Business setup Dubai: Registration agent, restrictions, licenses, Sponsor, itemizing costs, planning.
Business setup Dubai: New business opportunities are readily available for local and foreign investors, ranging from import and export trade to service-oriented profit-based ventures.
Taking advantage of this opportunity for success and profit requires businessmen and women to know the facts behind business setup Dubai to easily jump-start their own venture from scratch.
1. Working with a business registration agent
The easiest way to start a business in Dubai is to hire a United Arab Emirates [UAE] business registration firm to take charge of the setup.
Registration is made easy with experts handling all business-related functions, like planning, itemizing costs, filling up application forms, processing requirements, finalizing legal documents, and more.
It’s true that their expertise will cost you money but having an expert take care of your business set up in the city is worth every dollar you dish out.
2. Understanding restrictions
If you’re new to business setups in Dubai then the first step to starting one is to understand the restrictions.
Among the other Emirates in UAE, Dubai is more expensive with company registration. If you’re not aiming to open up a Free Trade Zone business then you need to work with a local sponsor to act as your 51% owner in the business, making it possible for you to set up your new venture inside the city.
You don’t have to manually do research on the subject since your agent will be able to guide you. It’s important that you find someone who will help you reach the objectives at the first attempt. Choosing from 2,000+ licenses and 28+ jurisdictions on your own is daunting.
There is also a matter of legal requirements involved in a business setup Dubai:
- Filling up the right application forms and preparing necessary documents (e.g. passports, documents related to business, your financial report, letter from your sponsor, business visa, and the likes) to be approved by a local government agency before you can incorporate your business in the city.
3. Types of business licenses
Local businesses in Dubai can be an LLC, which requires a UAE national as a ‘Sponsor’ with a 51% shareholding on paper.
Alternatively, it could be a professional license company where you can be a 100% owner with the UAE national as a ‘Service Agent’.
The type of company you end up with will depend on the activity you choose to do in the UAE. Different licenses can be carried out only by the different types of companies.
You could also register your company in one of the 26 free zones in the UAE.
Keep in mind; however, that opening up an enterprise in a Dubai Free Trade Zone can be expensive so investors with smaller budgets might want to think this through before they make a decision.
4. Finding a Sponsor
For foreign investors planning to set up a business in Dubai, a sponsor is a UAE national who will own 51% of your business on paper.
You can negotiate with them an annual fee regardless of how your business is doing.
You will be able to find 3 types of Sponsors
- Low annual fee. They will only sign incorporation papers. You will be on your own for everything else. US$ 3,500+
- Medium feel. They will help you with your incorporation and even go with you to the various government departments. You may also be able to negotiate fees for additional help with your sales to the government companies. US$ 14,000+
- Expensive Names. These are UAE nationals with high positions in the UAE governments or society. Mostly you will work with them for their prestige. You will hope that your work will get done based on their reputation. They are expensive. US$ 300,000+
Your sponsor may also help in getting the necessary business licenses for your business or even help you apply for a UAE business visa to freely initiate business transactions in the city.
The initial cost in a business setup Dubai is the cost of incorporating a profit-based venture in the city.
5. Itemizing cost
Even if the city’s law promises you less cost from tax, it is still best to properly itemize the cost so you won’t have to worry about going red with your budget during business setup. Get your agent to do so.
6. Research and planning
Aside from the above details involved in a business setup Dubai, it is best if you look into the local market for new business opportunities Dubai you can invest in.
Going blindly into the project will only spell trouble in the end, especially in the context of what type of business would be most profitable and give you a higher probability of success.
You can check local UAE business-related websites for updated news on the current market trend and business set up in Dubai or ask a local agent to keep you up to speed with the latest buzz in the UAE business world.