The commercial capital of the UAE, Dubai, is one of the most popular business hotspots. Also known as “the city of gold”, Dubai provides incredible business opportunities with inventive commercial modules to assist entrepreneurs globally.
Moreover, the investor-friendly government and international exposure are two leading factors motivating entrepreneurs to consider a business setup in dubai. Especially, start-up companies get tax advantages and investment perks, unlike other countries, which is an added benefit.
Regardless of the amicable procedure of business setup, it is often difficult for new entities to understand the business setup process. To get started, here’s your primer:
- Decide a Business Activity: If you want to do your business in the UAE, understand your limitations. The UAE does not allow all types of business activities. Different consents are needed before starting a business. So, learn whether your business idea fits the standards of Dubai.
- Choose an Appropriate Jurisdiction: In Dubai, the business jurisdictions are zonally segregated to increase the competence and productivity of the business. There are mainland setups, free zones, and offshore establishments. You can opt for the appropriate jurisdiction depending on your business activity and its nature.
- Choose Shareholding Structures: The business setup in dubai depends on the shareholding structure. This distinguishes the business legal form. The structure, however, should be cohesive to business operations and its jurisdiction. Shareholding structures include sole proprietorships, public shareholding, Limited Liability Company, general partnership, private shareholding, shared partnership, joint venture, etc.
- Collaborate with a Reputed UAE National: If you want to conduct business in Dubai mainland, collaborating with a reputed UAE national is mandatory. It is often challenging to find a reliable and trustworthy business partner in the UAE. The local partner of UAE holds 51% of the share. If you choose a free zone, your business should have a local agent for service, who works for a fee.
- Register Trade name with the Department of Economic Development: You have to name the company according to the standards of the DED. Your trade name becomes the business identity, and therefore DED focuses on relating the name with the license. It would take three days for registration, with 6 months validity.
- Approvals: The business setup in Dubai you choose, should have the necessary approvals. Only a few businesses are not approved by the government, while some activities are restricted, and a few are prohibited. According to the DED of Dubai, Law 13/2011 can hold the DED accountable for deciding, regulating, classifying, permitting, and licensing economic activities. However, this does not apply to offshore and free zone businesses.
- External Approvals: DED only dispenses trade licenses to companies with investors. However, there are times when you would need external approval for setting up a business. Such permissions are generally obtained from non-government or semi-government bodies.
- DED Approval: Initially, the DED is responsible for approving when you submit all the necessary documents. This approval is also accreditation from Dubai authorities to start the business.
Depending on the details, it is understood that company registration in Dubai is an extensive process. Nonetheless, you can still appoint a business setup company for quick results.