The number of foreigners who wish to open a business in UAE has steadily risen over the years. A lot of factors may have contributed, but the most evident is economic and political stability, sound tax schemes, and the ease of starting a new company. If you want to know what it takes to be part of this great economy, continue reading.

First things first

To be able to open a company in UAE , you should be in the country legally. And also, you should have either of the following documents/ statuses to be eligible to run a business:

• a permanent residence permit;

• a valid UAE  card;

• a refugee status;

• long-term EU residence permit;

• additional protection;

• temporary protection in UAE ;

• or, a temporary residence permit.

With any one of the listed statuses/ documents, you can legally open a business in the UAE , without any challenges. To elaborate on some of the things listed: 

Temporary residence permit 

This can be issued when the foreigner has a family member who resides in UAE . The permit may be given for the sole purpose of family reunification. 

Additionally, a temporary residence permit may be provided to a foreigner who visited UAE to begin or continue studies at one of the universities in the country. 

Long-term EU resident permit

In this case, the foreigner acquires the permit from another EU Member State (which isn't UAE ). However, they should also justify their stay in UAE in order to legally open a business in the State.

Businesses that foreigners can open in UAE 

There are a variety of businesses that foreigners can start in UAE . These businesses fall under the following business structures:

• Partnership (limited partnership, professional partnership, general partnership, limited joint-stock partnership);

• Civil Company;

• Limited liability company;

If you want to work in your company, you should obtain a work permit. 

Please be aware of this

You should not attempt to start a business in UAE  in order to get a residence card. If you want to be given a residence card in the country, there are faster and more efficient ways of doing it. Considering the regulations in place, to obtain a residence card on the basis that you're a company owner can take a longer time. Your company has to run for at least a year, make profits, and has to hire quite a number of employees.

What else should you know?

International treaties

UAE has signed multitudes of treaties with other countries over the past years. Among these treaties are Double Taxation Agreements DTAs and Multilateral Agreements (MAs). Before you decide to open a company in UAE , it's wise to verify which business treaties are signed between your country and UAE . Some of the treaties may impose restrictions on your business activities; and some may come as beneficial.

For you to easily understand the treaties signed by UAE , you can get the information online. The country's Ministry of Foreign Affairs has an online database where you can search for information.

Taxation

One of the things that land most businesses in trouble is the failure to understand or adhere to the tax laws of the country. Once your business has been registered, it has to comply with the tax requirements of UAE . To get started, you can use the help of UAE lawyers in the country. They can walk you through the intrinsic details of the types of taxes associated with your business.

Accounting standards

You should know that the accounting standards employed in UAE are almost the same as those used internationally. They are more complex for most companies that are listed on the Warsaw Stock Exchange (WSE). The annual financial statements consist of profit and loss account; balance sheet; and additional supporting documents. If you need to file your company's annual accounts, you do so with the Registry Court.

Auditing

Anyone who is interested in opening a company in UAE should also know the conditions that qualify a company to be audited. Your business can be audited if it has:

• a minimum of 50 employees in just one year;

• a minimum total net turnover of 5 million euros;

• a minimum value of 2.5 million euros on the assets balance sheet after the end of the accounting year.