Dubai never waits for things to happen, they make things happen. The ever growing city in the United Arab Emirates, Dubai has been witnessing numerous startups entering its borders. A city that welcomes innovations is always opened wide before anyone who wishes for a business setup in Dubai. Launching a new business or venture in Dubai is convenient as there are no tax return liabilities. When you are planning for a Business setup in Dubai, it is advised to follow certain tips that would benefit your startup.
Understand the internal zones
The entire business setup in Dubai is internally divided into three zones. These are Mainland, Free zone and Offshore divided on the basis of commercial actions of company, business requirements, company ownership status, taxation and feasibility. Knowledge about these zones is very important while planning for a business launch in Dubai.
Decide Business Activity
Even if Dubai is known as the commercial capital of UAE, there are certain business activities which are strictly prohibited within the boundary. Certain permissions are required before starting a business in Dubai. So, it is important to check if the business you are planning to set up fits in as per the rules of the city.
Select a local sponsor for your business
According to the regulations of Dubai, a UAE nationality is to be taken as a partner with 51% of the share and is called as the local sponsor. The challenge about this mandatory need is in finding a trustworthy and sincere partner. It is advised to get into an agreement with a silent partner which gives you the entire control of the business. This would also help you to avoid a conflict in later years.
Submissions of required Documentations
UAE is strict about the legalities and documentations. It is very necessary that you have a clear business plan, shareholder details and submit all the paper works including No Objection Certificates. It is important that you are punctual in submitting the documents that late submission of required documents might result in a heavy fine.
Know the Licensing Stage
After submitting the required documents, you will be notified about the licensing stage. Once your submissions and verifications of the documentations are done, the Government will issue the license to you. Business License is issued mainly based on the nature and jurisdiction of business activity. Some of the business licenses in Dubai include Commercial license, Industrial License and Professional license. In most of the cases, you receive the license within a week after the approval. It is very essential that you get the Business License in Dubai to initiate your venture.
Fix a name for your Company
To set up a business in Dubai, another important criteria to be taken care of, is the name you plan for your company. There are certain restrictions imposed by the Government about the names you give to your company. Names referring to Allah, names that include offensive language or any religious directions are strictly prohibited in Dubai. So it is important to double check when you fix a company name. There are several business consultants who can help you sort out the problems in fixing a name for your company. The finalised name should be registered in the Department of Economic Development(DED).
Rent a Business Premises
A physical office is mandatory for any business setup in Dubai. Along with the documentation you submit, those related to the rental details including tenancy agreement, Real Estate Regulation Authority documents and EJARI are to be submitted before the DED. It is very essential that you choose the best suitable location to start your business.
Meet the Visa Requirements
While planning for a Business setup in Dubai, it is necessary that you hold a visa that permits you and your employees to stay in Dubai. Visas are allowed for all business startups in Dubai but there would be a difference in numbers issued with regard to the size of the office, nature of business etc. Your sponsor will have to apply for your visa self addressing as the investor of your organization.
Connect with a Business Advisor
Contacting a Business advisor who could help you throughout your business set up would be a best option. They would guide you in every stage of implementing your business in Dubai. Along with helping you throughout your business plans, they would get your business registered legally. A team of business consultants would help you in executing your business plans from the first level.
Business Setup in Dubai might seem complex due to these multiple steps. But the fact to be understood is that all these strict policies enhance credibility and the benefits you could receive from the UAE market. Follow the rules imposed by the Government while planning for a Business setup in Dubai to explore various opportunities in the field of Business.
