How to start business in Dubai
With a global standing, Dubai is renowned as one of the most entrepreneurial friendly nations to establish a new or expand an existing business. Over the years, the Emirate nation has proven its economic stability and has lured more than ten thousand foreign entities to invest in the trade and commerce sectors of the country.
The current market trends in Dubai offer an array of opportunities to the foreign entities in practically all sectors of economy including real estate, trading, F&B, hospitality, healthcare, financial service, etc. The growing tourist traffic of the city has widened the scope of business activities and gain high international profits.
Dubai’s economic system offers the following benefits:-
- Highly developed infrastructure and transportation system.
- Excellent telecommunications facilities.
- Free enterprise system across the land.
- Hosts top international exhibitions and conferences.
- Top Notch residential accommodations and commercial structures.
- Cheap workforce and relatively easy recruitment procedures
With a host of economic advantages, opening a business in Dubai is one of the most lucrative options that can be availed by businesses all across the world. Opening a business in Dubai aids following benefits:-
- No personal income and corporate taxes
- 100% repatriation of profits and capital
- No restrictions on currency type
- Highly competitive import duties
- Efficient communication system
- Simple staff recruitment procedures
- Competitive freight charges
- inexpensive and abundant energy supply
- Relatively competitive real estate prices.
- Easy access to both air and seaports.
For foreign companies willing to start a business in Dubai, the city has five major options to explore under the UAE law.
- Creating a permanent establishment (seven different types of entities can be formed)
- Enter into an agreement with commercial agencies
- Setting up a branch office
- Establishing an entity in a UAE free zone
- Starting a civil company only in Dubai & Sharjah
Opening a company in Dubai can raise your overall business turnover, but there are certain dos and don’ts which you must be aware of before starting a company here.
Do’s of starting a business in Dubai
Have a local UAE national as partner or sponsor
While there are many types of entities which do not require the participation of local UAE partner for establishing a firm in Dubai, having one by your side has its own advantages as well. This gives you the benefit of locating your business anywhere in the city and understanding the intricacies of the business world in a better manner.
Select free zones to own 100 per cent ownership
Free zones in Dubai and the rest of UAE offer 100 per cent ownership to foreign nationals. Establishing a company in free zones also means a speedy start up procedure, 25 years of lease options, duty free customs boundary, office and warehouse facilities and many other advantages.
Select a location that offers optimum benefits
Location is one of the most important factors to consider while opening a business in Dubai. Look for a location that is most profitable for your business and offers convenience to your clients/customers.
Confirm visa eligibility and other requirements
In order to start a business in Dubai, you need to obtain a visa. Visas are granted for almost all kinds of businesses. However, the number of visas granted depend up on several factors including nature of business, office size and employee/investor category. Additionally, a local partner needs to apply for your visa as company’s investor and furnish a letter specifying his/her or your personal information, reason behind visa application and the likes before processing.
Don’ts starting a business in Dubai
Don’t register in a free zone without proper examination
Each of the free zones in Dubai and the rest of UAE have been built around one or more activities. Therefore, it is very essential to find out which free zone permits the kind of business operations you wish to undertake in Dubai. Also, not all free zones offer all types of business facilities. Analyze the business spaces in the free zones and preconditions before selecting one.
Don’t select a license category blindly
There are several types of licenses issued by the Department of Economic Development. Thoroughly study the different licenses available or take the help of an expert to understand which type of license permits your business operations.
Don’t open bank accounts without knowing the bank charges
It is essential to know the bank charges beforehand as many banks impose varying charges.
Don’t agree to an oral sponsorship
When doing business in a foreign country with a local sponsor, it is advised to have a legal written agreement which specifies all the basic details of the business, its activities, profit and loss share, and partnership to avoid any future discrepancies.
If you have a plan to start a company in Dubai, all you need to do is decide on the type of business activities you wish to undertake and leave the rest to us. Our proficient and knowledgeable team of experts at Aon Management Consultants will help you setup an entity in Dubai and obtain the necessary documents and licenses in the shortest possible time. Contact us TODAY!