- On 22nd November 2016
Starting a business in the UAE is very easy and you can setup your business right away. The economic environment is very friendly to start a business in Dubai and rest of the U.A.E. The economic policies are pro-investment and pro-business.
Here are some reasons that make Dubai the perfect place to start your next business venture:
- Growing Economy
The U.A.E’s economy is constantly growing and it is very dynamic. The growing economy attracts the investors from all over the world to park their money and make profits on their investments.
- Legal Structure
The legal structure is business friendly and all the legal procedures to setup a business are straight forward. This enables the swift procedure for company formation in Dubai.
Dubai has one of the world’s best known infrastructures. The government bodies and free zones provide modern and business friendly infrastructure with all the facilities required to run a successful business.
More than 200 nationalities are there in U.A.E and doing jobs and businesses. This huge diversity of manpower can take your business to the next level with their talent and abilities.
- Government Support and Law
The government and Law in U.A.E are pro-investment and pro-business and provide extensive pre and post-support to the business owners in legal and other procedures.
Starting Business in Dubai
Before starting the legal process of business setup, you need to understand these requirements
- Type of Business
The type of business that you select will determine the kind of license you require. It may be commercial, professional or industrial licenses; it will define the basis of your business operations. However further approval may be required from government departments for activities like food trading, jewelry trade, veterinary activities and legal consultancy.
There are basically two types of business ownerships in UAE. People prefer to have the 100% ownership of the business and for that they need to setup their business in any of the free zones in Dubai. Each free zone deals with the set of activities and first step will be helpful for choosing the business activity.
If you want a local license or want to operate locally, you will have to get a license from the Department of Economic Development (DED). The DED license comes with certain restrictions on share of ownership for foreigners.
- Legal form
Each business activity has some legal guidance and restrictions in United Arab Emirates. For example if you want to operate a legal consultancy firm then it has to be a stand-alone company or branch of a company. This activity cannot be run by a sole proprietor. Similarly each free zone has its own legal restrictions regarding the company structure. All this information is available on the website of the respective free zone.
- Trade Name
You need to have a trade name as your trade name is a very important part of the legal procedure. The company name should ideally indicate the nature of business, unless it is a branch of another company.
- Share capital
Minimum share capital is usually required in the Memorandum of Association of your proposed company. In most cases, you do not need to pay minimum capital at the time of setting up.
Once you have decided the trade name and legal form, it would be best to shortlist some offices with costs and other details. In free zones, you will get assistance from the free zone representatives to find premises suitable to your requirement along with help to set up electricity, internet, water and other amenities.
In most legal forms of the DED, you are required to hire a manager to manage operations and have him ready to be on board before your registration is approved. But in some cases, you may not be allowed to hire at all. For example, Intelaq license holders (license for home-based Emirati business owners) are not allowed to hire staff, but can engage contractors. Details of staff requirement can be seen on the websites of the respective free zones.
- Local support
For DED licenses, it is mandatory to have a local agent, partner or sponsor and this is a great support for foreign nationals. For free zones, having a local contact can help take the business forward effectively. However, this is not mandatory and Dubai as a business destination boasts easy set-up for all businessmen regardless of nationality.
Once all of the above steps are completed, then you are ready to setup your business in Dubai.
How Farahat & Co. Helps you to Setup Business in Dubai
Farahat & Co. established in 1985, is the top consultant firm for business setup in Dubai, Sharjah, Abu Dhabi, Ajman, Ras Al Khaimah, Fujairah and Al Ain. Our expert consultants help you throughout the process of company formation and provide comprehensive business solutions.
If you are ready to setup your business in U.A.E, then Live Chat with us on our website or get in touch with us here.