For entrepreneurs, business setup in Dubai, UAE can seem complicated and overwhelming at first. There’s a set of steps to follow for you to finally start a business and quit the nine-to-five. To keep everything simple and straightforward, we’ve made a guide on business setup in Dubai, UAE so you get to be the boss and able to set your very own schedule and develop or grow your unique idea. Let’s start!
Step 1: Create a solid business idea.
It does not matter whether you are in Dubai or anywhere in UAE or even across the globe. A successful business always begins with a solid idea. Watch current trends, study your skills, and search for ways in improving upon some existing concepts or provide something new onto an existing market. Test your idea before you even invest some serious money and time into it.
Step 2: Make a business plan.
The best way in testing your idea would be to turn it into a complete business plan. It will let you examine everything thoroughly, most especially the products, the market, and the industry you will be operating in. It’s also going to provide you with something to show to lenders and investors – the best testing ground for business ideas.
Before you launch the business, make sure you already have a thorough and complete business plan guiding you.
Read also: Tips on Taking Your Business in UAE Online
Step 3: Select a winning business name.
Choosing a good business name will come with both marketing and legal considerations. For the United Arab Emirates, the local government authorities place more name restrictions for corporations in comparison to sole proprietorships; however, all entrepreneurs should take into consideration the legal issues when giving businesses a name. Take note: all businesses are to secure the approval of the Dept. of Economic Development UAE for trade name registration.
In terms of marketing, the business name has to communicate exactly what the business offers or does while remaining memorable, positive, and interesting.
Step 4: Select a business structure.
With business setup in Dubai, UAE, entrepreneurs have a lot of options for the legal structure of their businesses. This includes limited liability company or LLC, partnership, and sole proprietorship. Deciding which structure would fit the business you intend on establishing will depend on a couple of factors, including your comfort level with the liability you take on and your other partners or shareholders, if applicable.
Step 5: Look for small business financing.
While there are entrepreneurs that finance their small businesses from their savings, a lot of people require an infusion of funds that are from angel investors and banking institutions. If you want to get your project off the ground quickly, this is worth considering. There are also a lot of options from government grants and debt financing to giving equity. Understand the differences, pros, and cons for each type of financing. In addition, be sure that you are prepared in dealing with the obligations for whichever type you choose.
Step 6: Secure government approvals.
In UAE, all businesses require business licenses. Those who have not secured the necessary government approvals won’t be allowed in operating within UAE legally. If you want to ensure that you skip the red tape, then it will be worth your time to consult with business setup specialists in Dubai, UAE.
Depending on what type of business you are starting, you’ll also need other permits from several different regulatory bodies.
Step 7: Undergo VAT registration.
In most cases, the gross income of small businesses stays under AED 187,500 for at least two consecutive quarters. If your taxable supplies are expected to go beyond AED 187,500 for the following month, you can start undergoing the process of VAT registration. If your taxable supplies are projected to be over AED 375,000 even in the first quarter of starting a business, then you are required in registering for VAT. Take note: there’s no other person that is required in accounting VAT dues in UAE but yourself or your business.
Even if you are not making a lot of money to start, there’s a reason why a lot of businesses choose to register for VAT voluntarily. This is because of the ability to get back the Value Added Tax your business paid on expenditures for business use.
Step 8: Prepare to have staff members.
When you are starting a business in UAE, you will need to sponsor employees and process their residency permits. It is best to hire business setup experts in UAE to help you prepare the paperwork and process the residency permits needed so you are legally covered in hiring employees. Service providers of business setup in UAE can also help you handle WPS setup and maintenance and company payroll.