- August 3, 2016
- Posted by: aon
- Category: Blog
Establishing a Business in Dubai- 4 Things that you Should Know
Dubai is a major center of trade and commerce. It is also known as the business capital of the Middle East. Its strategic location between Europe, Asia and Africa, a liberal economy, high standard of living and world class health and education system are some of the main factors that make Dubai an attractive destination for businesses. With its rapid growth, Dubai has established itself as one of the leading commercial centers in the world.
Over the past two decades, the government has taken several initiatives to make Dubai a more business-friendly city. Business start-ups get all the support in Dubai. Although the entire process of Dubai company registry and company formation is uncomplicated and hassle-free, one needs to have a proper knowledge and understanding of how things work in Dubai.
When it comes to establishing a business successfully in Dubai, here are some important things that you should know-
1. A Local Sponsor
If you want to start a business in Dubai, you need a local sponsor who holds a minimum of 51% shares in your company. A local sponsor provides you the freedom to locate your business anywhere in the city. Your sponsor can be an individual or a local company. The individual should be a UAE citizen. Having a local partner is a mandatory requirement when it comes to setting up a business in Dubai.
2. Choose a Free Zone for Complete Ownership
If you want to register a company in Dubai without a local partner, you can choose to locate a business in a free zone. A free zone is a special economic zone set up to offer tax benefits and other incentives to foreign businesses. There are over 20 free zones in Dubai. You can establish a business in Dubai without having a local company or individual as your sponsor. In a free zone, you’ll have 100% ownership of your business. Some of the other advantages of establishing a business in a free zone include 100% tax exemption, access to multi-currency bank accounts, warehouse facilities, and liberal policies for bank account transactions.
3. The Right Location
Selecting the right location for your business is of great importance. It is important to note that free zones are located at some distance from the city. So, if your business needs to be near the city, setting up a company in a free zone may not be a good idea as it will make it difficult for your clients and customers to reach you. However, Dubai free zones have special tax and import policies that make them beneficial for businesses. Depending on the nature of your business and the type of products you’re dealing in, you should choose a location that is most profitable for your business.
4. Business Consultancies in Dubai
The process to register a company in Dubai is hassle-free. However, there are legal obligations that many new businesses are not aware of. This is where the services offered by a reliable business consultancy can prove to be very useful. Right from making strategic recommendations to providing legal assistance, business consultancies offer a wide range of services that make it easier for you to register a company in Dubai. These consultancies also hold expertise in handling local bureaucracy.
Dubai is one of the best places to do business. In recent years, a lot of diversification has taken place as far as Dubai’s economy is concerned. Many opportunities exist for all types of businesses in Dubai. Hiring a business registration company will make the task of setting up a business in Dubai easier for you.