Business in UAE
Starting a business in UAE could take at least 15 days depending on the nature of business. Hiring employees is not so difficult and every business has the option to outsource employees across the globe. The UAE is as called land of free tax that means no tax is paid on the profit so earned by any business organization.
Requirements
The capital for starting a business is to be deposited with the bank or notary public but there is no minimum capital requirement. Any entrepreneur can start the business and can obtain funds from banks by furnishing certain documents and fulfilling requirements. HSBC is the bank which provides new entrepreneurial loans for starting a business in UAE.
The business does not own real estate or any property, it will be started on a lease agreement with the government/ concerning party which can take at least 2 business days for registering the lease agreement.
The organization working as a small or medium business entity should have at least 10 employees working inside the office premises and conducting business activities. A written agreement is made between employer and employee. UAE provides flexibility of working environment to both employers and employees.
Procedure
Following are the steps included in registering and starting a new business in UAE:
- Submit the company registration application with Department of Economic Development
- Submit the Memorandum of Association
- Company documents filing and obtain trade license
- Applying for establishment in Ministry of Labor
- Obtaining social security from General Authority
The organization has to deal with the corporate, employment, industrial relation, and health & social security laws. Any violation of law can lead to a penalty/ imprisonment.
UAE provides investors/ creditor complete protection in settlement of their funds and facilitates business by providing online services. UAE has established the new plan for facilitating investors all across the world as “2015 policy” for reshaping and improving the efficiency of the UAE economy.
Banks in UAE
The following is the list of banks which are operating in UAE and are also listed with the stock exchange:
- Ajman Bank
- Al-Salam Bank
- Arab Emirates Investment Bank
- Dubai Islamic Bank
- Commercial Bank of Dubai
- Emirates Islamic Bank
- Mashreq Bank
Stock Exchange markets in UAE
The first stock exchange in UAE was the Dubai Financial Market, opened in 2000 with $380 Billion market capitalization. More than 50 companies were listed with DFM. Most recent is the Dubai International Financial Exchange (now NASDAQ Dubai) opened in 2005, is the most leading stock exchange between European and Asian Stock Exchanges. There are three stock exchanges in UAE:
Dubai Financial Market (DFM)
Abu Dhabi Securities Exchange (ADX)
Dubai International Financial Exchange (DIFX)
These are regulated by the Securities and Commodities Authority, under federal Law 2000. Any broker wishing to operate in UAE stock market must have the capital of AED 10 Million besides financial guarantees. The central bank licensed the financial institution/ security market which must have principal center of administration in UAE.
Starting a securities exchange business
Each stock exchange market layouts trading rules along with the articles that describe rules and ways to trade securities on the relevant stock exchange.The either way for the security exchange business is to become the member/ stock broker of the stock exchange market or get your account opened with the member/ stock broker which provides you the direct access to stock exchange market. Another way is to get start in collaboration with the member of the stock exchange or have a joint venture with other parties.
(Disclosure: All the information is collected and provided from official and personal resources. This is to provide an idea about starting business in UAE)
article by:
ALI HAMZA
(look4ali@hotmail.com)
Mob. 0092 300 4212168
