Planning to start your new branch in the United Arab Emirates? Well, we appreciate the thought. But, before getting into the procedures, you need to consider several seemingly simple but inevitable factors regarding the country you are heading to. It is always better to get a head start first and it is right here!
The United Arab Emirates is a global destination for both tourists and investors. The exotic locales, friendly environment, rich traditional culture, investor-friendly laws, welcoming government, and high health care system are a few sweet spots that adorn the land. Starting a business is not a hit and miss. So, don’t miss these general facts about UAE to become a smash hit!
The government of UAE is pleasingly welcoming, but equally unwelcoming when you fail to conform to the prescribed moral conduct, rules, and regulations. Chances of getting into fine, court cases, social embarrassment is very high in UAE. Familiarizing yourself with the following laws may help you to stay out of trouble.
- Consent is important! Taking photographs or videos of another person without their permission is a sin
- Disrespecting any religion is a no-no.
- Making indecent gestures or swearing can even lead you to jail.
- Touching and kissing in public is not allowed.
- Sharing private space with your opposite gender is a sin unless he or she is bonded by marriage or family ties.
Types of Permissible Business Establishments that Foreign Entity can invest
There are five types of business establishments in which a foreign entity can invest, they are
- An investor can apply for a ‘Permanent Establishment”
- Set up a UAE ‘Free Zone Entity’
- Enter into a ‘Commercial Agency Agreement’
- setup a ‘Branch Office’
- Register a ‘Civil Company’(As of now, a civil company is limited to Sharjah and Dubai)
For each company established in UAE under Commercial Companies Law, the foreign national should find one or more local partners or a UAE national partner. The foreign national can only hold 49%(at max) of the company’s capital, while the remaining 51% (at least) should be held by the respective local partner. However, there are exemptions. If your company is engaged in any of the following activities, you can skip from the share of the local partner.
- Companies involved in Transmission and Distribution
- Free Zone companies
- Companies included in the Oil and Gas industry
- Companies involved in Treatment of Water
- Companies that produce Electricity and Gas
- Foreign Banks
Here are Some Assorted Facts
- Business Hours – The working days in UAE are from Sunday to Thursday whereas Friday and Saturday are holidays. The normal office time is 8.30 am to 5.30 pm. And, banks are an exemption from this timing. Banks are open on the same days but between 8 am to 1 pm.
- Local UAE Time and Code – UAE Time Zone is GMT+04.00, and the International country code is + 971 (UAE)
- Language – Arabic is the official UAE language, but a large percentage of the population are well-versed in English, Hindi, and Urdu in addition to Arabic.
- Currency – Dirhams (Dhs) or AED (Arab Emirate Dirham) is the currency of the UAE.
- Religion – Though Islam is the main religion, UAE respects the sentiments of every religion.
Transportation – The most common and preferred method of transportation in Emirates is Taxis. Also, the buses operate cheaply with fares as little as 1Dhs.
Know more about UAE from our experts. Al-Arabiya is one of the best business consultancy companies in UAE and has been extending our service every hour a day.
We are always pleased to see you grow.