The UAE offers an attractive environment for businesses to operate in due to its infrastructure and legislation that favour business. When restructuring or forming a company in the UAE, it is important to comprehend the regional business environment, and the legal, regulatory, and tax frameworks. The following considerations should be made in the UAE while starting or reorganising a business:
1. LEGAL BUSINESS STRUCTURES
The UAE provides several legal business structures, including partnerships, Limited Liability Companies (LLCs), sole proprietorships, and free zone enterprises. Choosing the best legal structure depends on the type and scope of your company’s operations because every legal structure has its advantages and disadvantages.
2. BUSINESS LICENSES
Depending on the nature of the business and the company’s legal structure, a specific license may be needed. Commercial, professional, and industrial licenses are a few examples of license types.
Restructuring a firm may involve changing the share capital, the company’s legal structure, or merging with another company. Legal procedures must be followed, and the necessary approvals must be obtained.
It is important to understand the tax rules because the UAE will start imposing corporate income tax in June 2023. Refer to our blog for an overview of UAE Corporate Tax (CT) for more information.
5. LABOUR LAWS
Companies operating in the UAE must follow regional labour laws, which address issues such as minimum wage standards, working hours and employment contracts. It is essential to understand these laws to prevent legal issues.