Kick-starting a business is itself a challenging task, more so when it comes to setting up one in a foreign land. While many people dream of establishing their business in the commercial dreamland that Dubai is, the initial legalities and formalities can seem overwhelming. Well, not anymore!
Want to know why? It is because of Two Crucial Factors –
- The Investor-Friendly Government of UAE
- The presence of experienced and highly proficient business setup services in Dubai.
Your Guide To Starting A Business In Dubai
Now that you know that there is help available, the task of establishing your enterprise in Dubai might seem easier than before. Let us take this a step further by helping you with a detailed guideline on starting a business in Dubai.
- Do your Homework
First and foremost, you must understand the underlying potential of a business in UAE, and only if the probability of its desired success seems promising you should go ahead. If required, you should conduct systematic research, complete with a SWOT analysis of the business that you wish to start.
- Select The Jurisdiction
Once you have chosen a business activity that seems favorable, go ahead and choose the jurisdiction in which your business can operate as per your business needs and goals. If required, reach out for expert help in this regard.
- Determine The Company Structure
Based on your chosen business activity and jurisdiction, take your pick of the best-suited company structure from the available alternatives, namely – Sole Proprietorship, General Partnership, Partnership-en-Commendam, Limited Liability Company, Joint Venture Company, Public Shareholding Company, Private Shareholding Company and Professional Company.
- Get the Essential Approvals
Once you have determined the business activity, the jurisdiction, and the business structure, go ahead and pick a name for your business that isn’t already in use. That being done, you ought to get the relevant approvals from the Department of Economic Development.
- Get Your Licence and Registration
If you have chosen to establish your business in the UAE mainland, you can apply for a Commercial License, Professional License, Industrial License, or a Tourism License. If, however, your business will be functioning in the UAE Free Zone, your license may fall under a different category.
Along with your licensing application, you will be required to furnish a set of documents, which, when verified and processed, will ensure the registration of your company.
- Find A Local Partner / Sponsor
This is one of the most crucial steps of setting up your business in Dubai, as it is mandatory for a UAE national to either sponsor your business or act as a local partner. As you may have guessed, this task is best left in the hands of an experienced service provider.
- Draft Your Memorandum Of Association
This is a legal document that must be in accordance with governmental standards. Your MoA must carry the details of the shareholders as well as of your company, complete with minimum share capital.
Now that all the legal formalities are completed, you need to rent an office and sign the relevant tenancy agreement and Ejari for the rented space. After this, wait for the initial approval by the DED. Within a week, you will be able to collect your business license, after the submission of the governmental fee, and you will be ready to start your business activities!
It’s that simple! Well, actually not. If you consider the sheer amount of documentation and the number of visits to various government offices, the entire process may take a toll on your new business plans. This is why it is strongly recommended to hire the services of the leading business setup service in UAE. After all, well begun is half done!