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Surrounded by progressive economic growth and entrepreneurial spirit, Dubai has been accounted as an ideal hub of travel, job ,and business opportunities. The booming resources of Dubai encourage investors across the world to engage or expand their business in the city. Additionally, small and medium scale entrepreneurs have been looking into Dubai’s potential as a place perfect for shaping their ideas and molding their dreams into reality in a profitable industry.
Starting a business in a foreign country such as Dubai may be one of the biggest decisions you’ll ever make. Rationalizing the promising business features that the prospective place of your business has to offer is probably the topmost priority. Hence, the significant question is, why Dubai?
The imports and exports of Dubai market are strategic since the region is found in the middle of UAE’s west and east coast. The location provides a convenient access to billions of market consumer from all over the world.
WORLD CLASS INFRASTRUCTURES
The UAE, specifically Dubai’s infrastructure has been regarded and ranked as one of the best in the world. There is no worry for you when it comes to finding an office, a manufacturing area and a retail unit since Dubai is not likely to run out of buildings and land resources. Moreover, being 5th in port infrastructure and 8th in the ground transport network, Dubai is ideally a place to start a business.
STABLE POLITICS & ECONOMY
You won’t have to worry about the security of your business when in Dubai since UAE in general, is said to be one of the most politically stable countries in the Middle East. With low crime rates and social dominance, Dubai’s foreign investors enjoy the “safe haven”. Moreover, with the economy being prosperous and stable at the same time permits the healthy growth of businesses.
One of the reasons why Dubai is preferred by investors is because of the low business tax rate. The government of Dubai especially the economic regulating body, Dubai Department of Economic Development facilitates investors and aspiring entrepreneurs in setting up their business that is why the taxes are low. This kind of government support aims to give essential administration services to both international and local business people.
After dealing with the points as to why you should consider Dubai as your business incubator, the next important step is to know how. Here is the overview of Business set-up in Dubai;
Step 1: Conduct a thorough research
In any type of business, an extensive research in the type of target market is necessary. Dubai offers various business models and opportunities to investors and is governed by complex legal policies and procedures for setting up a business.
Step 2: Choose the appropriate type of Business Activities
Dubai and UAE states offer more than 2000 options where aspiring entrepreneurs can select from for business operation. From these unlimited opportunities, choose the type of business that you can expertise and the DED will have it approved.
There are many lists of business activities that are available to make adopting business models easier for individuals. These include import and exports, giving out consultancy services, website creation, and opening business outlets.
Step 3: Partner up with a Local Sponsor
A local sponsor or agent is a certified UAE national. A business set up in any emirates of the UAE mandate a sponsor who will own 51% of the company shares and is permitted to practice managerial powers. The sponsor may be an individual or a company, however, they are not demanded to invest in your business operation. Negotiating the fee to be paid on the sponsor each year of the partnership is an important strategy.
Note: If you prefer a full ownership type of business set-up you may want to consider the UAE free zones. The initial business set-up in the free zone authorizes you with 100% ownership and managerial rights. Also, you would likely to enjoy the benefit of convenient set-ups with duty free-customs.
Step 4: Memorandum of Association
This is a legal document state all the external engagements of the company with service providers, vendors, and stakeholders. The preparation and signing of MOA are compulsory when you decide to establish a company in the city.
The MOA entails the following details
Step 5: Strategically choosing the accessible business location
The nature of your business and the potential location should go hand in hand. A centrally located company in the city is perfect for those who frequently conduct business meetings with clients since the office is easily accessed. An office located near or on the metro stations are also an advantage since the majority of the community prefer to travel by metro.
Step 6: Obtain a Business Licence
There is various type of licenses to choose from for an individual to choose from.
Majority of licenses are issued by DED and other bodies include Abu Dhabi Tourism and Culture Authority.
For a company that exercises business activities such as general trading, real estate, construction and transportation
These are for individuals who are involved in profession or craft that relies on physical effort or assisted by tools and equipment.
For a company who owns agricultural farms and marine products.
These are for individuals who are involved in profession or craft that relies on mental and intellectual talents.
For companies who owns a manufacturing unit and factories
For companies who specializes in tourism activities
Securing a license means documenting your business activities legally without any objections from the UAE Authorities. One may opt to seek assistance from local registration agencies who are expert in business registration laws. They are well versed in coming up with a complete plan in setting up business in Dubai which includes location, bank account opening, top management hiring, consultants and managers on tax and even a budgeting plan of entire company expenses.
Limited Liability Company is the major form of local business registration in Dubai. This form usually requires at least 2 shareholders with one being a UAE national. As for free zones, a complete share is owned by the investor.
Nevertheless, the success of small business in UAE or in the beautiful city of Dubai is secured by obtaining a license. The procedure and rules of business set-up in Dubai is complex with some restrictions, this is however aided by hiring lawyers or registration agents.
There is no perfect planning, there will always be loopholes and downside that will not be anticipated and comes in surprise. One just needs to have a constant determination and will towards the dream- a successful business in Dubai.