Looking for a suitable business in the United Arab Emirates? If you own a business in the UAE you need to be aware of what opportunities are available.
As a business owner, there is a great difference between owning a business in your name and owning 100% of the company. Many people are involved in company formation in Dubai but not all will fully understand what options are available to you. Owning 100% of a company and possessing control and resources are key criteria when choosing where to establish a business. The size of a business and revenue does not determine how much control your company has over its operation. Factors such as geographical location and quality of administration will play a major role when deciding where to set up a business. Here are five of the most popular ways you could own a business in the UAE. Own 100% of your business Owning 100% of your company sounds enticing. There is no chance of someone else benefiting from your business profit or being involved with its administration. There are, however, some essential requirements. To actually own 100% of your business, you need to be able to show evidence of significant assets and assets that can be counted as a business asset. An asset may be an asset that is tangible or intangible. Think of an asset like a letter from a customer and an asset may be a database or staff list. Assets have to have a monetary value and be valued objectively. They also need to be adjusted to account for inflation and increase in property values. The same asset can be housed in multiple entities for tax purposes but if only one of them is approved by the UAE Federal Tax Authority (FTA) and owns the business then the assets may belong to all of them. Own 10% of a business Another option is to only have a stake in the business. The key requirement here is that you need to be able to demonstrate a reasonable assumption of control over your business in order to get involved in it as a passive investor. In order to be considered a passive investor, you should be able to prove a reasonable ability to own and exercise control over the business through the agreement. You could be the sole individual investing in the business or you could be part of a group of investors. An investor has the right to meet with business owners and may even sit on a board of directors. You will need to meet key rules of the document and give guarantees that you have control over the business. You could be part of a group that shares investment opportunities in the business. 3% of your business Being a part of a group of investors in the business doesn’t mean you have 100% control. What it does mean is that a small group is making decisions about the business, but that you still have a major say in the running of the business. A third party usually becomes involved in matters like the hiring of employees or business decisions. Another major requirement is that you will need to demonstrate the ability to exert decision making authority over the business. If you want a business venture to succeed, you should have the ability to make firm decisions if your business is structured this way. If you have a strong income and able to invest and can account for assets, you may want to consider taking a third or even a minority stake in the business. 9% to buy a business Some people see the potential for a business investment as a way to diversify their portfolio and get some capital appreciation in return. Sometimes investing in a business can be a good way to save and get experience at developing a business. In other cases, it is better to buy a company outright. There are a number of different ways to invest in a company. Depending on your personal financial situation and how you see the investment, you may want to invest 9% or more of your overall assets. You are not restricted to investing directly in the company but you can also invest indirectly through your financial institution or financial company, or direct to a company on the stock exchange. This becomes a business investment or a share purchase. If you invest in a business directly or indirectly, the business entity will own the entire holding. Regardless of whether you invest directly or indirectly, it is a very worthwhile venture to consider. The benefits of owning a business in the UAE outweigh the risks and it is worth looking into if you want to establish your business. In this discussion, it is important to put in consideration the needs of the business. This is an opportunity to test your business knowledge and investing in a business on the mainland could be a rewarding, lengthy process. Looking for start new company, visit at dubaibusinesssetup.ae.
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