How to relocate a South African business to the UAE?

The United Arab Emirates is the best place for business expansion for the investors around the world. Its corporate potential gives foreign companies moving here from Africa and worldwide everything they need to grow. Entrepreneurs can relocate a South African business to the UAE to make the most of the available opportunities there.

Essentially, the UAE has become a better place for running business in the Middle East and North Africa (MENA) region. Together with the strong economy, the UAE offers the potential of global trade and a tax-friendly system. Therefore, many investors are choosing to relocate South African business to the UAE.

With the top-notch infrastructure in the UAE, you get easy access to customers in Asia, Africa, Europe, and beyond. The UAE government welcomes the South African companies and other international businesses with open arms. Also, it has made the corporate setup process way more simple and quick.

Whether, international investors are opening a new business in the UAE. Or, they are moving their already functional corporate operations to the UAE. There are some great perks available to you to enable your business growth.

Smooth visa processes and business-centric corporate laws are the highlight of the UAE. In particular, Dubai offers full foreign ownership in both free zones and mainland. Availability of strong legal support, access to smart banking services, and no personal or corporate income tax are much beneficial.

Key takeaways of South African business relocation to UAE

These are the notable insights of the corporate relocation from South Africa to the UAE.

• The UAE is attractive to the foreign companies looking to grow in the international markets.
• $500+ billion GDP boosting high-income developing market economy of the UAE is driving foreign investments.
• The UAE has around 50 free zones, mostly in Dubai, offering 100% ownership, profit return, and affordable offices or warehouses.
• More than 21,000 African companies are already doing business in the UAE.
• South Africa and the UAE are strong trade partners, sharing goods worth nearly $2 billion.
• Emirates of Dubai, Abu Dhabi, Sharjah, and Ajman are ideal places for South Africans to conduct trade and business.
• South African entrepreneurs can move to the UAE to save themselves from the 28% corporate tax in their native country.
• Dubai is known as the world’s expat capital, because 85% of its population is foreigner.
• Top business opportunities in Dubai for South Africans include tourism, e-commerce, real estate, digital marketing, logistics, and business consulting.

Process of South African business registration in the UAE

This is the step-by-step procedure to register a license for a South African business in the UAE.

• Choose business activity
• Decide legal jurisdiction
• Select corporate structure
• Reserve company and trade name
• Get initial approval
• Secure physical premises
• Prepare legal documents
• Acquire business license
• Open banking account
• Avail UAE residency

Now, we briefly look upon these steps of registering a license for your South African business in the UAE.

Choose business activity

Before you register your South African business in the UAE, you have to select a corporate activity. It will help you to define the scope of your corporate operations in the UAE. Also, you must have the knowledge of the due regulations applicable in your case.

Decide legal jurisdiction

Pick the suitable business jurisdiction from these options for your South African corporate relocation to the UAE.

• Mainland: Dubai mainland setup allows you to open business with full ownership in a busy market or a accessible city street. South Africans and other foreigners can sell goods and offer services anywhere in the UAE. However, business sectors like running a school or a taxi company, need local partners to share ownership in other Emirates.
• Free zone: Going for a UAE free zone is just like entering a park with minimal rules. With 100% ownership of your South African firm in a Dubai free zone, you pay little or no tax. Usually, the drawback is you have to trade inside the chosen UAE free zone, or have to ship products overseas. Nonetheless, the workaround is a partnership with another company in the mainland, for providing services or delivering goods there.
• Offshore: Think of the offshore jurisdiction model as a mailbox for global trade from the UAE. South African investors can run international deals, hold assets, and enjoy zero taxes. But, they just can not run an office or keep the staff inside the UAE.

Select corporate structure

Finalize a structure for your South African business in the UAE from sole proprietorship, LLC, or another suitable legal entity.

Reserve company and trade name

When shifting a South African business to the UAE, picking the right company name is very important. Moreover, your business name and trade name must follow the corporate naming rules of the UAE. While aligning with your brand, ensure you do not use words that are rude, disrespectful, or offensive to religion.

Get initial approval

Take preliminary approval with a no-objection certificate (NOC) from the concerning regulatory authority of the UAE.

• If, your business is in the mainland, you need approval from the Department of Economic Development (DED).
• In case, it is in a free zone, its authority will handle it.
• If, your business is in a special field like healthcare or finance, you need extra approvals from the overseeing bodies.

Secure physical premises

Find an appropriate space on rent/lease for office, outlet/showroom, or a warehouse (whatever is applicable).

Prepare legal documents

Complete the legal paperwork with all necessary documents to attach with the business license application.

• Business plan
• Copy of the passports of the owner(s)
• Photocopy of the UAE visa
• Trade name reservation certificate
• NOC from the DED or the free zone authority
• Memorandum of Association (MoA)
• Articles of Association (AoA), if applicable
• Lease/rent agreement with the tenant

Acquire business license

Apply for suitable business license for your South African company in the UAE, pay fee, and receive license after approval.

• Commercial license: For businesses that sell or trade things
• Professional license: For services like teaching, design, or consulting
• Industrial license: For producing goods to deliver to the customers

Open banking account

Register a business banking account in the UAE to carry out monetary transactions.

Avail UAE residency

Just in case, you do not already have the UAE residency. Obtain the residency status in the UAE with the investor or partner visa. Accordingly, it will enable you to legal run the business operations of your South African company in the UAE.

Conclusion

Relocating your South African business to the UAE is a smart move toward expanding into global markets. With simplified company registration, full ownership opportunities, and access to advanced infrastructure, the UAE offers smooth path for ambitious entrepreneurs. Whether, you’re starting fresh or expanding an existing company, the business setup process is sure to help you succeed.

By understanding the legal, cultural, and financial differences ahead of time, you can avoid common hurdles and focus on growth. With the right planning, and professional support, your business can reach new heights in the UAE’s promising corporate environment. It gives you the tools and confidence to build a stronger future for your South African company in the UAE.

Do you want to relocate your South African business to the UAE? It is the best time to expand your corporate operations internationally from Dubai or other Emirates. You can easily make this transition with the help of the expert consultants at KWS Middle East right now.

FAQs about South African corporate relocation to the UAE

These are the answers to the common questions about the South African business relocation to the UAE.

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