regional service agent or partner. As implied by the name the licenses will be assigned to the professional service business and the service provider will impose a certain service fee from investors though they have no authority and liability to intervene in business management, operations, and profit.
  • Another way to maintain 100% ownership and profit repatriation, is to set up your business in one of the free zones of UAE. But, you cannot deal with the local UAE market without a local service agent or distributor. There are few free zones such as Ajman Free Zone which does not need a local partnership still some of the collaborative institutions such as banks etc. may ask for a local partner.
  • If not settled in UAE fee zone and the nature of your business befalls under the technical or commercial license category, then you must register as a Limited Liability Company (LLC); and for setting up LLC you must satisfy the requirement of having a local sponsor who sustains the majority of shares.
  • Mostly, the local partners are expected to pay the annual fee, and sometimes they may also oblige a pre-determined percentage of profit or sales.

You First – The Business Setup Company is a renowned consultancy in UAE which has a reputed profile of serving various clients in setting up their business strongly in UAE. We can help you with the process of business set up and license acquisition. Our team is just a call away: www.youfirstme.com

 

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Why UAE is considered as the best country for business expansion?

The nation driven by the diversified administration has set a new action on the world business market. UAE recently sprang to the 11th position in World Bank’s Annual Ranking with regards to ease of doing business. UAE dropped from the 10th place on the list from last year, making this important news for the international investors and ambitious entrepreneurs viewing UAE for business expansions.

Before you take out your laptop and commence making plans on setting up a company or expanding in the UAE, here’s a brief overview that you need to revise.

What does the title ‘EASE OF DOING BUSINESS” ranking actually mean?

‘Ease of Doing Business’ ranking is a year-long report presented by the World Bank. The World Bank ranks multiple nations based on easy business setup systems. However, the report also acknowledges countries that launch a passage of opportunities and infrastructure to ensure the commercial growth of the businesses in the province.

Since UAE is the 11th rank holder in this domain, it meets not just simple business setup requirements, but also offers great rewards and infrastructure to companies ready to invest in this prospering nation.

Now you might be wondering about the factors that made UAE the most sought-after country for foreign investment and why should you opt for company registration in the UAE. Listed down are the reasons that describe the same:

1.      Liberal & New Business Licensing For Foreign Investors

The influx of different types of licenses and liberal compliance regulations for international investors in Dubai Mainland is one of the credible reasons for ease-of-doing-business in UAE. The introduction of prompt licenses, reduced licensing fees, and commercial permits have drawn a lot of foreign investors in UAE in the past few years.

2.      Smooth Real Estate Market

A key action taken by the UAE is the initiation of the ‘Real Estate Investment Opportunity Initiative.’ Not only has this move led to the liberalization of the real estate market in the nation but it has also improved investment opportunities. The highlight of this action is that it enables partial real-estate ownership and abridged procedure for rental collection.

3.      Energy, Online Services & Infrastructure

In the UAE commercial industries or businesses get power connections at the least cost. Moreover, online services have made company registration in UAE a super easy, wise decision. Be its high-speed internet, registration of assets, access to government portals, online lending, online taxation – UAE has got everything.

4.      Friendly taxes & Jurisdiction

A small amount of taxes are applied to companies in the UAE. UAE has an unfolded judiciary system to meet the latest standards. In fact, a distinct tribunal and legal system have been formulated that deals with disputes about foreign investors alone.

 

Are you planning for company registration in the UAE? Make it easier with us: www.youfirstme.com