What should you think about if you decide to open your business in the UAE?

Looking from Russia, the UAE seems like a great place to spend everyday work: sunny, modern, technologically advanced, ergonomic... But do they welcome daredevils who decide to come and open their own business?

Choosing the UAE to start a business has obvious advantages.

Russian tourists do not require a visa to enter the UAE — An international passport and a return ticket are enough, that is, you can arrive without going through additional procedures and begin to scout out the situation. And to open a business, as well as employment, a resident visa is required. It will also be useful for renting an apartment and opening a bank account.

You also don’t have to worry if you haven’t finished learning Arabic a little. Experts assure that in the UAE you can find a common language with the outside world in English.

— In the UAE, it is absolutely not necessary to know Arabic to find a good job — a high level of English will be enough, — assured Christina Tantsyura, managing partner of SKY Consulting Group, member of the EurAsia Gulf Cooperation Council. — This country is quite comfortable for building an international career, finding a job and moving, unlike, for example, India or China, where knowledge of national languages will be mandatory.

Diving into the intricacies of business registration, we note that you do not need to look for a local partner.

— Among the advantages — to register a legal entity you do not need a local sponsor or partner, any foreign citizen can open a company and receive a residence permit in a couple of weeks, — Andrey Khvalei, director of Mansors UAE, clarified in a conversation with Synergy Times.

The country has two official languages — Arabic and English. All documents submitted to local authorities can be written in English, which greatly simplifies the process.

Andrey Khvalei, director of Mansors UAE

As for a higher education diploma, it is needed. And not even at the stage of organizing a business, but when applying for a work visa.

In the UAE, for many professions, a properly legalized and certified Russian diploma of higher education will be sufficient. Of course, having a double diploma or international certificates, as well as knowledge of Arabic, increases the chances and level of future salary, but is not a mandatory requirement, with the exception of a number of positions (accountant, financial director, safety engineer and others).

Kristina Tantsyura, managing partner of SKY Consulting Group, member of the EurAsia Gulf Cooperation Council

If there is no higher education, as the expert warned, positions higher than clerk/waiter/cleaner/junior assistant manager/assistant cannot be obtained even with many years of experience.

But you need to think about the choice of jurisdiction.

— In the UAE, — warned Andrey Khvalei, — There are free economic zones, the rules of which are different, especially the requirements for accounting and reporting.

The expert also recommended paying attention to tax accounting.

— The corporate tax, introduced on June 1, 2023, has a number of features. Moreover, in some cases it can be completely avoided, but you will still have to report, — Khvalei added. — Fines in the UAE are high, so it is better to delegate accounting and tax accounting to specialists.

The expert called opening a corporate bank account one of the most important and difficult issues. You will need to collect a fairly large package of documents in English, including a resume, a company business plan, personal account statements, etc. The procedure may take 1 month or more.

— By the way, about sanctions. There are none, — warned Christina Tantsyura. — But! Banks study documents in great detail when opening an account, and believe me, they know how to use Russian verification services for both people and companies. Therefore, check yourself, including checking for namesakes, and prepare supporting documents in advance if you have worked in a sanctioned company in the past or have a namesake subject to sanctions.

Kristina Tantsyura advises: do not keep the Russian name of the company when opening a business in the Emirates. This will greatly interfere with opening an account; the bank may see this as a threat to withdraw funds or evade taxes in the Russian Federation, so this may be grounds for refusing to open an account.

As for the type of activity of the future company, Christina Tantsyura advises to pay attention that in the UAE there are rules regarding the compatibility of business areas.

— There are those that require additional permits from related government bodies (catering, medicine, a number of types of trade, beauty salons, car rental), — she clarified. — A number of activities require a physical office. In addition, for mainland companies a combination of trade types and services is impossible, but in a number of free zones it is possible to combine different types of activities without problems.

Advice: banks really don’t like companies with more than three types of activities, — noted Christina Tantsyura, — and also when organizations combine different types of activities — for example, trade and services. Therefore, first register a company with the most basic types, and after opening an account, add the necessary ones.

Differences await an employer who is accustomed to doing business in Russia when hiring employees.

— The process is strictly regulated by law. Each position has its own minimum requirements, which, on the one hand, complicates employment, on the other — clearly establishes all rights and obligations between employer and employee, — added the expert.

It would be a mistake to ignore the rules of etiquette in force in the country, says Christina Tantsyura. It would seem that these are details, but they can ruin even the most carefully constructed business plan.

— Learn UAE business etiquette, — the expert advised. — The Emirates has a special oriental mentality and a large number of traditions observed over the centuries. And their knowledge can greatly facilitate the life and networking of foreign entrepreneurs. Take the time to consult both with agencies that help expats integrate into the local business environment, and with existing businessmen. In the Middle East, it is critical to establish yourself as a tactful and polite person who respects local customs.

Key advice from an expert:

— Play according to the rules established in the country and specific jurisdiction. Business registration and support services are very developed in the UAE, so it is better to use the services of specialists to complete all procedures successfully and as quickly as possible.

Andrey Khvalei, director of Mansors UAE