Dubai being one of the seven Emirates that make the UAE, it is an extremely lucrative location to do business considering it is one of the most populous and fast moving economies in the world. As the atmosphere in Dubai is constantly changing and there is always a vast amount of foreigners and investments flowing in to the city, setting up a business in the city might be very competitive and difficult. However, if you keep some of the key tips shown below in mind, the initial process should not be too hard.
Type of business
There are business types that you can choose from, professional, commercial or industrial and depending on the type of business you decide to enter in to, the location and the entity can be decided. When it comes to company formation in Dubai free zones, although there are various benefits, since it is away from the main business capital for a startup, gathering sales and awareness might be difficult. As for the type of business entities, you can choose from limited liability companies, a free zone company, sole proprietorship or a representative office. This all depends on the type of business you are in.
When it comes to the registration process, you can simply submit an application of the business incorporation requirement to the licensing department in the Economic Development Centre in Dubai. You will then be handed over the Memorandum of Association if everything goes smoothly. Further, documents such as the trade license and the commercial incorporation certificates will also need to be obtained. This is not in any way similar to an offshore company registration thus would take a much longer time and more documentation and paperwork.
Lease agreements and visa
When setting up a business, finding an ideal location to match your budget may be a grueling task as the real estate in Dubai is usually expensive, however, with some search and time spent, you should be able to and when you do establish it as the office premises make sure to obtain the necessary lease agreements from the landlords. If you do hire the locals as a workforce, there are separate legal requirements that must be strictly adhered to like obtaining an Establishment Card from the Ministry of Labour and also registering all the employees under the company and making sure that they all have valid residential or work visas, trade license copies, employment contracts and so on to avoid disputes and long bureaucratic encounters with the authorities.