Dubai is becoming a sought-after destination for starting a business. Boasting a growing economy, safe environment, and top-of-the-line infrastructure, a number of foreign and local investors find it very appealing to set up their business in Dubai. But just like any jurisdiction, there are certain factors that should be taken into consideration before they establish their business in this Emirate.
Dubai Business Laws
Dubai, or UAE in general, is very welcoming, especially to business investors. Still, business owners and foreign entities need to adhere to the laws and regulations set by this Emirate. This is a list of basic commercial laws that you need to keep in mind in case you are planning to establish or form a company in Dubai
Commercial Transaction Law covers everything related to business and commercial transactions. Aspiring entrepreneurs should know this law like the back of their hand so they will be properly guided on importing and exporting goods for trading. It also includes regulations and processes pertaining to business premises, trademarks, and unfair competition.
The government of UAE ensures that employees, both local and of foreign nationality, receive fair and just compensation in accordance with the industry’s standard and is given fair and equal treatment by their employers. It is necessary for aspiring business owners to take to heart UAE’s Labour Laws and regulations to ensure that they provide equal pay and opportunity to their workforce.
In light of the recent changes about VAT, it is imperative for every business owners and aspiring entrepreneurs to know the changes regarding business and commercial taxation. In the new tax legislation, the Emirate will impose taxes onbusinesses operating or related to gas and oil industry and branches of financial institutions operating in the Emirate.
Business Structure Allowed
UAE is free much open to business structures and models. But certain restrictions are imposed by some Emirates to ensure trade fairness and order. For Dubai, here is the list of permissible for commercial trading:
Establishing a branch or representative office connected to a foreign headquarter is also permissible and accepted, but with certain restrictions. If you are planning to set up a company in this Emirate, it would be best to know what kind of structure is applicable to your business model. Consulting with a capable business setup firm in Dubai would help you make informed decisions about expanding your business in UAE.