Essential Steps to Take While Setting Up a Business in Dubai
Starting a business in Dubai is simple and easy if you know all the procedures and the rules and regulations. It usually takes about a week, around eight days and six procedures on average, once you have ordered all your legal formalities.
But before you start the formalities, you need to consider some factors you will need in the process:
Type of Business
What is your business type you will have to determine first, based on which you will get your license? Whether your license is commercial, professional, or industrial will define the foundation of your business operations. However, while choosing your business types and business activity, do keep in mind that certain activities like jewelry trade, food trade, legal consultancy, and veterinary activities need further consents from other governmental bodies.
You can choose from the list of 2100 activities that the Department of Economic Development (DED) in Dubai has. If you are unable to find your specific one in there, you can contact the DED. Each free zone has its own regulations and approval formalities.
Company Ownership
As a foreign national, if you want 100% ownership of your company, your license and location must be in one of the free zones in the UAE. Every free zone in UAE is dedicated to a specific kind of activity that each free zone caters to, and clearness, in the beginning, will help you make the right choice. UAE has over 45 free zones catering to various business categories. Thus, you have enough options to choose from.
If you need a local license or want to operate in the local market, you will require it from the Department of Economic Development (DED). The DED license is available with some restrictions on the share of ownership for foreigners, based on different legal structures under DED.
Legal structure
The legal structure of your business depends on your location and type of business. For example, if you are a legal consultant and planning to open an office, you can open only a company branch or as a stand-alone company. A sole proprietor is not permitted for this activity. Every free zone in the UAE has its own restrictions related to companies legal structure, and you can check this information on the official website of the individual zones.
Trade Name
Your trade name is a crucial part of the company formation legal procedure. The nature of business should be identified from the company name unless it is a branch of another company. One can find all the rules of trade names on the DED official website.
Share Capital
Investors usually set up minimum share capital in the Memorandum of Association of their proposed company. Generally, one does not require to pay minimum capital at the initial stage of company formation.
Office Spaces for Business Setup
After all your legal procedures and forms are ready, you should shortlist some office spaces based on your budget and business needs. So that once your legal formalities are cleared, you can immediately move further and start operating. If it is free zones, you will get office spaces with all types of assistance, suitable to your business need along with electricity, internet, water, and other amenities.
Office Staff and Employees
Usually, in most DED legal forms, hiring a manager to oversee operations is necessary. It has to be done before your registration is approved. However, in other cases, one can only engage contract staff, as hiring is not allowed. In free zones, every zone has its specific regulations regarding hiring and business structure. Take to your legal advisor or business setup consultant in Dubai (UAE) for further information.
Local Support
If you seek DED licenses, you will have to hire a local agent, partner, or sponsor. If you have free zones license, a local contact can help operate your business efficiently. However, in the case of free zones, it is not mandatory.
In short, Dubai as a business hub possesses an easy, effective and impressive business setup for all types of businesses, regardless of nationality.
