A Guide for Setting Up Your Own Business in Dubai
Dubai is the center of global trade, a meeting point for the East and West where trade is the beating heart of the economy. As such, Dubai never sleeps and is always alive with trade and the everlasting prospects of enormous profits. Establishing your own business center in Dubai is a lucrative idea guaranteed to spin revenue, however, there are certain prerequisites which need to be analyzed before the venture can be finalized.
Since Dubai places trade and commerce among its top priorities to bring foreign investment, their laws and regulations are among the most business savvy around to the world that facilitates commerce in their region. The following 5 guidelines will aid you in deciding how to start your own company in Dubai.
- Research Local Rules and Regulations
Having comprehensive understanding regarding the rules and regulations of your domain is vital for calculating costs, hiring local resources and planning for future prospects. Dubai is bustling with business opportunities, which elevates it to the status of prime estates for establishing companies. If you aim to start an inter-city business, then a local partner is required who will own 51 percent of the business. Otherwise, a Free Trade Zone business can be chosen to avoid sharing with a partner.
- Hiring your Business Registration Agent
Instead of undertaking the daunting task of establishing everything from scratch by yourself, it is suitable to hire the services of a UAE business registration firm to take care of the process. Since the firms are veterans at what they do and have experience, contacts, and resources which would otherwise be difficult to procure, it is an advisable option to hire their services. Even though their service charges might set you back a bit, they are prepared to undertake the tasks of filling and getting documentation processed, analyzing and fulfilling prerequisites, handling legal constraints, providing flexible office space in Dubai and all such tasks to complete your business setup.
- Searching for a Sponsor
When establishing your business in Dubai, a local UAE national is necessary who will own 51 percent of the business from the legal point of view. There are 3 different kinds of sponsors and the fees they charge for their services changes accordingly:
- Sponsors who will charge low fees (US$ 3,500+) for having their credentials on legal papers. They will not involve themselves any further.
- Sponsors who will charge medium fees (US$ 14,000+) and in return will aid you in managing your business as well as handling legal issues with the government.
- Sponsors who will charge high fees (US$ 300,000+) and are high ranking government officials or influential figures in the society. They hold power and connections which are extremely beneficial for your business and can wield their reputation to your advantage.
- Choosing the Business License
There are different licenses under which you can register your business and their conditions differ. The activities you choose to conduct the along with the business decide which license should be chosen. Local businesses require a UAE national to own at least 51 percent of the business legally whereas a professional licensed company can allow you to retain 100 percent ownership by registering you as a “Service Agent” with the UAE national. The company can also be registered in any of the 26 Free Zones in UAE, but keep in mind they require significant investment so are not suitable options for startups and small businesses.
- Calculate the Costs
This might seem like the most basic of steps, but in reality, is mostly skipped because of the common concept that lesser taxation in Dubai means your budget will last longer. On the contrary, starting your own business center in Dubai is an expensive venture and without a detailed plan, your budget will run dry in a short amount of time. Hiring an agent to plan out your capital is a smart move towards securing your objectives within the limits of your funds. These agents are seasoned professionals in who can help you secure a serviced office Dubai, local and foreign resources and legal paperwork to make set you a self-sustaining business center in Dubai
Establishing your own business is a daunting task without the proper guidelines. By referring to these 5 basic steps, you can be sure your company will have the planning for solid foundations and be ready for challenges in the future.