In no doubt starting a business is always encouraged in Dubai. Dubai attract the eyes of many business investors as it showed up its stability in the international market too. So setting up a business in Dubai is a good idea but for that you need to know the following basic steps so that you have a great start ahead with your new business.
To setup the business in Dubai you have to follow these basic steps listed in this article as you read through.
Type of Business and Ownership:
The type of licence you require depend on the type of business you want to open. The licence can be commercial, professional or industrial as per your requirements. But do remember food trading, jewellery trading etc require approval from different government departments too.
The Department of Economic Development (DED) have many activities listed from where you can choose or contact DED. Each free zones have their own rules for approval.
Whereas if you want 100% ownership for your business then you need to opt for a location and a licence in one of the free zone area you like to setup business in Dubai.
To operate locally you need to to get local licence from your DED which have certain restriction on foreigners.
Legal Form and Trade Name :
Depending on your location and type of business you need to follow some rules to make-up your firm. Each free zone has their own regulations and restrictions regarding company structure which you can have a look at in the official website of DED.
Whereas Trade name is equally important for a business to setup in UAE.The trade name should indicate toward the nature of the business until and unless it is a branch of another company.
Share Capitals and Premises:
Minimum amount of share capital is generally mentioned in the MoA (Memorandum of Association).But there are many cases in which minimum share capital is not mentioned. If that case happen with you then you need not to pay during set-up.
Once you are done with all the legal procedure then its better time to search for offices and take the details of them. In free zones you will even get assistance to find a good premises with all your requirements.
Sometimes you need to hire a manager who see all the operations. You have to have him ready before the approval is completed. But there are many cases where you are not at all allowed to hire anyone. The free zones have their different rules and regulation for different areas and one need to follow them accordingly.
Local Support :
For the DED licence, one need to have local agent, partner or sponsor. This is a great help too for your organisation to set up. For the free zone area, having a local support help you to take your business forward easily.
Since Dubai is a business destination, sometimes it is not necessary to have a agent as support to boost up your business.
Some Don’ts in Dubai Business Startup
1. Don’t register your company in the freezone without the knowledge of the available workspace and preconditions
Every business startup tends to look for the most cost-effective place for their employees generally most of the co-working spaces in dubai offers various prices depending upon your budget so it is really important to get settled with the office workplace first.
2. Do not make firm plans depending upon the published information
The published information in the free zones tend to change quite often according to the new norms and policies so it is important get a complete knowledge of all the norms and policies before commencing the operations of the business, you may discover that some special documents are needed depending upon your nationality.
3. Don’t open a bank account without being aware of the bank charges.
You should not choose to open an account in a bank based only upon the reputation only so it is very important that you get an in-depth knowledge of all the various bank charges that you may incur.
4. Do not sign a sponsorship with the local sponsor without a written agreement.
The local sponsor may charge you separately for some other charges so it is important for you to take a note of all the services that your local sponsor is going to offer without any additional payment, you shouldn’t rely only on verbal understanding.
5. Do not select a license category blindly.
Your focus should be on choosing a broader license category you shouldn’t choose something which will narrow down the operations of your business so you should make sure that your license allows you to do all the activities that you are planning.
So what are you waiting for? Now you have idea about how to set-up business in Dubai. So go and hit up and set your business and let yourself shine like a diamond.