Setting up Company in Dubai is always a good idea that is also highly encouraged in Dubai. Why it is a good idea, because Dubai has become the most attractive spot for the investors from the last few years. The economic stability of Dubai can be seen in international market that elevates its importance in the sector of business investors.
Dubai is the best option for setting up a new company in entire Middle East as it offers liberal economic policies. It offers modest corporate tax rates, lavish infrastructure, trade route accessibility and many other tempting schemes. These appealing policies encourage many well known corporations and entrepreneurs willing to set up a company in Dubai. The interesting part is that there are many primary industries that are secured by providing free zones in Emirates. The purpose of that zone is to provide 100% tax free foreign ownership with the policy of returning all capitals and profits back to the investor.
With these advantages and benefits, it is very profitable and remunerative for company formation in Dubai. You can also say that it is easy to start a small or large business too. Why it is easy, because if you have all required documents in hand then you can setup a new company in just a single week.
The question arises here that if setting up a new company or starting a business in Dubai free zone is that much easy then why every business investor has not successful story to tell. The answer is very simple. They need well organized, strategic and highly experienced business setup consultants in Dubai. Don’t be worried, we will give you complete step by step guideline to understand the process of setting up a business in Dubai. You just need to follow these steps.
Steps to be taken for the formation of new company in Dubai:
Get Sponsored by a Local UAE National for Starting up a local business
Everyone knows that starting up a business is always challenging whether it is in Dubai or somewhere else. You just have to keep few points in your minds that would help you starting and setting up a profitable company in Dubai. You have great margin of business opportunities available in Dubai territory but eventually you are going to need a locally registered LLC business to start your company.
You will need a local sponsor that must be a UAE national with 51% partnership in your business. It would help you greatly in residing or locating your company anywhere in Dubai city. It means you can easily have an affordable location for your company setup. A good relationship with your local sponsor would guarantee your success in business as he will be helpful in facing and sorting out all the problems with authorities. He will help you and your business out as a service agent in UAE. A well organized and detailed agreement must be prepared along stating the responsibilities, duties and fee of the sponsor. You will also need a no-objection certificate from your local sponsor to activate your business.
Documentation: Get your Memorandum of Association (MoA) approved by DED
Your company needs some conditions or rules on which it has to be run or move forward. The document listing these basic conditions is called Memorandum of Association. It will clear the purpose of your business and other technical facts.
You need to get your Memorandum of Association (MoA) approved by Department of economic Development (DED) Dubai. You will need a legal adviser or a business setup consultant to get this done.
Select a trade name and get registered with DED
Choose a unique but relevant trade name and register it with the Department of economic Development. The DED can reject or change the suggested trade name in case there is already another company existed with the same name given by you.
Select a free zone to get 100% ownership
If you don’t want a local sponsor to startup a company in Dubai and want 100 percent ownership then there is only way that is to locate your business in one of the Free Zones. There are several freezones available like Ajman media city freezone, Ajman freezone, Shams freezone, Fujairah creative city, IFZA freezone and UAQ freezone. There are few consequences that come with Free Trade Zone, like it might be costly for you and hard to afford a purchased or rented place. Secondly if your business is working with the government then you must need a local UAE national to sponsor it. If you can afford free zones there are many benefits you can get from free zones to startup a company in Dubai. You can gain 100% ownership, faster startup and also a duty-free customs boundary.
Select an ideal location for your Company
Suitable and ideal location for your company is mandatory. A perfect location will guarantee the success of your company. Include and give importance to this point while planning a business startup in Dubai. If your customers or clients cannot reach you easily then you are definitely failed to set up a profitable enterprise in the city.
You need to get best idea about most profitable area in the city specifically for your business or company. Choose the most convenient area or location to your business, which would be helpful in a successful start. Select a shop or office in the area that is most relevant to the product you are launching and other business requirements.
After selecting and getting the suitable location for your company, you need a tenancy contract or a license in a proof of a registered office address. If your company is an off-shore company then the address of a registered agent appointed by the company will be provided to get registered office address. You will also need to satisfy the authority about telecommunication ways used by your company, as well as the storage and space inside used by the establishment if you have a small business. When it comes to handling large scale business you would need to clarify more points to satisfy the authority and to get licensed by them.
Get a Trade licence from DED
You need a trade license that would show the type of your company or business and will help fasten up your business formation process. The license will be issued by Department of Economic Development (DED). There are three types of trade license (i.e. industrial license, professional license and commercial license) depending upon the nature or the activities of your business. If your business is related to manufacturing then you need industrial license. If you are setting up a company in Dubai that is some educational institute or a law firm then you need Professional license. If it is a trading company then you need Commercial license. You just need to provide required documents to the DED and CRD (Commercial Registration Department) and pay the fee for license. This process will take about a week if you are providing complete documents.
Visa eligibility for you and your employees
Visa eligibility for you and your employees plays vital role in setting up and running a new company in Dubai. Visa permitting will help you and your employees to live and work in UAE and it is mandatory.
You can have visas for your business easily but the number of visas depends on the size and nature of the business. Attaining business visa is not difficult in Dubai. The business environment is becoming friendly towards foreign investors and the visa policies are getting less strict for the businessmen. You just need a sponsor who can apply a visa for you as the investor and also provide a letter that would tell his and your information and other important required points. If your sponsor gives you the authority to apply for the visas of your employees then it would be easier for you to setup a business as per your requirements.
Get a registration agent to startup your company
The best option to get registered is to hire a business advisory firm for your business. These legal consultants will not only help you in understanding the whole process but also help you in registering your company. They will help you in opening bank account, arranging auditor for your company, and will also offer you more services to give boost to your business and fasten up the startup process. They will handle the matters with government and free zone authorities and also will help you out in planning and organizing everything.
The above mentioned steps are for general idea as how to startup a new company in Dubai. It is more efficient approach if you hire a local business advisor to setup and register your company. They help companies and firms in formation of new business in Dubai through registration, tax advisory, and with many other services. They take care of your business purpose, vision and objectives and are trained to provide you with best services for your new business. So, Setting up a company in Dubai couldn’t be that much difficult if you get advantages from the expertise of a legal consultant or adviser.