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If any business deserves to be called the lifeblood of a nation, it is the construction business. The UAE, with its rapid rate of development, is certainly no exception, and it is the best place to open up a contracting business.
A contracting company, also known as a construction organization, provides stipulated amounts of materials, goods, personnel and other elements to the project owner within a specified time frame and mutually agreed cost. The project owner is the name behind the actual project.
So, how does one start a contracting business in the UAE? For most people, free zones are the way to go. Besides not having the requirement of having a local partner with a 51% share in the business, free zones also provide a complete tax-free business environment.
The first step is to decide on a company name and apply for registration at the Department of Economic Development (DED) of the emirate concerned. Next, a memorandum of association will be prepared by a lawyer and notarized at DED. Then the company can obtain a trade license and register for membership at the Chamber of Commerce where the business will be based.
A trip to the Ministry of Labor is also important to obtain an establishment card. If employing UAE nationals, they must be registered with both the Ministry of Labor and the General Authority for Pension and Social Security. The contracting company can then begin operations.
A business setup firm is usually the best place to go to aid you in the oftentimes complicated process.
• Register your company name at your emirate’s DED
• DED offers online processing for hassle-free affair
• A free zone area negates the need for a sponsor
Source: Bushra Hameduddin, Special to Classifieds
The writer is a freelancer