The UAE launched a program for young entrepreneurs: a new approach to starting a business

The UAE has launched a new initiative for young business founders - the Young Entrepreneurs’ Business Setup Program, launched by Creative Zone, RAKEZ and the Mashreq NEO Biz digital bank. If you look at it more broadly, this is not just a separate program, but another step by the UAE towards systematically simplifying business startups. For several years now, a model has been consistently being built at the country level, where the number of barriers to entry is minimized, startup time is reduced, and ready-made tools are provided for the start.

In fact, the state and market partners are gradually moving from the classic approach, where the entrepreneur independently goes through all the stages - registration, bank, taxes, infrastructure - to a model where these processes are combined into a single ecosystem. And this program is just an example of such an approach.

Within the framework of this initiative, the entrepreneur is provided with a ready-made basic infrastructure for starting a business: company registration, opening a corporate account, tax registration, basic legal and HR solutions, a virtual office, as well as access to digital and logistics services. That is, key operational issues are closed even before the actual start of activities. The entrepreneur does not waste time searching for individual contractors, does not go through each stage separately and does not face the classic problem of “asynchronous” processes, when one solution depends on another.

This really simplifies the launch, especially for those who are just entering the UAE market or do not have experience working with the local system. Such programs show the general vector of the UAE’s development. The market becomes not only attractive from a tax or jurisdictional point of view, but also as convenient as possible from an entry point point of view. The less time and resources required for starting, the more entrepreneurs enter the market, test and launch new projects.

This is especially important for young founders, because it is at the start that most often there are delays: opening an account, approving the structure, filing taxes, technical issues. And while all this is being resolved, the business actually does not move. But there is a key limitation, with all the advantages it is important to understand that such programs are always a standardized solution.

They are tied to:

• a specific free zone
• a specific bank
• a predetermined structure
• a limited set of services

This means that the entrepreneur gets a comfortable start, but within the framework of a given model. And if the business goes beyond these limits or requires a more flexible approach, restrictions may arise. In practice, it looks like this: someone needs a different bank, someone wants to work with several accounts, someone needs a different jurisdiction or a more complex corporate structure. And in such cases, the standard package no longer covers all tasks.

What does it look like in practice? We regularly see that even at the stage of starting a business, clients have individual requests: different work models, international activities, complex cash flows, bank compliance requirements, tax optimization issues. And such tasks simply cannot be closed with a “one package”, even if it is well assembled.

That is why universal solutions work well as a basic option, but are not always suitable for those who want to immediately build a business systematically and with future scaling in mind. Such initiatives are a positive signal and an additional opportunity on the market. But they are not the only and even more so universal solution. And here it is important not to limit yourself to the framework of a specific program if your business requires a more flexible or individual approach.

The Antwort Law team works with starting a business in the UAE not within the framework of separate packages, but by building a full-fledged structure for the specific tasks of the client. We are not limited to specific free zones or banks and select solutions based on the business model, geography of activity and scaling plans.

This means that you can get:

• an individually selected jurisdiction
• work with different banks, not just one option
• a full-fledged tax and legal model
• a flexible corporate structure
• an operating system that really works for your business

That is, in fact, the same “ready-made start”, but without restrictions and with the ability to scale.

The UAE continues to actively develop the business environment and make it as accessible as possible. The launch of such programs is another step in this direction.

But it is important to understand the difference between a standard solution and an individual approach. If the basic model suits you, such programs can be a good start. If you want more flexibility, control and opportunities for growth, you should immediately build a structure for yourself.

The Antwort Law team will help you do it right: from choosing a jurisdiction to fully launching a business. Contact us for a consultation - we will choose a solution that really meets your needs and does not limit your development.

Diana Gulevskaya

Head of Office in UAE
Antwort Law