UAE is famous for giving investors the most amazing opportunities for setting up businesses than anywhere around the word. Being densely populated with the international market, UAE’s jewel city ‘Dubai’ is always rich with economic activity and ideal for foreign investors to tap into imports and export of commodities, in and across the Gulf.
Among the many benefits of starting a business setup in Dubai, you get tax exemptions, good connectivity, solid infrastructure and talented workforce. You can start a business setup in Dubai within a week without breaking a sweat from your budget if you find the right business center to do your bidding.
Understanding expenses are crucial as lack of knowledge, in this case, can lead to undesirable overheads. To get your business presence in Dubai, here are six simple steps to start your own business setup from scratch in minimal cost.
First off, your need to find a local sponsor / UAE national. Although partnering with a local sponsor gives away 51% of the business share, it also waives off numerous other overburdening costs when establishing a business set up, while opening doors to several affordable locations in Dubai. Once you have identified a local sponsor, you will prepare a detailed agreement that mentions the responsibilities of the sponsor and the annual fee for the business setup.
To land a strong and lasting impression through your company, you must focus on creating a robust brand identity right after registering your Trade name through the economic development department. The Trade name should reflect your company goals and must be unique from the existing companies. Your primary expense during this stage will be a one-time cost which includes reservation fee or commercial name fees, foreign company name fees and a couple of others.
A Memorandum of Association is basically an agreement signed by all consisting shareholders during company incorporation. This contract is composed of the details that verify the type of business, capital investment, logistics, investor shares and various other clauses that are mutually agreed to run the company. The Department of Economic Development will notarize your signed memorandum of association. This must be signed within the dates and in front of the public notary for Dubai court.
Renting an office is easier and more cost effective for mainland companies. You can go for serviced offices which are affordable and equipped with all necessary facilities to carry out business operations in your flexible office space in Dubai. This is an annual or term cost.
When all your documentation has been fulfilled, its time to conclude this process and submit them to the Department of Economic Development and Commercial Registration Department along with the license fee.
After the final submission, you must now apply for a trade license which is an annual expense. There are three types of licenses depending on the trading activity is of your business. You can go for a professional license, commercial license or industrial license.
Starting a business setup in Dubai has never been discouraged. However, most foreign investors are either not very ‘well’ versed in UAE business rules and regulations, or face language barrier while conducting their business tasks. Finding the right business consulting agency in Dubai can help get through this process. It not only allows investors to overcome the lengthy paperwork and business approvals needed to initiate the set up, but most importantly it saves them set up costs and other expenses that can be later used for building a Brand identity.