Dubai is a great investment destination since it is the commercial capital of the United Arab Emirates. The city provides many opportunities for investors all around the world. The current market trend in the town allows investors to take advantage of the widening tourist traffic and an unlimited number of clients and customers. However, if you are thinking of starting a business in Dubai, you first need to get acquainted with a few facts. Most potential investors do not understand the startup process. This article focuses on things you need to know about starting a business in Dubai.
1. Choose a Local Sponsor. You need to understand the various elements required to launch a profitable business in Dubai. Since there are many opportunities available, you need a locally registered LLC business to fully actualize its potential. You must take a UAE national who is also known as a local ‘sponsor’ as a 51% partner. A locally registered company will provide the ability to launch a venture anywhere in the area. You will have to pay your ‘sponsor’ a yearly fee, which is negotiable. Make sure you develop a good rapport with your ‘sponsor’ to smoothen your way with the authorities.
2. Free Zones. If you intend to set up a business without taking a UAE national as your partner, consider starting it in one of the free zones. However, free zones are unavailable for enterprises that must be in the city markets and those that work with the government. Free zones will provide you with three advantages: complete ownership, fast startup, and duty-free customs boundary.
3. Location. When starting up a business in Dubai, you must select a site that is suitable, convenient and optimizes costs. Setting up a profit-based company will not help you if your customers do not reach you. The type of product or service you are dealing with will help you determine the ideal location. If you decide to take the free zone option, make sure you consider the distance, cost, the suitability of your product, requirements, and business model.
4. Visa Eligibility. For you to start a business in Dubai, you must have a visa that permits you and your employees to live in the UAE. The UAE allows visas for almost all companies. However, the number depends on the size of the office, type of business, and the category of the investor. If you plan on starting a local company, you can work with your sponsor to get your visa. The UAE is not strict on visa application since their bureaucracy is open to foreigners wishing to set up a business.
5. Hire a Registration Agent. Consider hiring a business advisory such as TLZ to help you through the process of setting up your business. The agent will help you with opening a bank account, arrange an auditor, and renewals. Agents will help you to register your business with minimal problems.
With these tips, you are now a bit more prepared to start a business in Dubai.
