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The Emirate city of Dubai is indeed a magnet for many entrepreneurs and investors who seek to open up their businesses. Located in a strategic place with easy investment regulation and a booming economy, this city provides opportunities. Yet, knowing and planning before a new setup of a business in Dubai is not a minor process. Therefore, these are some of the most critical pieces of information you must know prior to embarking on your Dubai venture:
Understand the Different Types of Business Jurisdictions
Dubai offers various business jurisdictions, each with unique benefits and regulations. The three main options are:
Mainland Company: Allows you to operate within the UAE market and internationally. You need a local sponsor (UAE national) who typically owns 51% of the business unless your business qualifies for 100% ownership under the recent amendments.
Free Zone Company: Suitable for those seeking 100% foreign ownership, tax exemptions, and easy processes. However, operations are mostly limited to the free zone or international markets.
Offshore Company: Suitable for businesses trading internationally or seeking asset protection. Companies cannot operate within the UAE market.
Choose the Right Business Structure and License
Dubai also offers various business structures, including sole proprietorship, limited liability companies (LLCs), and partnerships, each with different legal and operational implications. Also, the right kind of license needs to be chosen. There are essentially three types of licenses -
Commercial License: For trading and commercial activities
Professional License: For service-oriented businesses like consultancy or design firms
Industrial License: For manufacturing and industrial activities.
Be Mindful of Legal and Regulatory Requirements
Any new business setup in Dubai comes with the prerequisite adherence to some specific legal and regulatory requirements. Such include:
Trade Name Registration: Ensure that your proposed name for the business aligns with the UAE's naming conventions.
Memorandum of Association (MoA): Depending on your kind of business, you will be required to draft an MoA indicating details on the ownership as well as operation procedures.
Approvals and Permits: Depending on the industry, further approvals from regulatory bodies may be needed.
Know the Costs
Starting a business in Dubai involves a lot of costs that depend on the jurisdiction, type of business, and activities. Some of these include:
License Fees: These vary depending on the business activity and jurisdiction.
Office Space Costs: These are necessary for Mainland and Free Zone setups.
Visa and Immigration Fees: For you, your employees, and dependents.
Additional Costs: Registration of trade name and legal fees, as well as government approvals.
Leverage PRO Services for Smooth Setup
Forming a business in Dubai requires dealing with multiple governmental departments for approvals, visas, and documentation. A professional PRO service can save time and effort and possibly avoid errors in your attempt to set up a business. PRO services address:
Visa Applications and Renewals
Document Attestations
Trade License Renewals
Regulatory Compliances
Conclusion
At Free Bird, we offer all-inclusive support for establishing your business in Dubai. Our team of experienced consultants will help you make the right jurisdiction, get the legal documentation done, and take care of all regulatory requirements. Whether you want to establish a Mainland, Free Zone, or Offshore company, we ensure hassle-free setup.
Our customised solutions, transparent pricing, and commitment to client success make us a partner of choice for business setup in Dubai.