Dubai is the prime setup location for a successful business. This location enables you to trade internationally. But the most attractive feature of Dubai is the growing economy of this modern city. This economy attracts investors globally. A business setup in Dubai can lead you to the height of success if you work and manage appropriately. Here is a step-by-step guide for your firm!
Steps for business setup:
1. Select a Business Activity
Once you decide on the type of business activity, it’ll be easier to move ahead. It will help you to obtain the essential license. And a license is ultimately decided by the type of business activity you pick. It is also important to note that not all activities are permitted in the UAE. Before establishing your business in Dubai, you must obtain approval from many departments. Thus, the first step in doing business is determining if your company conforms to Dubai criteria.
Moreover, you should choose the activity that fits your interest. If you lack knowledge and interest, you can never deal with any activity. Therefore, being wise in this initial step is mandatory.
2. Choose a Jurisdiction
The Dubai government is constantly establishing new laws and opportunities for investors. They are continually updating the framework to make it more user-friendly for enterprises. Dubai provides mainland business formations, free zone company formations, and offshore business formations. Before launching a business in Dubai, one should know of all the jurisdictions accessible. Once you understand their benefits and drawbacks, you can choose one based on what appears reasonable for the business you will be running.
All three jurisdictions have distinct policies. These policies will help you in various ways. However, a free zone is the most excellent and successful choice, according to a study. Moreover, if you’re looking for a great site where your firm can grow and make inconceivable profits. You should notice the advantages of establishing a business in a Dubai-free zone.
Furthermore, some of the most significant advantages of starting a free zone business in Dubai are the following:
- 100% ownership of the company without the need for a regional sponsor’s assistance
- Personal income and capital gains taxes are not levie
- Import and export duties are at the very least cover
- The administration receives a 0 percent corporation tax
- One of the lowest value-added taxes in the world (at 5 percent
- Profits repatriate without restriction in any of Dubai’s free zones
- Access to the UAE’s extensive network of anti-dual taxation agreements
3. Select a Business Structure
Dubai provides foreign investors with a variety of business formations. After primary research on each company formation in Dubai, you will have many options. Secondly, restrictions surrounding your company’s composition vary depending on your area and type of business. For example, suppose you want to start a legal consulting firm. In that case, you can do it as a subsidiary or separate entity. In Dubai, the following types of business formations are available:
- Sole Proprietorship
- Joint Venture
- Public Shareholding Company
- Private Shareholding Company
- Limited Liability Company
- General Partnership
- Professional Company
4. Seek out a Local Sponsor
This step is helpful if you want to start a business in the UAE mainland. Finding a trustworthy and dependable UAE business partner is the problem. It is reported that the UAE local partner will control 51% of the partnership, with the remaining 49% owned by the entrepreneur.
5. Register your company’s name with the DED
In this phase, you must choose a business name. Furthermore, there must be no similarity to any current enterprises in the UAE. Once you choose a name, register it with the DED. A trade name may be registered in around three days and is valid for six months.
6. Approval of the Commercial Activity
Moreover, a few business activities do not work according to DED law. According to Law No. 13 of 2011, the Dubai DED is the responsible agency for licensing all economic activity. This does not apply to free zones or offshore business formation. Furthermore, if your firm is legally restricted, you may require a few external approvals. Non-governmental and semi-governmental groups must get these permits.
7. Obtain the DED’s Initial Approval
The initial approval is DED’s authorization to register your firm in Dubai. As a result, before establishing the firm, you must obtain preliminary permission by completing an application form, attaching supporting documents, and sending it to the government. You can start your business now and continue the process of obtaining your trade license later.
8. Submit Your Business License Application
Once you register with DED, the business license will be available for collection. Secondly, company licenses are issued primarily on the type of business activity and the location of the business. Furthermore, the three most essential licenses for establishing a business in Dubai are commercial, industrial, and professional. When you receive your first approval, it takes around one week or more to obtain the trade license.
9. Open a Corporate Bank Account
At last, every businessman dreams of growing his company. This is easy if you keep track of money flow. You need proper money and transitional management. Hence, for this purpose, open a corporate bank account in Dubai. This step will help you keep a record of your business. Consequently, you can manage all the money problems professionally. This is the ultimate solution for your success. Secondly, you grow when there are no misunderstandings. Therefore, a bank account for your business is a must.
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