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Are you willing to start your own business in Dubai? Dubai is a favourable ecosystem for starting your new business. With inherent potential, architecture, environment that is very much suitable for your upcoming endeavour. But still, there are a few points that you need to pay heed to if you are planning to start your business in Dubai. This article will enlighten you on some pre-requisites before you venture your capital in one of the commercial capital of UAE.
What do you prepare beforehand?
- Identify the type of business. Venturing out the right business type is a very important task at the primitive stages. This involves deciding upon the type of business and the approximate amount of capital investment that will be required along with the license expense and employment visa.
- The nationality of partners helps in deciding exclusive industry types that aren’t allowed for foreign investors. Company formation in Dubai requires a UAE national sponsor or local partner or agent in any case under DED license for setup in the mainland.
- Business setup in Dubai can also be distinguished based on the shareholding structures opted for. The shareholding structures that you can opt for include Limited Liability Company, i.e., LLC company formation in Dubai, sole proprietorship, partnership in business, joint ventures, limited partnerships and much more.
Dubai has segregated business activities into different zones of business jurisdictions. Offshore, free zone and mainland establishments. Selecting the correct zone for the type of business that you have decided upon is important.
Dubai Economic Department has different zones of operation for setting up a business which includes:
Free zones: The country offers an exclusive region for foreign investment and 100% ownership for foreign nationals. Company formation in Dubai free zone is designed to allure and encourage more foreign investors in settling down for business in Dubai.
Mainland: The mainland just like free zone offers facilities for investors to set up restricted types of business in Dubai, which has to be approved by the Department of Economic Development and licenses are offered.
- Business has to be approved by the DED, a body for permitting, regulating, classifying and issuing a license for a business in Dubai. DED grants the preliminary consent for representing terms to start the business in Dubai.
- You are also required to set a memorandum of association (MOA) agreement that specifies the confines and authority of partnership in a concern.
What is a free zone?
Free zones are certain jurisdictions in Dubai that offer 100 sole proprietorships by foreign nationals. These zones of business are to attract the investment by other country nationals and come with some elite deals like easier set up of the company, effortless immigration procedures, and labour processing is simpler.
UAE has currently identified 45 free zones all over with 25 housed at Dubai. Registration for a company set up in Dubai is an extensive process, but it is essential to complete the procedure for a stress-free business start.
