Introduction
Dubai, a global center of business and innovation, presents an abundance of opportunities for entrepreneurs. The electronics sector, in particular, has shown major growth, driven by higher consumer demand and technological advancements.Â
In this blog, you will get to know about the process of how to start your electronics company in Dubai, the necessary documents, and the advantages that you will get.
Important steps for starting Electronics Company setup in Dubai
The process to start your electronics company in Dubai is as follows:
Choose the correct legal form for your business
You can operate your business as a Sole Establishment, where the foreign citizen can be the full owner of the business and the UAE citizen can be the regional agent.Â
Another option for starting your electronics company in Dubai as a Civil Company where there can be more than 2 overseas resident partners and the UAE resident can be the regional partner.
The third option is that you operate your business as a Limited Liability Company where the UAE citizen has 51% of the equity and the migrant has 49% equity.Â
Register the trade name
A trade name differentiates one business from another. It also shows the nature and the form of the business.Â
You should prepare at least 3 to 4 names that you would wish to have as your legal name and present it to the relevant department.Â
Once you have shown your request, the department will analyze it and sanction all the eligible business names. Therefore, you have the liberation to choose the one that you like most.
Here are some guidelines you must follow while forming a trade name.
The trade name must:
- Should not violate the public morals or the public rules of the country
- Your business should be compatible with the required type of activity and the legal status of the company or business entity
- Your business name should not hold names of any religion or governing authority, nor names or logos of any external bodies
- Your chosen business name should not have been previously registered.
- Your business name should not incorporate names starting with words like “Universal”, “Middle East” ” or “International” and/or translate them into Arabic.
Get initial approval
Initial approval is the first step of approval granted by the UAE Government to accept a foreign investor to proceed with setting up a business in the country.
It shows that the government has no objection to the formation of the business, but it does not provide the business owner the authority to start or practice the business activity.Â
Drafting a Memorandum of Association (MOA) / Local Service Agent Agreement (LSA) for Electronics Business setup in Dubai
A Memorandum of Association (MOA) is seen as the constitution of the business organization and is a necessary document for forming your electronics company in Dubai.
It will have the details of the shareholders, board of members, regulations related to the operation of the company, policies, safety and security aspects, and so on. MOA has to be submitted along with other crucial documents for your business formation in the UAE.
Kindly note that certain businesses owned completely by non-GCC residents need a Local Service Agent from the UAE. Designating the local service agent will be under an agreement attested by the notary public or the court.
Get add-on government approvals
According to the specific type of your business you may need to get additional government approvals as well.Â
It is good to have an experienced consultant by your side at this stage as Arab Business Consultant. We will assist you in getting all the government approvals required for your business.
Apply for a Business License
Once you have done all the above steps further it’s time to apply for your electronics company in Dubai business license. The type of business license you will apply for is based on the primary activity of your business.
Once you have the business license, you can go on to practice business activities legally in Dubai.
You can collect the business license from service centers of the economic departments or through their websites.
Significant Documents for Getting Your Electronics Trading License
To start an electronics company in Dubai you would need various vital documents as follows:
- A list of selected company names for name reservation.
- Your passport with any previous tourist, residential visa, or entry stamps from UAE airports.
- A No Objection Certificate (NOC) from your present sponsor if you have an existing resident visa.
- Your license application form.
- Memorandum of Association (MOA)
- Your tenancy contract is for either a physical office or a virtual office.
These documents show just a portion of the requirements, as there are many others decided by your business’s jurisdiction, size, and numerous other influencing factors. It’s crucial to note that you will also be required to furnish the visa and passport details of partners, involving dependent resident visas.
Going through these complex steps with high chances of errors is challenging. You can blindly rely on us – Arab Business Consultant and on our expert team for your electronic Company in Dubai Setup and also for managing the process for you. We can effectively help you get your electronics company in Dubai trading license that saves your precious time and effort.
Benefits of establishing an Electronics Trading company in Dubai
Opening an electronic Company in Dubai comes with many benefits as follows:
- Trade benefit: Enjoy the advantages of tax exemptions and a wide variety of Freezones, offering the potential for both local and international trade success.
- Custom Benefits: Dubai customs gives numerous advantages such as lower shipment and customs charges, quick clearance times, and prevents demurrage and storage costs.
- Port Benefits: Dubai’s ports give affordable and efficient international trade with lower duties and universal access.
- Import-Export Policies: Dubai’s business-friendly policies are beneficial for starting an electronics company in Dubai.
- Taxation: Tax prevention, especially in Freezones, creates an ideal environment for building businesses.
Additional Custom Benefits
Dubai customs offers a lot of other advantages to this electronic Company in Dubai. Some of the most visible benefits include:
- Fewer shipment charges
- Fewer custom charges
- Quicker clearance time if compared to other countries
- Clearance Approval is also fast-paced in comparison to other countries and regions
- Penalty charges and storage costs are significantly lower than those of other countries and regions
Port Benefits
Dubai’s ports permit electronics company in Dubai to have simple and affordable international access. Being a global economic center, Dubai’s port allows businesses to receive and send shipments throughout the globe with effortless access and low duty if compared to other ports around the globe.
Import Export policies
Basic and convenient import-export policies make Dubai the ideal place for starting your electronics Company in Dubai.
Taxation
As we have earlier discussed, there is a lot of prevention from taxation for businesses, especially in Freezones. It forms an ideal business environment for start-ups to grow and flourish.
ConclusionÂ
Starting an electronics company in Dubai requires careful planning, market research, and compliance with local regulations. By following these steps and implementing effective strategies, you can form a successful electronics business in one of the world’s most lively and lucrative markets. With the right approach, your electronics business can flourish and grow, contributing to Dubai’s vibrant commercial landscape with the right business partner like us Arab Business Consultant.
