BUSINESS STARTUP khaleej times | ADVERTISING SUPPLEMENT
WEDNESDAY, SEPTEMBER 16, 2015
Invest T in your ideas Get inspired and have your business up and running with the help of professional advisors ■■ Farhana Chowdhury
here are some of us that have been bitten by the ambitious bug. But no matter how great a conceptual idea may be, we require the proper channels to bring it to life. The right kind of information, knowledge of how businesses work as well as a sharp eye on fluctuating market trends are essentials when walking down the path of entrepreneurship. Foreign visitors can easily establish a company in the UAE through partnership with an Emirati businessman. This arrangement is known as a Limited Liability Company (LLC), and as per the Commercial Companies Law (CCL), the company ownership between an Emirati and a foreign national must be split into a 51:49 ratio. Another option is to set up base in one of the country’s free zones, such as in RAK Free Trade Zone. Under this scheme, the foreign national is exempted from the 51 per cent requirement and can hold 100 per cent total ownership over the company and its assets. Note that all companies must be registered with the UAE Ministry of Economy as well as the Chambers of Commerce and Industry in the emirate it plans to operate from. Entities that have an existing branch in another country can also
List of free zones in the UAE Abu Dhabi • • • • • •
Masdar City Abu Dhabi Ports Company Abu Dhabi Airport Free Zone Khalifa Industrial Zone ZonesCorp twofour54
Dubai • • • • • • • • • • • • • • •
Dubai Airport Freezone Dubai Silicon Oasis Jebel Ali Free Zone Dubai Multi Commodities Centre Dubai Internet City Dubai Media City Dubai Studio City Dubai Academic City Dubai Knowledge Village Dubai Outsource Zone Enpark Intl Media Production Zone Dubai Biotech Research Park Dubai Auto Zone Gold and Diamond Park
establish a UAE presence through various ways, including entering a commercial agency agreement. There are, of course, other legalities involved in setting up a venture. Visitors can pursue their dreams in no time, thanks to the number of UAE-based organisations that are exclusively dedicated to help clients
• • • • • •
Dubai Healthcare City Dubai Intl Financial Centre Dubai Logistics City Dubai Maritime City Dubai Flower Centre Intl Humanitarian City
Sharjah • Sharjah Airport Free Zone • Hamriyah Free Zone Ajman • Ajman Free Zone Authority Umm Al Quwain • Ahmed Bin Rashid FZ Ras Al Khaimah • RAK Free Trade Zone • RAK Investment Authority • RAK Maritime City
Fujairah • Fujairah Free Zone • Fujairah Creative City
set up their businesses. They also offer special services and advice to guide inspired professionals and business owners in line with the UAE law. From submitting documents to the Department of Economic Development to preparing memorandums, translations, etc., these or-
ganisations act as a coordinator to ensure the client is informed and assisted throughout the procedure. Many extend beyond the initiation process such as suggesting ideal office locations, introducing clients to potential manpower units, outsourcing IT services, and even finding a local sponsor. Once you have set your plan in motion, you will need a reliable mode of transportation to go about your daily duties. Opt for the economical and sturdy Toyota Hilux, exclusively distributed by Al-Futtaim Motors. As a hub that welcomes businesses of every nature, financial support is easily available in the UAE. Hopeful businessmen are spoilt for choice with hassle-free instalment plans for funds alongside loans at competitive interest rates. Look out for special products and services offered by Mashreq, ADIB, Dubai First and Gulf Finance. Intertwined with technology, setting up business in the country has become more convenient. Businessmen can apply for a trade licence, certification, and other services online at any time of the day and receive an approval in due time. This not only saves you the trouble of standing in long queues but also prevents the hassle of finding parking spaces in busy business districts. — farhana@khaleejtimes.com
LOOKING TO SET UP YOUR BUSINESS? AVAIL RAK FTZ’S 15TH ANNIVERSARY OFFER Register today and enjoy a reduction of AED 2015 on all RAK FTZ Business Packages. Ras Al Khaimah Free Trade Zone provides the right elements for a successful business, including licence and visas, facilities, 100% foreign ownership and zero taxation. Call: 800 7111 Visit: www.rakftz.com Follow:
/ rakftz
II
B U S I N E S S S TA RT U P
WEDNESDAY, SEPTEMBER 16, 2015 | ADVERTISING SUPPLEMENT | khaleej times
Seven things every fresh businessperson should know
■■ Farhana Chowdhury
1 2
Be informed: Prior to setting up your business — be it in the UAE or abroad — find out everything you need to know to pursue your idea. This means being informed of the country’s residence laws and regulations related to business operations.
Find out for yourself: The Internet is a melting pot of information, which is why it can be difficult to distinguish facts from false details. Do not make serious decisions solely based on online information. Aside from digging up basic information from the web, visit or call up the right government authorities and find out the steps you need to take prior to setting up a business.
3
Pick the right licence category: Before you proceed with registrations of any sort, make sure that the category you’re applying for allows you to conduct your intended activities and fits your business model. While it’s not uncommon to undergo changes to accommodate business activities, avoiding a mistake at this stage can save you time, cost and effort.
4
Do not sign anything without a legal agreement: In case you’ve decided to go down the Limited Liability
Company route in the UAE, ensure that you and your partner have laid down the terms and conditions in a legally approved document and both agree to it. Do not leave things to word of mouth or verbal trust. This will not protect you in the eyes of the law.
5
Seek out a spot best suited for you: Location does play a big role in successful operations. Find out what area would be best to set up your headquarters. For instance, if you were involved in logistics, a free zone that offers wellrounded warehousing facilities and proximity to ports would be ideal.
6
Look at varied finance options: Discuss your requirements with a bank official before opening an account or sealing a loan deal. Avoid signing any documents on the same day and take time to gather information from different banks. Weigh out your options and choose the one that best suits your budget. Confirm all bank charges and opt for a flexible payment scheme, so you can maintain healthy credit scores.
7
Approach an authorised business set-up specialist: If you’re not too keen on doing all the research yourself, you can place your trust in a specialised organisation that offers services and advice in line with business start-ups. You can
easily find a list of accredited organisations through government-based websites to avoid scammers. Do not hesitate to ask your selected advisor for the company’s portfolio and other details before you decide to leave the fate of your business ideas in their hands. — farhana@khaleejtimes.com
Terms & conditions apply.
Setting up a business venture in the UAE may not be an easy task, but it’s not impossible. Here are some tips to help you get started
Starting at AED
68,500
291177
TOYOTA.AE
800
TOYOTA 869682
khaleej times | ADVERTISING SUPPLEMENT | WEDNESDAY, SEPTEMBER 16, 2015
B U S I N E S S S TA RT U P »
III
Mashreq
In tune with digital trends SMExchange, an online platform by Mashreq, opens up a wealth of resources, information and tools to help SMEs in dayto-day businesses
»
Al-Futtaim Motors — Toyota
Drive down the sturdy economical route The 2016 all-new Toyota Hilux features a six-speed automatic transmission coupled with a newly developed frame that boast the lowest total cost of ownership in the pickup segment Al-Futtaim Motors, exclusive distributor of Toyota in the UAE, has introduced the 8th generation of the world’s most popular commercial pickup truck, the all-new unbreakable Toyota Hilux, featuring tougher refreshed styling, a newly developed frame structure, an SUV-like interior and better core performance to deliver the best results in its class, reinforcing its leadership of the pickup segment. First launched in Japan in 1968, the Hilux is a symbolic Toyota vehicle and has been renowned for its toughness, durability and ability to perform under extreme conditions and in the toughest terrains. Celebrating the same credentials, the 2016 all-new
Hilux now features a six-speed automatic transmission coupled with a newly developed frame, making it more sturdy, efficient and economical, while boasting the lowest total cost of ownership in its segment. “The first Hilux was brought to the UAE 40 years ago, and since then, it has sold more than 150,000 units to date, becoming one of the most relied upon commercial vehicles in the country, and a major staple in the country’s construction firms, farms, oil fields and more. It has cemented itself as the best-selling commercial truck across the nation, spear-
The new Hilux was designed with the driver in mind, taking an extensive look at the human element. The new additions to the vehicle were introduced to support a healthier and safer workforce that is able to deliver consistently better results. — Jon Williams
heading the light commercial vehicle market in the UAE,” said Jon Williams, Managing Director of Al-Futtaim Motors. “The new Hilux was designed with the driver in mind, taking an extensive look at the human element. The new additions to the vehicle were introduced to support a healthier and safer workforce that is able to deliver consistently better results,” he added. Available in single and double cabins, the all-new Hilux comes in 2.0L and a 2.7L petrol engines, or a 2.4L diesel engine, and in 4WD and 2WD choices. The new generation Hilux has improved ride comfort and easier driveability, thanks to a newly developed frame and redesigned suspension, with longer leaf springs and forward/ rear facing shock absorbers, and employs an all-new six speed automatic transmission for a smoother ride. The new transmission translates into enhanced fuel economy figures of up to 15 per cent over the last generation Hilux — depending on the choice of petrol or diesel engines — while the redesigned tougher rear suspension makes for better reliability to support the Hilux’s enhanced deck usability and towing capacity.
The growth of the digital enterprise continues unabated and is touching our lives in a variety of ways. The way we communicate, shop, dine, socialise, bank, seek information, etc. Digital media is changing the consumer behaviour dramatically and in a disruptive manner. Small and Medium Enterprises should embrace this change with speed and try to benefit from this disruption. The opportunity to engage in formal and informal digital business networks is a very obvious one. The benefits from these networks include acquiring new customers and supplier relationships. In addition, networking activities are associated with the creation of a broader customer base, reaching out to larger firms and a more geographically dispersed market. Information and experience sharing, social contact, useful business and technology, and best practices are some of the benefits. For small firms, joining a conventional formal business network typically carries entry barriers in terms of high costs, lack of time, perceived benefits, etc. The availability of the network itself was under question for many SMEs. Digital networks and social media are platforms that lower these barriers significantly for small firms. However, that does not mean there are no pitfalls. To harness the power that this digital revolution brings, small companies need to join “correct and relevant” platforms, which is easier said than done. The proliferation of the content, network and platforms makes it difficult to cut through clutter to make efficient use of the limited time and effort that one can spend. Few
Rohit Garg, Head of Business Banking at Mashreq
It is our constant endeavour to launch innovative services that help the SMEs develop, evolve and use technology for their benefit. This platform is another step in that direction. — Rohit Garg simple steps like having a clear objective for joining, knowing who you are targeting to achieve and fixing frequency of visits can help. Unlike personal visits to social media platforms, the time invested for the SME should have a clear outcome set. For the SMEs in the UAE,
Mashreq has launched a platform called SMExchange. Open to all SMEs, this free-to-join business community platform offers resources, information and tools that can prove highly beneficial in day-to-day businesses. It also features an online marketplace that allows SMEs to advertise their products and services to other users of the platform, helping them to expand their client networks. Talking about the platform, Rohit Garg, Head of Business Banking at Mashreq, said: “It is our constant endeavour to launch innovative services that help the SMEs develop, evolve and use technology for their benefit. This platform is another step in that direction. The SME community is rapidly growing and evolving in the UAE which as a country has one of the most evolved digital infrastructure on the globe.”
IV »
WEDNESDAY, SEPTEMBER 16, 2015 | ADVERTISING SUPPLEMENT | khaleej times
B U S I N E S S S TA RT U P
New strategy from government sector for better business environment
Abu Dhabi Islamic Bank (ADIB)
A strong commitment to UAE Entrepreneurs and Business Owners SMEs are the backbone of any economy and an important driver of the UAE’s economic growth and future prosperity. — Mahdi Kilani
Mahdi Kilani, Head of ADIB Business As a leading financial institution, Abu Dhabi Islamic Bank (ADIB) has always thrived to satisfy the needs of its entrepreneur and business customers across. In 2009, ADIB Business was established, putting SMEs as a key customer segment and supporting their vital role in driving the country’s economy. Proceeding from its belief in the importance of SMEs in driving the economic growth of the country and their needs from day one, ADIB has cooperated with Thomson Reuters to launch BusinessPulse.ae in 2013. The website is an ultimate source to empower UAE SMEs by providing entrepreneurs with a reliable source of information, tips and advice necessary to empower
them through different stages of their business life cycle — ignite, enrich and growth. The free portal offers access to success stories, networking events and seminars, in addition to useful business templates and special offers designed by its partners. “SMEs are the backbone of any economy and an important driver of the UAE’s economic growth and future prosperity,” says Mahdi Kilani, Head of ADIB Business. At ADIB Business, customers enjoy a comprehensive suite of tailor-made solutions designed to serve their diverse business needs. At early stages, a business owner will need basic banking services in order to start building financial relationships and this mainly includes business ac-
counts and financial transactional services. Financing products differ from short-term to mediumterm including Business Finance, Business Covered Cards, and Business Fleet Finance. Once a business starts growing, its needs expand along with the owner’s requirements. ADIB Business also offers sophisticated products including Working Capital, Asset and Equipment Finance, and Trade Finance services offered by qualified and experienced dedicated Relationship Managers assigned to provide expert advice and oversee every aspect of their banking needs. ADIB Business offers a variety of channels for customers to meet their day-to-day banking needs. From dedicated Business Banking Centres, a wide network of Branches, Automated Teller Machine (ATMs) and Cash and Cheque Deposit Machines (CCDMs), to state-of-the-art Business Internet Banking services, where customers can find the security and convenience of banking with ADIB. In a new step to meet different business requirements and fulfill customers’ needs, ADIB Business launched Point-Of-Sale (POS) Finance, a new financing product based on the receivables generated from ADIB Point-of-Sale (POS) machine when accepting payments using cards, where the receivables are assigned to customer account with ADIB.
Dubai Chamber is constantly working to support business growth through awareness on the latest laws and trends
T
he Dubai Chamber of Commerce and Industry recently organised a workshop for its partners from the government sector to review and discuss the draft Strategic Plan of the Chamber for the year 2016-2021. This is in line with developing future prospects of Dubai businesses and to provide best services to the private sector. The workshop saw the presence of representatives from the Department of Tourism and Commerce Marketing, Dubai Statistics Centre, The GeneralSecretariat of Executive Council of Dubai, General Secretariat of the Supreme Legislation Committee, Federal Customs Authority, Dubai Courts, Dubai Smart Government Department, Dubai Department of Economic Development, Ministry of Economy and Dubai Customs. Essa Al Zaabi, Senior VicePresident, Institutional Support Sector, Dubai Chamber, highlighted the importance of the introduction of the law regulating public-private sectors partnerships in the emirate by His Highness Shaikh Mohammed bin Rashid Al Maktoum, VicePresident and Prime Minister of the UAE and Ruler of Dubai, which he said sends a clear message to investors and businessmen that the government strongly believes in the public-private
Dubai Chamber represents, supports and protects the emirate’s business community sector partnership which is a strong pillar of the economic development strategy. Al Zaabi said: “This meeting complements the efforts of Dubai Chamber in line with its mission to represent, support and protect the interests of the business community in Dubai. The non-profit business organisation focuses heavily on strengthening communication channels with its partners which it believes is one of the important elements for the sustainable economic growth of the emirate’s business environment. “By sharing our future plans, ideas and experiences with our partners from the Government departments we can always serve the business community better,” he said. The Senior Vice-President of Institutional Support Sector, added: “Dubai Chamber has based its new strategy 2016-2021 on its past achievements and successes and has developed this further to align it with Dubai Strategic Plan 2021 and the UAE Vision 2021, while keeping pace with the economic and social de-
velopments witnessed by the emirate, and also in line with the Chamber’s role of a key driver in enhancing the competitiveness, growth and prosperity of Dubai’s private sector.” In his presentation, Khalil Haddad, Director, Strategy and Corporate Development, Dubai Chamber, highlighted some of the most prominent features of the new strategic plan, including its details and alignment with the recommendations of the partners as he also emphasised on the importance of the strong partnership and mutual cooperation for strengthening the process of serving the business community. The participants at the workshop exchanged ideas, opinions and experiences on the role of the Chamber as a representative of the business community while suggesting solutions to the challenges faced by the business facilitator. In order to create a stimulating business environment, Dubai Chamber works constantly to support business growth by organising training seminars and workshops that promote awareness about the new trends and laws that regulate the business environment. The Chamber also strives to promote the spirit of teamwork amongst government entities to work together to stimulate the business environment in line with the needs of the private sector for the overall economic development of the emirate.
ADIB Point-Of-Sale Finance Finance your Business against your Point-Of-Sale Receivables
Financing your business has never been easier. You can now apply for finance to expand your business, pursue new markets or purchase equipment or goods, with the ADIB Business POS Finance. Moreover, you’ll benefit from your ADIB Business Merchant Account, with all monthly fees waived, so you can also keep record and manage all of your transactions with ease. So you see, it’s not just a POS Machine, it’s an ADIB Business Solution! *Terms and Conditions apply. 510860
289221
adib.ae/business-banking
02 6578777
khaleej times | ADVERTISING SUPPLEMENT | WEDNESDAY, SEPTEMBER 16, 2015
B U S I N E S S S TA RT U P
V
Looking to broaden your business?
Gateway to the world
Dubai First offers SMEs loan amounts of up to Dh500,000 with easy documentation, a convenient option for businessmen to meet their cash flow requirements
Ras Al Khaimah Free Trade Zone (RAK FTZ) is a costeffective portal to global markets and one of the fastest-growing free zones in the UAE Ras Al Khaimah is one of the seven emirates that make up the UAE, alongside Dubai and Abu Dhabi. Less than an hour’s drive from Dubai, Ras Al Khaimah offers a strategic geographical location with easy access to fastgrowing markets across the Middle East, Africa, Europe and South Asia. The UAE is an island of security in a turbulent region, offering complete personal and investment safety. The continuous political and economic issues as well as uncertainty in many other countries across the Middle East and North Africa have increased the attractiveness of the UAE and, in turn, Ras Al Khaimah. Today, the emirate has the highest level of industrialisation in the UAE, with manufacturing at 26 per cent of the GDP. This includes RAK Ceramics, the world’s largest maker of
ceramic tiles; Julphar Pharmaceuticals, the Middle East’s largest pharmaceuticals manufacturer; Streit Group, the largest armoured car manufacturer in the world; and several other industry-leading companies. They have contributed to Ras Al Khaimah’s high levels of GDP growth over the past three years — higher than the UAE’s growth rate. The Ras Al Khaimah Free Trade Zone (RAK FTZ) is a cost-effective gateway to global markets and one of the fastest-growing free zones in the UAE. It is the investment destination of choice for more than 8,000 companies from over 100 countries, representing 50-plus sectors. Established in 2000 with a mandate to provide custom-made business solutions, RAK FTZ offers its clients 100 per cent foreign ownership, a tax-free environment, fast-track visas, freedom to source la-
RAK FTZ comprises four specialised free zone parks tailored to individual company needs, including a business park for office clients; an industrial park for heavy manufacturing; a technology park for trading and light manufacturing; and the RAK Academic Zone, which caters to a wide variety of educational institutions and service providers. bour and materials globally, and ongoing business support services. RAK FTZ comprises four specialised free zone parks tailored to individual company needs, including a business park for office clients; an industrial park for heavy manufacturing; a technology park for trading and light manufacturing; and the RAK Academic Zone, which caters to a wide variety of educational institutions and service providers. The free zone also provides investors with choices to suit their specific business needs, such as flexi offices (shared work stations), executive offices (fully equipped office spaces with advanced telecommunications), warehouses in various sizes (including storage space, offices, toilets and pantries), and land for development. In addition to award-winning services, RAK FTZ provides the same free zone benefits — including 100 per cent foreign ownership and world-class ready-made facilities — but at substantially lower costs, allowing higher returns on investment.
Dubai First, a leading consumer finance company and subsidiary of FGB, offers SME Business Loan — a hassle-free financial solution that offers flexibility and convenience to cater to the needs of the small and micro businesses, which represent 90 per cent of the total businesses in the UAE. SMEs are particularly in need of financial services because they need the cash flow to make large investments, are unable to access capital markets as large firms can, and often lack qualified staff to perform financial functions. Recent research indicates that four in five start-ups use personal savings as the main source of finance for initiating their business operations in Dubai and only around 23 per cent of the established companies have accessed bank finance in the last five years. The SME Business Loan from Dubai First facilitates even those that are just a year old, with benefits such as flexible repayment options and competitive interest rates to address the finance hurdles business owners face. Amit Talgeri, the CEO of Dubai First, said: “The UAE economic landscape has undergone substantial transformation in the last 15 years to become more diversified. The SME sector has been a vital component of this growth and the backbone of the economy. It is currently the focus of considerable government
attention, as it is seen as a critical link in the drive for a more robust, innovative and self-sufficient private sector. However, market insights show that SMEs have limited access to financing and the low penetration of bank lending to this sector, estimated to be in the range of 4-5 per cent. This provides a good opportunity to Dubai First as one of the leading consumer finance companies to offer SME finance products. Our strategy is based on building sustainable longterm value through innovation in harnessing a genuine customer experience.” Aimed at small and micro businesses, the SME Business Loan from Dubai First provides an affordable opportunity to a large client segment. With loan amounts up to Dh500,000 and easy documentation, it is a convenient option for businessmen to meet their cash flow and working capital requirements, or to fund their expansion plans. The quick processing turnaround time assures that clients have access to finance whenever the market presents a profitable opportunity. “Since inception, Dubai First has strived to develop a niche reputation in the financial services sector and being awarded the ‘Superbrand’ status, in addition to ‘Best Consumer Finance Company’ by Banker Middle East is a testimony to our efforts,” added Talgeri. Dubai First continuously identifies opportunities in the market and has introduced a wide range of premium products targeting niche segments that are delivered through representative offices across the UAE. Dubai First has benefited from being a consumer finance company in its ability to respond quickly to new market trends, flexibility to turn innovative ideas into value propositions and set new industry standards. The company endeavours to continuously expand its products and services to further enhance the overall value proposition for the customer.
LOANS FOR BUSINESSES THAT THINK BIG
BUSINESS LOANS
You have worked countless hours to see your entrepreneurial dream take shape. Now it’s time to go a bit further with an SME Business Loan from Dubai First. After all, when you have high cash flow and positive working capital, moving to the next level is not a promise, it’s a guarantee. • Loans to businesses of 1 year and above • Collateral free • Easy documentation • Tenure up to 48 months To apply: - Visit dubaifirst.com - Call 800 33 - SMS ‘SME’ to 4743 264458
Terms and conditions apply.
VI »
WEDNESDAY, SEPTEMBER 16, 2015 | ADVERTISING SUPPLEMENT | khaleej times
B U S I N E S S S TA RT U P
Gulf Finance
A name SMEs rely upon Gulf Finance has been funding SME growth for more than 15 years through various types of loans ■■ Suneeti Ahuja-Kohli Small and medium enterprises (SMEs) play a significant role in an economy. In Dubai, SMEs employ around 42 per cent of the workforce and contribute almost 40 per cent to the economy. Gulf Finance, a company founded in 1997, has been providing finance to such companies and helping them grow. In an interview with Khaleej Times, David Hunt, CEO, Gulf Finance, talks about the various aspects of setting up business in the UAE and how small and medium businesses can access finance from them. Excerpts: How do you help prospective entrepreneurs in realising their dreams of owning a business? Gulf Finance was founded in 1997 in Dubai as a provider of growth finance to UAE-based SMEs and we have been servicing the SME sector ever since. We do this mainly by supporting the financial needs of SMEs via a broad range of flexible financing solutions such as Small Business Loans, Business Vehicle Finance, Trade and Working Capital Finance, Business Deposits and Commercial Finance products. We also provide access to a broader support network through our recently launched SME Community, which consists of a network of service providers. This includes auditing firms, management consultants and law firms, specialising in supporting SMEs. When customers require help in a specialist area such as feasibility studies, we put them in touch with a service provider from our SME Community. Essentially, we aim to act as a ‘one-stopshop’ for small business owners and entrepreneurs.
David Hunt, CEO
We also provide financing services specifically targeting newly established businesses operating in the transportation, logistics and travel industries. We do this via our Vehicle Finance loans tailored for businesses that have been operational for as little as three months. These loans are available with amounts up to Dh500,000 and are offered for tenures up to 36 months. How many small businesses have you helped since the inception of company and do you support businesses in a particular industry? With an 18-year track record of providing growth finance to SMEs, we have lent over Dh4.5 billion to more than 3,000 customers. The sectors and industries we lend to are very diversified. Typically, we target small and micro businesses with turnovers from Dh2 million to Dh25 million from a broad range of sectors such as manufacturing, logistics, construction, retail, travel and tourism, food and beverage, and healthcare. How easy is it to set up a business in the UAE? The UAE is a dynamic and fast growing market with a diverse and rapidly expanding population. As the economy and population continue to grow, so does
the demand for various goods and services. This demand is largely catered by a growing pool of SMEs, most of them founded by expats. The UAE has come a long way in introducing new rules and regulations aimed at supporting SMEs with policy makers working to create a business-friendly environment and we do not see many bottlenecks. New initiatives aimed at improving the environment are consistently implemented. For instance, the introduction of Al Etihad Credit Bureau will have a positive effect on the UAE’s lending environment as a whole. There is also the Dubai SME 100 initiative and the Khalifa Fund in Abu Dhabi. What are the main steps to obtaining a business loan? When it comes to applying for a loan to grow your business, we typically look at the following key factors: A strong business model: Companies need to demonstrate a strong business model and a clear understanding of their unique competitive advantage. They need to prove that there is demand for their product or service and that they have the capability to deliver. Management: A strong and credible management team is equally important and the commitment and support of the underlying shareholders to the business is crucial. Transparency on financials, audited accounts and good quality management information: Too often we see SMEs do not invest enough effort in producing good quality accounts. Affordability: When looking at the purpose of the loan, the amount and the repayment term, we need to feel confident that the business can afford it and that it has the ability to repay finance from the cash flows of the company. — suneeti@khaleejtimes.com
Planning to float your own venture? TWS Legal Consultants are specialists in providing professional and personalised assistance to clients who wish to set up business in the UAE
I
t is often the case that businesses are established without seeking legal advice. The UAE laws are very rigorous: licenses are not generic but are specific to the nature of the business activity and location. The Commercial Companies Law and the Trade Agencies Law are the primary federal legislative frameworks controlling commercial activities in the UAE. In addition, each emirate and free zone has its own set of rules and regulations. All UAE businesses, whether industrial, professional, trading or services, must be licensed to operate in the UAE. The historically common option is the formation of an LLC, which provides companies with the flexibility to operate freely in the UAE. However, a major setback with an LLC is that it requires a UAE national to own 51 per cent of the company. While there are agreements, which can be put
Nita Maru LLB (Hons) UK Solicitor and Managing Partner
into place to ensure that this 51 per cent is not equated with actual ownership, management or control of the company, it still creates a natural reluctance for individuals owning only 49 per cent of their own company. Other LLC structures that are lesser known but are in fact very good options include LLC branches, LLC representative offices, and LLC professional licences. Some of these allow for 100 per cent ownership. The corporate lawyers at TWS Legal Consultants are highly qualified in recommending the most suitable business structures to clients as well as providing in-depth knowledge of additional measures to be
taken to ensure optimal business protection and compliance. In response to growing business demands in a rapidly booming economy, the need for 100 per cent ownership is a significant challenge. This has led to the development of free zones, which allow businesses to be owned 100 per cent by their chosen owners regardless of nationality or religion, and to operate within a geographical location. Among other perks, visas are also granted to free zone company owners. The downside? Freezone companies may only conduct business within restricted boundaries of the free zone they operate in. There are various free zones to choose from and it is important to choose the correct one when incorporating your company. Besides being official agents for the Jebel Ali Free Zone Authority (JAFZA), TWS Legal Consultants can assist with a choice of free zone locations across the UAE. TWS Legal Consultants provides professional and personalised assistance to clients who wish to set up business anywhere in the UAE, ensuring timely approvals of authorities in respective jurisdictions. TWS also offers tailor-made solutions to suit specific budgets. For more information contact TWS Legal Consultants