Dubai provides a vast business scenario with lots of opportunities and innovative commercial modules for enterprises across the globe. Investment-friendly government and exposure in business are the two key factors that motivate entrepreneurs to set up business in Dubai. But for a new entity, it is difficult to establish a business in Dubai as the procedure is a bit complicated to understand.
Points to Ponder upon when Eyeing on setting Business in Dubai!!
• Decide your business activity before Hands: If you are considering setting up a business in Dubai, then many things must be considered, as Dubai has business standards and limitations of its own. Not all business activities are allowed in Dubai. You need to fulfill various consents to set up a business, so the first and foremost thing is to decide whether the business you are eyeing on to set up in Dubai fits in its standard or not.
• Choose the Right Jurisdiction: There are several legal jurisdictions in the UAE like Onshore, Free Zone & Dedicated Free Zones, and businesses new to the region should make themselves aware early on which jurisdiction their business will be operating in. We strongly recommend seeking legal advice before setting up a business in the UAE. Arab Business Consultant can help you choose the best.
• Choose among the Shareholder Structure: Business set up in Dubai is induced by the shareholding structures that also help in distinguishing the legal business. Enlisted are some structure of shareholdings that you could opt for your business-
1. Joint ventures
2. Brand offices
3. Private and Public shareholding
4. Limited partnership
5. Representative Partnership
6. General Partnerships and so on…
• Find a reliable UAE National Partner: All the companies registered onshore in Dubai must have a degree of Emirati involvement, i.e. a Limited Liability Company (LLC) must have 51% of its shares locally held; a Foreign Branch can be 100% overseas owned but requires a UAE National Service Agent. While a company registered in one of the UAE’s many Free Zones can be 100% foreign-owned. There are many such unknown forethoughts that you might not be aware of. A local business setup company like us can save all your time and money.
• Business Activity Approval: In Dubai, several commercial activities are restricted, whereas few business activities have a complete ban, prohibited. The Department of Economic Development in Dubai has the authority to make potential changes like it can regulate, permit, decide, and classify the norms by themselves.
“What do you need to start a business? Three simple things: know your product better than anyone, know your customer, and have a burning desire to succeed.” –Dave Thomas, Founder, Wendy’s
Need to follow Registration and Business License Procedures:
Business licenses are based on the nature of the business. After the procedure of registration is done, the process of licensing starts, although it runs parallel. The most prominent business setup in Dubai are-
1. Commercial Licensing
2. Professional Licensing
3. Industrial Licensing
The above mentioned are important details that help you understand the business setup process in Dubai. There are many other important aspects such as drafting LSA for business, initial approval from DED, renting premises, collecting licenses, etc. that you have to take into account for setting up a business in Dubai. Contact us to know and understand the complete process.