Steps to establish business in Dubai

Business Setup in Dubai: Steps to establish business in Dubai: Once all legal procedures have been sorted out, it will take about a week or so to start your business in the UAE. However, prior to initiating the legal formalities, there are few aspects required in the process which needs to be taken into consideration.

Business Type

The type of license to apply for will depend upon the business type you wish to start. Be it industrial, professional or commercial, it is likely to define your operations. But during the selection process, you need to keep in mind certain activities like jewelry trade, food trading, legal consultancy and veterinary activities, which may need other governmental departments to provide further approvals. Dubai’s DED (Dept. of Economic Development) is said to have list of 2,100+ activities to select from. In case, specific type is not present in this list, you should contact the DED. Every free zone here comes with its own approval formalities and regulations.

Ownership

If you prefer to have 100% company ownership being a foreign national, then you can choose a location and license in any of the several free zones here in the UAE. Each free zone is known to cater to specific activities. Hence, with greater clarity with the initial step will help you to determine the best available option. 45+ free zones exist in the UAE concerned with different categories of operations, thus providing you with plenty of choice. In case, you plan to operate locally or require local license, then check with the DED (Dept. of Economic Development) to obtain a license. However, certain restrictions with regards to foreign ownership are to be adhered to with the DED license, based upon varying legal structures of the DED.

Legal Structure

There are set rules with regards to your establishment’s make-up, depending upon your business type and location. For instance, if you prefer to start legal consultancy business, then it can be undertaken as stand-alone company or its branch. This activity, however, does not allow sole proprietor. Every free zone comes with its very own restrictions pertaining to company structure, which can be checked out in the zone’s official website.

Trade Name

It is part of legal procedure and indicates nature of business, except it another company’s branch. The official DED website has all the rules pertaining to trade names.

Share Capital

Generally, the MOA (Memorandum of Association) of proposed company mentions clearly minimum share capital.

Premises

On getting ready the legal forms and procedures, few offices are to be shortlisted with costs along with other details. On completing the set legal formalities, you can have a clear path ahead. You can get assistance in the free zones to identify premises that suit your specific needs and to set up water, internet, electricity and other amenities.

Employees

In majority of the DED legal forms, manager has to be hired to manage operations as well as have him prepared prior to registration approval. In several cases, you might not have the privilege to hire any employee. Intelaq license holders (home based Emirati entrepreneurs based license) for instance, cannot hire employees, but allowed to engage contractors. You can check out the details here! Each zone in the free zone segment comes with its very own regulations to follow pertaining to business structure.

Local support

There is a genuine need to recruit a local agent, sponsor or partner to obtain DED licenses and it is excellent support exclusively for foreign nationals. Having local contact is sure to help achieve progress in the business setup at free zones, but not mandatory. Dubai being a favorable business destination does boast of providing entrepreneurs of all nationalities to set up their business easily and with very less effort.

Originally posted 2021-09-29 09:48:05.