In order to Business Setup in Dubai, you’ll need a proper business plan. It involves evaluating your finances, legal paperwork, picking the right partners, choosing the best tools to market your product, and a lot more. According to a report, the UAE is ranked among the 50 top destinations for start-ups in the world. Dubai is currently the undisputed tech leader city in the Arab world. As a result, it is becoming a popular place among entrepreneurs from all over the world. The nation offers various business opportunities across numerous sectors – from tourism to technology. Therefore, here’s how you can set up a business in Dubai.
Choosing the correct activity
Before choosing a business activity for your entrepreneurial journey, consider the feasibility of your desired area in the Dubai market. Analyzing the area, reading about potential customer demographics, and considering where competitors are located are important aspects in choosing the correct venture. It is advisable to work with a company formation agent who can advise on what activities best cover your business.
Registering your company’s name
While selecting a name for your business, it should not already be reserved or protected by copyright by a similar business in Dubai. The name should not contain obscene or indecent words. It must also not be offending the general public even if it is a person’s name. The name should also not indicate God’s names or his divine attributes, neither in Arabic nor in English.
Choosing the jurisdiction
To promote international and local trade in the UAE, there are three business jurisdictions in the UAE. These are Mainland, Free Zone, and Offshore. Each jurisdiction has its own benefits and regulations in doing business in Dubai. Choose the business jurisdiction based on your desired business activity, nature of business, and shareholding patterns. For example, if your company wants to have an office in Dubai, then your place of registration should be the Mainland or one of the Free Zones.
Choosing the legal form for your company
When you start a business, you must decide on a legal structure for it. Choosing the right legal structure for your business starts with analyzing your company’s goals and considering local, state, and federal laws. By defining your goals, you can pick the legal structure that best fits your company’s culture. Moreover, as your business grows, you can change your legal structure to meet your business’s new needs.
Getting approval from the Government
The Dubai Department of Economic Development (DED) is a government body that issues licenses for corporate individuals or entities with the intention of starting a business in Dubai mainland. It is mandatory to apply for an Initial Approval Certificate, a document stating that the Dubai DED has no objection to starting a business in Dubai. Once you get approval, proceed to apply for your UAE trade license and begin the process of opening a company.
Preparing a Memorandum of Association (MoA)
The MOA is a fundamental and vital document required for the registration of a company. In addition, it is a mandatory document to set up a business in Dubai. It contains the details of the shareholders, board of members, regulations regarding the operation of the company, policies, safety and security aspects and so on. Hence, you need to submit the MoA along with other documents for business formation in the UAE.
Getting your trade license approved
A trade license is an officially approved document through which a person can start practicing business activities legally in the UAE. To get your trade license, an Initial Approval Certificate is required. The Certificate contains details of partners, legal type, and activities of the license. During this, you can issue a memorandum of association or a service agent contract according to the legal form that is previously specified in the initial approval.
Finding a local service agent
If required, you can find a local service agent from Technocrew Solution. A Local Service Agent is a UAE national who acts as a representative to enable a foreign entrepreneur to open a business in Dubai. The foreign entrepreneur holds 100% company ownership and holds full power in business operations. He will not have any legal interest in the operations, administration, company profits, or assets.
By following these steps, you can set up a business in Dubai. Finally, consider all of the above points before starting your business and follow your passion. If you really believe in yourself and the project you’re developing, it will make you more resilient and determined when faced with obstacles. Always keep calm under pressure and think rationally. Succeeding in business doesn’t come overnight. It takes a lot of planning, preparation, creativity, grit, and patience to become a successful entrepreneur.