Trading In Electronics And Electronic Goods Business Setup in UAE

If you're seeking for Trading In Electronics And Electronic Goods business setup in UAE, you'll need reputable business people by your side. Dhanguard is one of the trusted names & has adapted to UAE's cutting-edge business environment.

Company formation in UAE is complex, but not for us. As business setup consultants in UAE, we can handle Trading In Electronics And Electronic Goods-related situations. The UAE has diversified its economy to provide worldwide business opportunities, and it's not an exception for an Trading In Electronics And Electronic Goods firm. The government is incredibly adaptable, and it continues to increase the number of incentives available to new, established, and growing Trading In Electronics And Electronic Goods businesses.

Why Choose Dhanguard as an Trading In Electronics And Electronic Goods Business Setup Consultant in UAE?

• Aware Of Legal Formalities
• Updated With UAE Business Rules & Regulation
• Smooth Registration Process
• Time & Cost Saving

Choose One Of UAE's High-Demand Business Area For Your Trading In Electronics And Electronic Goods Company

UAE provides extensive opportunities for Trading In Electronics And Electronic Goods business in terms of growth & earning tonnes of profit. These UAE business setup locations in free zones, mainlands, and off-shores are excellent choices for entrepreneurs looking to start and grow an Trading In Electronics And Electronic Goods business in UAE.

Start Trading in Electronics and Electronic Goods Company in UAE

The United Arab Emirates is one of the top consumer electronics and appliance markets in the world. According to the Euro Monitor, after Hong Kong, the UAE ranks second in the world in terms of consumer electronic use per capita. With the UAE's population rising at such a rapid rate, and Expo 2020 just around the corner, this activity is expected to explode. The electronics market in Dubai is well-known. The well-organized chain of merchants and wholesalers is the major reason for it becoming a desirable destination for electronic buyers. Furthermore, sophisticated stocking and storage facilities, as well as a long-standing reputation for dependability, have all aided in the growth of this sector.

The UAE's overall consumer electronics turnover is expected to be around USD 2.9 billion. Consumer electronics are in high demand due to re-exports and vacationers. Due to low import duties and direct supply from manufacturers, prices in Dubai are 15 to 20% lower than in other marketplaces in the region.

How can you start an electronics company in Dubai?

To begin trading in Dubai, you must first obtain an electronics business license. It can be organized as a limited-liability corporation (LLC). There are 40 various electronics trading activities to choose from; depending on your needs, you must choose the choice that best fits your company's description.

Pointers you should follow

Recognize Your Local Competitors

The first step in beginning any firm is to do a thorough analysis. As a result, go to your local electronics store and find out:

• What exactly are they up to?
• How much do they have on hand?
• What pricing tactics do they employ?
• What city are they in?
• How many employees do they have?
• What are their hours of operation?
• How much do they pay in salary?
• What kind of rent are they paying?
• What are the different brands that are available on the market?

Registration and licensing

To avoid any problems, the most important step is to formally register your firm and get a business license. Above all, registering your firm separates your personal and business assets and responsibilities. As a result, if you're thinking about how to establish an electronics firm, you should think about registering it first.

Business plan

The following are essential elements of a solid business plan:

• The Company's Name (Use the business name generator tool to save time deciding for name)
• A brief description of your company
• You'll sell a list of gadgets with prices on it.
• Job Roles for Mission & Vision
• SWOT analysis
• Examining the market
• Strategy for sales
• Source of funding
• Estimated revenue
• Advertising Strategy
• Business Expenses
• Growth Plan

Customers

It's critical to know who your target market is. As a result, there are a few things you should learn about your local customers. As an example-

• What is your city's most popular brands?
• How much does your average customer spend on a monthly basis?
• What features of items do your local customers prefer, such as a double door refrigerator or a single door refrigerator, window air conditioning or split air conditioning, and so on?

Investment

For all of the latest electronics devices, as well as a variety of other products such as store fixtures, lease payments, employee compensation, and advertising, the electronics business requires a substantial capital expenditure.

Location

The location of a store is critical when it comes to attracting customers. A company's performance is best in high-traffic areas. As a result, if a store's location is conveniently accessible to all, demand will increase, and the store's prospects of survival will improve.

Choosing the proper products has a direct impact on your company's growth and popularity. Furthermore, there are two options for obtaining the goods:

• Purchasing directly from wholesalers based on your assessment of consumer preferences and budget.
• Agreeing to work with a brand or purchasing a franchise so that they can keep track of all your inventory. You can also order any specific brand products that you believe are in high demand in your niche.

Many activities can be combined into a single license if they belong to the same activity group. In the Jebel Ali Free Zone in Dubai, a rising number of Japanese and South Korean enterprises have begun operations. Those dealing in products made in China, Korea, Thailand, and Malaysia are doing quite well because their products are priced very competitively.

Overview

The term "offshore" refers to a situation in which company investors seek to invest in an offshore jurisdiction in order to benefit from tax exemptions. The tax advantages have become increasingly popular among corporate investors over time.

As a result, most countries have taken the necessary steps to become popular offshore jurisdictions.

The United Arab Emirates is no exception on this front, as it is one of the most sought-after locations for persons in the offshore industry to launch an offshore firm. This guide focuses on the various factors to consider while forming an offshore business in the United Arab Emirates.

The United Arab Emirates: A Popular Offshore Jurisdiction

You've probably heard that company owners and entrepreneurs are focused on the UAE as a place to launch their firm. The UAE has made it easy to start a business, whether it's a food truck or an accounting firm.

The following question is: What is an Freezone in the United Arab Emirates?

The answer can be found below.

The United Arab Emirates has a long history of being a stable and tax-avoidant jurisdiction. The UAE has never been blacklisted as a country that fails to comply with anti-money laundering legislation because it complies with all international requirements.

The directive and the agreement with the OCED (Organization for Economic Co-operation and Development) have also not been signed by the country. In light of this, offshore businesses incorporated in the UAE are now one of the most effective safeguards for investor confidentiality and rights. Furthermore, the Arab Emirates offers a dependable and stable financial system for offshore enterprise UAE operations.

When it comes to an offshore jurisdiction, the Emirates Jebel Ali Free Zone Authority (JAFZA), Ras-Al-Khaimah Free Trade Zone (RAK), and Ajman Free Zone have shown to be advantageous.

Freezone Advantages

The Advantages of Creating an Freezone in the United Arab Emirates

• There are no taxes or customs duties.
• Profits are fully repatriated.
• It is permissible to have 100 percent foreign ownership.
• The corporation only needs one shareholder and one director to be registered.
• The company's capital can be in any currency.
• There is no requirement that the funds be deposited in an offshore bank account.
• The privacy is beneficial to the stockholders.
• Opening a corporate bank account through an offshore corporation is a cheap and simple process.

How to Form an Freezone in the United Arab Emirates?

In order to establish an offshore business in the United Arab Emirates, you must go through a series of steps. In Ras Al Khaimah, forming an Freezone is a simple and straightforward process that can be finished in a couple of weeks. The procedure is as follows:

Choose a Business Name

The company's name must first be validated with the Registrar. The words insurance, bank, building society, cooperative, fund, Municipal, Chamber of Commerce, trust, Royal, chartered, finance, mutual fund, Emirate, and Emirates must not appear in the firm name. Finally, the firm name must include the words Ltd. or Incorporated.

Fill out an application form.

After deciding on a company name, applicants must complete an application form and submit a collection of supporting documents, which include:

• The shareholders' and directors' identities must be verified.
• The shareholders' and directors' addresses must be verified.
• The shareholders' and directors' curriculum vitae.
• A well-thought-out business plans.
• Photocopies of the directors and shareholders.

Individuals and corporate business entities submit documents in different ways. The next section contains all of the necessary information.

Submission of the Documents in Question

Following the collection of the necessary documents, they must be submitted to the appropriate authorities, who will assess them and provide the necessary approvals.

Draft MOA and AOA.

Following that, the Memorandum of Association (MOA) and Articles of Association (AOA) must be written in English, as this is the most practical language for international company.

After the documents have been prepared, they are inspected by the authority; once approved, you can start your business.

Open a Bank Account in a Foreign Country

The third step is to open an offshore bank account, which allows business owners to conduct transactions with more convenience. Here's a step-by-step explanation on how to open an offshore bank account  that will help you understand the entire process.

Offshore jurisdictions also assist business owners in forming an offshore corporation and establishing an offshore bank account in various places. An anonymous offshore bank account can be opened using the same procedure.

Remember that an offshore firm can only conduct business in the UAE if it opens an offshore bank account in Ras Al Khaimah and buys real estate. In contrast to an onshore firm in a Free Trade Zone, an offshore corporation does not qualify for a resident visa in the UAE.

Features and Regulations of UAE Offshore Incorporation

• The company's capital can be any amount, divided into any number of denominations.
• One shareholder and director are the bare minimum.
• There are no bearer shares or differential classes of shares allowed, and all shares must be completely paid when allotted. There is, however, no necessity that the capital be deposited in a bank.
• On UAE off shore incorporation corporations, 100 percent foreign ownership is permissible, as well as 100 percent tax and duty exemption.
• It is possible to open a corporate bank account in a bank in Ras Al Khaimah, United Arab Emirates.
• The Company must appoint a registered agent (legal firms, auditors, and consultants) from the approved list of registered agents maintained by UAE Free Zone.
• The UAE Free Zone is home to the Offshore domicile.
• The investors do not need to go to the authority to form the company, but they must sign the forms at the registered agent's office.
• Only if there is a suspicion, will audited financials be requested.

Start your business today in the fastest growing jurisdictions in the world: UAE

RAK and JAFZA are the two main jurisdictions in the UAE that offer Offshore Companies. Both are “tax-free” jurisdictions, meaning they have no income or corporation taxes and allow 100% foreign ownership. Over 40 nations have Double Tax Treaty agreements with the UAE.

Offshore companies can open multi-currency accounts in the UAE and conduct international business. They are, however, prohibited from doing business with UAE residents or having physical locations in the UAE.

RAK and JAFZA both have their own set of advantages. Although RAK is the most cost-effective option, JAFZA is the only Freezone that is legally able to own property in Ras Al Khaimah.

Offshore companies in the UAE should not be confused with free zone companies in the UAE. Free Zone Companies are onshore companies that are allowed to do business in Ras Al Khaimah under specified conditions. They are also subject to the 0% corporate tax rate, but they are able to seek residency in the UAE for its shareholders, directors, and workers.

Both RAK International Companies (RAK ICs) and JAFZA Offshore Companies are required by local company legislation to hire an approved registered agent.

JAFZA Freezone Incorporation

In 1985, the JAFZA was established. It is an industrial region that surrounds the Jebel Ali Port, one of the world's busiest shipping ports, and allows foreign enterprises based there to take advantage of the free zone's specific benefits. These include a 15-year tax-free period for corporations, no personal income tax, no import or export taxes, no currency restrictions, and easy labour recruitment.

Jebel Ali is about an hour's drive from Ras Al Khaimah, the UAE's capital city, and is just outside of Ras Al Khaimah. Just beyond the port area lies the Al Maktoum International Airport, which is slated to be the world's largest airport in terms of both freight and passenger volume.

The Freezone was established in 2003 by the Jebel Ali Free Zone Authority (JAFZA), in collaboration with the Ras Al Khaimah Government, under the Jebel Ali Free Zone Offshore Companies Regulations 2003.

The following are the main characteristics of a JAFZA Freezone:

• Shareholders — There must be at least one shareholder, and corporate shareholders are allowed. All corporation paperwork must be authenticated for international corporate shareholders.
• Corporate directors are not permitted, and a minimum of two directors is necessary. The public registration does not provide information about the directors;
• A secretary is required in every business. A company director might also serve as the secretary of the firm.
• Share Capital - There is no requirement for a minimum share capital.
• Annual Reporting - Accounting records must be kept for a period of ten years from the date of preparation. To study and report on accounts, the corporation must appoint an auditor (from a pre-approved list).

The following are the main advantages of registering an offshore corporation in JAFZA:

• A hundred percent foreign ownership is not required under the JAFZA Offshore Companies Regulations;
• Local Real Estate Ownership - The JAFZA Offshore Firm is the only Freezone allowed to own local Ras Al Khaimah real estate directly. JAFZA offshore corporations can own most properties in Ras Al Khaimah, however both Free Zone and developer clearance is necessary.
• Shares in Local Companies — Despite the fact that Offshore Companies are prohibited from doing business with UAE residents, the authorities allow Offshore Companies to own shares in both Free Zone and Onshore (LLC) Companies. Documents for usage in the United Arab Emirates, Bahrain, Saudi Arabia, and Qatar do not require attestation.
• Local Bank Account — To conduct ordinary international transactions, an Freezone can open multi-currency bank accounts in the UAE.
• Shareholder/Director information - Shareholder and director names are not required to be listed on a public registry.
• Inspection - The registrar has the authority to appoint inspectors to look at an Freezone's affairs. All inspection fees may be owed by the company's owner.

Ras al Khaimah Freezone Formation

Ras al Khaimah, about an hour's drive from Ras Al Khaimah, is one of the seven Emirates that make up the United Arab Emirates. With manufacturing accounting for 26% of GDP, RAK has the highest level of industrialisation in the UAE. Its reputation has been based on a business-friendly investment environment and low costs. RAK's business costs are 25 to 50 percent cheaper than the UAE average, allowing businesses to maximise their return on investment.

The Ras al Khaimah government established the International Company structure, commonly known as the RAK Freezone, in September 2006. These are governed under the International Companies Regulations 2006 of the Ras Al Khaimah Free Trade Zone Authority.

The following are the main characteristics of a RAK Freezone:

• Shareholders — There must be at least one shareholder, and corporate shareholders are allowed. All corporation paperwork must be authenticated for international corporate shareholders.
• Corporate directors are permitted, although a minimum of one director is necessary. The public registration does not provide information about the directors;
• A secretary is required in every business. A company director might also serve as the secretary of the firm.
• Share Capital - There is no requirement for a minimum share capital.
• Annual Reporting - Accounting records must be kept for seven years from the date of preparation. The accounts, on the other hand, are not required to be filed with the RAK authorities.

The following are the main advantages of forming a RAK Freezone:

• 100% Foreign Ownership - No local equity is required under the RAK International Company Regulations.
• Shares in Local Companies — Despite the fact that Offshore Companies are prohibited from doing business with UAE residents, the authorities allow Offshore Companies to own shares in both Free Zone and Onshore Companies. In the UAE, Bahrain, Saudi Arabia, and Qatar, documents do not need to be authenticated.
• Local Bank Account — To conduct ordinary international transactions, an Freezone can open multi-currency bank accounts in the UAE.
• Fast Incorporation - After receiving all application and due diligence papers, RAK IC will normally register a company within one week.
• Shareholders and directors' names are not required to be listed on a public registry.

Why Choose Dhanguard?

For international entrepreneurs and investors, establishing a company in the United Arab Emirates opens up a world of possibilities. Our knowledgeable staff would be happy to assist you with your UAE Freezone.

Offshore business formation in Ras Al Khaimah is one of our UAE Freezone formation services.

Our company consultants are well-versed in offshore incorporation procedures and can assist you in completing the process without making any mistakes. They have the ability to comprehend business needs and create personalised solutions to meet those goals because they have industry experience.

Please contact us immediately if you are interested in forming an Freezone in the UAE; we would be delighted to assist you.