Dubai is the fastest growing cities and has emerged as one of the top business destinations in the world. It has attracted all the investors from regional to international companies who are planning to set up a business in Dubai. Being the secure place, Dubai is one of the safest places to start a business. One of the fascinating things that tempt the entrepreneurs to start their business in Dubai is the low tax system. Not only this, Dubai has attracted the reputed international companies also such as the companies from US, US and Europe to establish their offices in Dubai.
It is a beneficial place for both the Dubaites and outsiders to start their business but can be a little bit confusing for the outsiders. In this article lots of options are given that you need to know before setting up a business in Dubai, we have provided a list of how to navigate with these options.
1.Choose a proper plan and activity:
The first and the important step is having a good plan and choosing the right activity from the over 2000 business activities available in Dubai, the one that fit your needs. The prerequisite that you will require before starting a business in Dubai is a “trade license”. Choosing the right business activity from the start of your business is very important, you cannot switch to some other kind of business in the middle of the activity.
E.g. If you are importing gold you cannot suddenly switch to import shoes.
Then you can select a trade name for your business online on DED website or through the local law firm.
2.Select the right type of company:
Before choosing the right company for your business, you need to know about your business model. Your business model and business activity will decide which company to choose. Normally there are three legal forms or company structures companies that you will be asked to choose from.
The three options each with different ownership rules and regulations are:
- LLC (limited liability company):
LLC is well suited for the companies with a single owner and provides limited liability to its owners in many jurisdictions. If you deal with supplying goods and services to the local markets in Dubai then you must opt for local LLC.
- Free zone company:
If you require full require full ownership then you must set up your business in Dubai Free Zone Company. The benefit of setting up your business in Dubai free zone is that 100% foreign ownership is granted to a single share-holder as well as a director.
- Offshore company:
If you want to operate your business outside the boundaries of UAE and want it to be only as a base of your business then opt for the offshore company. E.g., a business in the Uk opens up a similar enterprise in UAE.
3. Select the right free zone:
There are lots of free zones available for you,but you need to decide which free zone you need to choose for you. In order to understand which free zone is best for you, there are three important questions you need to ask yourself.
• Will you do business inside the UAE?
• What is the activity you will be doing?
• What type of UAE “presence” do you need for you and your business?
4. Choose the right bank:
There are numerous good banks available in Dubai providing the excellent service to its investors. There are lots of banks in UAE that offer conventional and sharia complaint financial services.Depending on your business needs you can select the particular type of bank for your business.
5. Get the initial approval certificate:
You need to get a formal approval from Dubai government on a document via online DED online or offline center, mentioning that Dubai government has granted you the permission of starting a business in Dubai and also that you can now take the next step to getting a business license.
6. Select the location carefully for your business:
Another important step is selecting the location for your business. Depending upon the nature of your business you can select the physical address for your business. Choose your location carefully.E.g.Dubai is easily accessible by car but what if you have Staff that needs to come with public transport that time you need to select the location close to the metro.Moreover, there are options available where you may or may not require the approval from the Dubai municipality planning section.
In some cases Dubai municipality planning section has to first confirm the property’s availability, suitability and compliance requirements but you may also choose to locate your business in an authorized business center where there is no need to get the approvals from the section.
7. Sign a memorandum of association(MOA):
You need MOA (a kind of official document) and will require the services of law firms, DEA to draft it. According to selected legal form, you and your business partners may need to sign MOA. If you want to operate your business outside of the free zone then you will need to sign LSA (local service agency) with a UAE national.
8. Get the approval for your license:
Depending on your business different government departments will approve your licenses for starting your business in Dubai. You may require the approvals from different government authorities.
E.g. If you plan to set up a hospital in Dubai, you may have to ask for approvals from DED as well as from Dubai health authority.
9. Get your business license:
After following all the above steps, you need to submit all the documents to DED then they will handle the entire process.You are all done now you just need to done one thing i.e. seeing your business flourishing in a great pace.