INTRODUCTION OF BUSINESS WITHOUT LOCAL SPONSOR IN THE UAE:
Without a local sponsor, the “mainland business setup” is commonly used in the market, but with the passage of time, the legal meaning changed. For presence in the uae this
Change will help you to understand the correct structure and avoid the outdated assumptions regarding compulsory local sponsors or shareholders.
Compared to the 2020 law amendments, foreign investors particularly need a local UAE national with at least a 51% share, mostly in mainland limited liability companies, or a service agent for certain professional licenses and branches. This is called “local service agent” or “local sponsor.”
A business set up in the UAE without a local sponsor means the international investor can enter as the sole shareholder in the commercial register, and there is no need for the UAE national to comply with agency requirements or formal shareholding.
SHARJAH FREE ZONE BENEFITS:
If you want to start your business in Dubai but are worried about a local sponsor, then you have to start your business in the Sharjah free zone. Free zones are those areas where overseas investors own their businesses with full ownership and get benefits from the UAE government in the form of tax exemption and fewer regulations.
Sharjah is located near Dubai, and setting up a business in its zone can tap the Dubai market, offering the world’s best in both markets and access to the Dubai market for foreign ownership, with resources, talent, and clients.
Dubai and Sharjah zones both serve business activities on a large scale, from manufacturing and IT to consultancy and logistics, giving more relaxation to businessmen to set up their businesses in different sectors.
SELECT THE RIGHT FREE ZONE FOR YOUR BUSINESS:
Every free zone has its own authority, different rules and regulations, and benefits. So choose the free zone’s best one, which is suitable for your business; consider some important instructions while selecting the zone.
- Nature of your business.
- Office requirement.
- Location benefits like the Dubai markets.
- Infrastructure and available facilities.
For consultancy or expert help to register your business in free zones that offer a business cost calculator to better understand how you can register a low-cost or budget setup in a free zone.
BUSINESS LICENSE PROCESS:
After selecting the right free zone for one’s own business, next apply for the business license. In Sharjah, the business license process is very simple and straightforward; you can quickly get your license.
Process steps.
Business plan:
Submit business objectives, the service or product plan to offer, and the target market with a brief outline.
Identification documents.
Identification documents required to process a license, such as a passport, etc. If you are not a resident of the UAE,
Office space.
Virtual or physical office space is required, depending on the free zone requirement.
Business name.
If your business name is available, then the free zone authority will approve it.
Once your business is registered, you will receive your license and be legally eligible to start your business activities.
BUSINESS INFRASTRUCTURE AND OFFICE SETUP:
After setting up a business in the Sharjah free zone, the office is an important part of your business structure. Mostly free zones offer different options like shared
workspaces to private companies. This is suitable for small business startups and low-cost businesses.
Mostly, business services are offered by free zones.
Virtual office;
No need for the physical location of your office
Co-working space:
Suitable for small business startups and low-cost budgets.
Information Technology infrastructure:
Free zones provide IT infrastructure facilities, like telecommunications, which are useful for small investors.
REGISTRATION FOR VISA AND TAXES:
After establishing a business, you need to follow compliance with the UAE government tax regulations. Many businesses set up in the UAE, even in the free zone, are also registered for VAT if their annual revenue reaches AED375000.
However, Freezone offers visa services that legally allow you to sponsor your employees and also yourself. You can apply for multiple category visas, depending on the free zone offered by the investor visa to the employment visa.
BUSINESS MARKET:
Classify your business with operational and legal features. Now pay your full attention to grow your business with an online presence because it’s too important. For building strong connections with clients, you need to use social media platforms such as LinkedIn to get potential clients in the uae and globally.
Inside the UAE, networking with the business community is too important. Attend business events, seminars, and workshops to connect with entrepreneurs. A free zone also provides services and helps to expand your reach through partnerships.
CONCLUSION:
Business setup in the UAE without a local sponsor is possible. Registered as a business in the Sharjah free zone, you can retain full ownership of the business and keep your business away from the local sponsor complexities and access the Dubai market.
Sharjah Free Zone is a smart choice for all those entrepreneurs who want to set up their business in the UAE because the license process is streamlined, there are tax benefits, and there are cost-effective office solutions that make it a more attractive place.
