Essential Steps For Starting New Business in Dubai, UAE
Starting a new business anywhere in the world can be a risky venture. However, with the proper preparation, do this at minimal risk. It doesn’t matter if it’s a start-up or just another offshore business. There are various steps you need to follow to start a business in Dubai quickly.
Dubai has become a MENA hub for investors and entrepreneurs thanks to its more lenient tax laws and policies. Several recent changes have made the UAE, and Dubai in particular, even more, attractive to entrepreneurs. The ease of doing business always plays a significant role in the development of the national economy. And it’s pretty easy to start a new business in Dubai.
Essential Steps For Starting New Business in Dubai
In the UAE, Dubai’s Department of Economic Development is responsible for processing the procedures an entrepreneur must follow to build their business. The Ministry of Economic Development, or DED for short, is mentioned several times. Here are the steps you need to take to start a business in Dubai:
Step 1 Choose The Business Activity
The business activity for which you are planning determines the type of commercial license you will need. Apart from that, you need to check if the business you want to do is legal in UAE and Dubai. Then you need to thoroughly study how to carry out this business activity and whether it is profitable or not in Dubai.
Step 2 Select the Location
Dubai consist of three economic zones where you can start a business. This economic zone is also known as jurisdiction. These three jurisdictions include continental, free zone, and offshore zone. You will need to combine these pros and cons with your business activities to find the economic zone that best suits your needs.
Step 3 Finalize The Legal Structure
The legal form your business entity will take determines many essential factors in the future of your business. For example, suppose your company’s legal structure determines the rules and regulations to which the company is subject. Even if a foreign entrepreneur sets up a company in Dubai, he cannot own more than 49% of his own company. A local sponsor/partner must own the remaining 51%. It means that the sole ownership option in mainland Dubai is not available to foreigners.
Step 4 Choose Trade Name
It would help if you chose a unique name for your company. It must not be the same as other company names in the UAE.
You must register the name with (DED) in Dubai. It will take approximately three days to write a trading name for you. The trade name you choose will be valid for six months.
Step 5 Get Initial Approval
Before proceeding, you’ll need to submit an application to DED with all of this selected information. You can decline the application if your company does not comply with UAE rules and regulations. Therefore seek professional advice before undertaking these critical steps.
Step 6 Get External Approvals
The DED will require additional permits based on your planned business activity. You need to get this permit from other government and non-government organizations such as embassies or banks.
Step 7 Pay Fees
With that, you need to send all documents to DED. When you take out a business license, you must make a final payment to DED.
Dubai is one of the largest financial centers in the world. It is one of the fastest growing cities in the Middle East compared to other cities. Registering a business in Dubai is a simple process. However, it is important to know all the laws governing business establishment in Dubai. Starting new business in Dubai is not very easy, but not too difficult. If you take the help of business setup consultants you can start hassle free Dubai business.