Dubai has opened its arms to overseas business people. With all the tax exemptions and possibilities, the city has become one of the demanding locations for every budding entrepreneur or investor. The financial sector is providing similar products, which will assist business people to business setup in Dubai. Starting a business in Dubai is easy but when you are new to Dubai it seems quite difficult but the best way to deal with this is to consult with Start Any Business consultants who will suggest you right path during the whole procedure.
Dubai is a prime business location for the various sector. Dubai’s highly structured atmosphere complies with the global practices and incentives business people to invest in better business ideas. Furthermore, operations include low taxes and provide full capital repatriation without currency restrictions. This kind of financial freedom is rare in a highly developed business atmosphere, hence business people from all over the globe find abundant options and potentials in the Dubai market.
The Steps for Business Setup in Dubai
· Selecting the Type of Business Activity
The first step for setting up a business in Dubai is to choose the kind of business. About 2000 kinds of activities of the business are listed in the Department of Economic Development. This would assist you to understand the legalities included in a special kind of business. If you don’t understand what category of trade activity your business falls under, you can directly contact the Department of Economic Development and they would assist you to choose.
· Select a Legal Structure
Once you selected your type of business, then you will have to select a legal structure of your company to proceed with easy documentation. There are a variety of company frameworks or legal forms available like for beginning a business outside free zones like Limited Liability Company or Private Shareholding Company. The kind of legal structure you have selected is based on the business activity.
· Choosing a Trade Name
This is an important step; the company name you select must represent your product or services. You can appoint business consultants who will help you with the all formalities and legalities. There are many rules and regulations included that require to be followed, which can result in penalties.
· Get a Business License and Open a Bank Account
Once you have completed all the above-mentioned steps, then you will have to apply for initial approval. This acceptance states that you do not mind applying for a business license. On getting the sanction you would have to open a bank account in which this sanction and the share capital is to be deposited. The share capital would remain with the bank till the business license is sanctioned.
· Drafting the Memorandum of Association
In this step, you would have to sign the local service agent with an Emirati who would represent your business for licensing legalities. The local person would have a 51% share in your business, although, it doesn’t mean that the loss and profit would be shared equally. A separate document would be prepared for the loss and profit distribution.
· Licensing
A license from the Department of Economic Development alone is not sufficient for some business activities. This type of business needs particular permission from the government authority or other relevant authority, which requires to be obtained. For instance, if you making a plan for a company setup Dubai in the tourism department then you would have to obtain the approval of the Dubai Department of Tourism and Commerce Marketing.
· Collect Your License
Now, you would have to present all the necessary documents to the Department of Economic Development. This documentation process takes around one to ten days for DED. After the verification and all legal documents, the department will send you an email and grant you a business license. After getting a business license you are ready to run your business in the Dubai market.
Document Required for Business Setup in Dubai
The documents required for company registration in Dubai are given below:
Sanctioned document from the Legal Affairs Department
Sanctioned documents from the Ministry of Economy Department
Copies of Passport, visa, NNOC, ownership certificate, residential proof, National ID
Copy of tenancy agreement
The form of license application
Partnership agreement from the public notary
Technical evaluation report
Trade name certificate