bryanchaaban
Hi,
I am a Canadian looking to setup a new bsuiness in the UAE. I have been in touch with a few UAE Nationals that has offerred to be my sponsor for a yearly fee. They tell me that they will not take any shares of the company and that I would have complete control of the business.
Can this be true? Can't he show up after a period of time and take half the business?
I'd really like to get some info on this issue.
Thanks,
Bryan
MaaaD
Bryan some people will do that .. however you now have the option of setting up your business in a freezone and have 100% ownership. What type of business are you into ?
bryanchaaban
I am a hardwood lumber inspector by profession and I have spent the last 12 years exporting various Forest Products & Pulp and Paper mainly to the Middle East.
I have looked into setting up in one of the Free Zones, but I thought it would be better for business to have something withinn one of the Emirates. I was thinking of renting a small warehouse and stocking some timber and other building materials.
What do you think?
bonk
- bryanchaaban wrote:
I was thinking of renting a small warehouse and stocking some timber and other building materials.
Not so easy in Dubai Internet City. Maybe Jebel Ali Free Zone but then you have costs associated with exporting products out of there to Dubai. And logistical difficulties if you expect retail customers to come to you. What's your target market?
bryanchaaban
You are right about the extra costs of exporting the goods out of the freezone into Dubai proper. And don't forget about the high rent costs in the freezones.
This is why I was thinking more of forming a company in Dubai, Sharjah or Ajman. I could rent some small warehouse outsied the city at much lower prices.
I am starting out small, so I am mainly targeting interior decoration companies, smaller contruction companies, small furniture factories, etc..
bonk
- bryanchaaban wrote:
Can this be true? Can't he show up after a period of time and take half the business?
I think contracts can be drawn up that set out the terms of your partnership clearly but I'm not a lawyer. The Lynx Group are business start up consultants that might be worth trying - I know the name only because I heard them on the radio today.