In recent years, Dubai has started to show its economic stability to the international market.
Due to this Dubai has started to attract the eye of many business investors.
Current market trends in Dubai offer many import and export commodities like trade-free zones and they are constantly bringing new business investors.
Although the investor-friendly government has made a few steps to make the process of starting a business in Dubai easier, expertise and experience are required to start a company in UAE.
This means you need to be acquainted with various facts associated with the business startup in Dubai, which will allow you to avoid common problems most companies encounter while trying to launch an enterprise in the UAE.
1. Select a UAE national for your local sponsor
Although there are many business opportunities in Dubai, if you really want to start a business that will exploit the true potential of Dubai then you will need a locally registered LLC business.
A UAE national which is called “sponsor’ must be taken as a 51% partner. This local partner is provided the freedom to locate the business anywhere in the city. This is ideal for a business startup because it affords the best choices of locations to suit your budget. Every year a sponsor must be paid a yearly fee which can be negotiated. Also, it is advised that you develop a close and harmonious relationship with your sponsor so that he is ready to help you in solving any problems you may face along the way with authorities.
2. Select a Free Zone
If you don’t want to have a UAE acting as your partner and you wish to own your business 100% then select a Free Zone. Keep in mind that this is not practical for businesses like restaurants and retail stores that need to be in city markets and that purchase and rental in a Free Trade Zone can be hard for your budget to handle.
Nevertheless, for a business startup, Free Zones have to offer three great advantages:
- 100% ownership
- Speedy startup
- Duty-free custom boundary
3. Select an appropriate location
In order to optimize suitability, convenience, and costs it is crucial that you determine the most suitable location for your business. If your clients can’t reach you, setting your enterprise in the city won’t do you any good. So it is mandatory that you set your business in an area that is most profitable. The right location in the city can be selected based on an area that is best known for the product or service you are trying to provide.
4. Choose your company name
When starting a company in Dubai you should know that the UAE has a strict naming convention. Namely, before submitting your company name, make sure that it agrees with the rules. Any offensive language, names that refer to Allah or any religious group are strictly forbidden.
In order to save valuable time, consider hiring external assistance. There are several experienced business set-up experts in Dubai like Creation Business Consultants that can surely assist you. These consultants will not only guide you safely through the process but will also actually register the firm for you. They will also help you open your bank account, arrange for an auditor, offer you nominee services and do your renewals.
5. Confirm your visa eligibility and other requirements
For a successful business startup in Dubai, it is essential to have a visa that permits you and your employees to live in the UAE. Although visas are available for almost all businesses, their number varies according to a variety of criteria such as the nature of the business, the size of the office and the category of the employee or the investor. If you are trying to start a local company in Dubail then naturally you need to work with your local sponsors to get your visas.
Business visa application is not that strict as most people think and the bureaucracy is quite open to new investors. Apart from your passport and other legal requirements, your sponsor is required to write a letter containing your personal information and the reason for the visa application.
Starting up a business in Dubai might appear challenging. But in reality, all these policies and legalities make it easier for Startup firms to have the best benefits of the UAE market. Follow the rules, understand cultural boundaries and you will surely achieve business success.