The UAE has become a business hub for businesses looking for a central location for international expansion. Although the country is business – and tax-friendly with straightforward legislation, it requires some practical understanding and knowledge about the business norms to set up the business. Let’s discuss some of the challenges the companies face while setting up business in the UAE.
1. Setting up the business
Setting up a business can be complicated and could derail the inexperienced applicant, and that’s where you need to take the help of a business set-up partner. It will help to liaise with UAE government authorities on your behalf along the way and spot potential problems before they arise.
2. Obtaining Work Visas and Permits
A foreign employee needs to obtain a work or residence permit to live and work in the country. The foreign entity bringing its overseas employees to the UAE especially needs to follow the visa norms. The company also needs to comply with the regulations laid down by the General Directorate of Residency and Foreigners Affairs and Ministry of Human Resources & Emiratisation.
3. Understanding the tax environment
The UAE has introduced VAT for the first time in January 2018. The VAT rate is low at only 5% and has not impacted the cost of doing business in the country significantly. The Federal Tax Authority (FTA) has stated that it will get tough on companies that are obliged to register for VAT but don’t do so. Penalties include Dh10,000 for late registration, and other fines for late payment and conducting business without VAT registration.
How Can Hallmark Help
We answer your questions on the various challenges in starting a business in Dubai and help you get through it. Our staff will study your requirements and cater to your needs. With our experience and expertise, you can run your business in a hassle-free manner, while focusing on the essentials of your business activities.
