The Corona virus epidemic has taken the world by storm. Life has come to a standstill, and businesses are feeling the full effect of it. But, will the situation of business improve once the virus is dealt with? Or will the virus leave a seminal impact on the UAE economy? In this blog, we talk about the possibility of a business set up in UAE during Corona virus.
The Show Should and Must Go On
For anyone who has set up a business in the UAE knows the country is equipped with the right resources to combat any natural or human calamity. Moreover, the government has strategically placed lock downs in the 7 states on odd hours to ensure daily lives of the inhabitants are not affected. In this way, small to mid sized businesses are able to operate.
Needless to say, the Emirates have taken commendable measures to tackle the disease, and all the essential shops are open for the general public. Besides, certain industries, such as media and advertising, car rentals and other service based businesses are fully-functioning without any hindrance.
Speaking to one of the rental car businesses in Ajman, the owner told me that there was an even greater influx of customers. Because, the patrons are afraid of getting infected by the local cab drivers. So, here is what you should do for a business set up in U.A.E during Coronavirus.
Select A Business Activity
After assessing UAE for its merits and demerits, you need to select a business activity. It should be based on your capital, expertise, and risk analysis; among other factors. You will also need to decide on the company structure and jurisdiction.
There are mainly two options with regards to setting up a business in UAE – Mainland and Free zone. Both have their own pros and cons.
Get A License
Barring ammunition, alcohol and medical supplies, a trade license is a mandatory requirement to setup a business in UAE. It ranges from 6000 AED to 20,000 – depending upon your business domain. The biggest benefit of having a general trading license is that you get tax exemptions on all forms of revenue. Click here to read about the required documents to get a license
Another significant advantage of a general trading license is that you can trade internationally without any restrictions. Companies having a general trading license can also apply for multiple visas for their workers. Not to mention, sponsor visas for friends and family.
Also, due to the lock down situation, various free zones have started granting rent waiver and various other relief packages to small and medium sized enterprises.
What If You Are A Freelancer?
If you are a tutor or a scuba diving instructor let’s say, then you would want to apply for a freelancer visa. The UAE government provides a freelance package to a one owner company for a year in less than 7000 AED. However, under this license, only one visa is applicable and a single business activity is allowed.
Corona Virus might have sent ripples across the world, but the business landscape of the UAE is still in an upward trajectory. We hope this blog helped you understand the pre-requisites to a business set up in UAE during Corona. As always, Emirates Express is the best place to setup a business in UAE.
