One of the reasons that many foreign businesses are moving to the United Arab Emirates is the ability to operate out of the free zones that allow for zero taxes and 100% foreign ownership of companies.
Additionally, company formation in the Emirates, including in Ras al-Khaimah (RAK) is designed to the simple, streamlined and very user-friendly. As an up and coming center of business in the UAE, many experts see RAK as the ideal place to invest with a business-friendly environment and a genuine interest in attracting foreign companies to their free trade zones.
With all this in mind, there are still some very common mistakes that foreign investors and businesses will make during the formation process. There are specific steps that have to be completed in a particular order, including pre-approvals and final approvals before registering the business.
Not Hiring a Legal Consultant
With all the details involved in company formation, it is important to hire a legal firm with a specialized practice in either mainland or free zone (offshore) business formation. There are some documents that will need to be developed by the law firm, along with documents that will need to be checked before they as submitted to the respective authorities.
Having a legal team review documents and work with you in your company formation will ensure there are no delays or errors during the process.
Selecting the Incorrect Business Category
Throughout the free zones, a business must choose a business category that will have an impact on the free zone and subsequent area where the company can locate. Identifying the correct business category is a critical first step and will either allow the business to expand or result in restrictions as to what the business can do in the future.
Another benefit to hiring a law firm is to verify the information about the free zones under consideration for the business formation is accurate. Often information online is outdated or incorrect, so having a representative on the ground in RAK is essential. Contact STA Law Firm for more information.