Quick Guide to Business Formation in Dubai
20 March, 2015
Dubai is an economically strong city that is continuing to grow. This makes it an attractive option for investors who are looking to start a business in the area. The government tries to make it as easy as possible to start up a company in Dubai, but its still good to have an idea of the basic process.
What Type of Business?
First, you need to choose a type of business. Will you be working in a professional, industrial, or commercial capacity? A professional will offer personal services, whereas a commercial company will include businesses that offer goods or service. This could be a retail company or a restaurant. Industrial companies work in the manufacture or packaging of products. It is important to be very clear about all of the different business activities that you will engage in, so you can be sure you are getting the right license and setting up the right type of company.
The Legalities of the Business
You then need to consider the legalities of setting up your business so you choose the right type of company setup. You can open up partnerships, sole proprietorships, company branches, LLCs, and more. It is important to choose the right type of forms and applications, and to provide the right paperwork, for the different types of businesses. This can be confusing, and it might be beneficial to have some help with this process.
In addition, you will want to think about the workers for the company at this stage, even though you havent started the business yet. Will you be bringing in some workers from your own country? Will you be relying mostly on workers in Dubai?
Another important consideration is determining where you will set up your business. If you set up in many parts of Dubai, you will not be able to have full ownership of your company. You will need to have at least 51% ownership from nationals of the UAE. However, if you choose to set up in one of the many free zones in Dubai, you will be able to retain 100% ownership of the company, and you will be able to enjoy all of the advantages, such as the tax benefits, that starting a Dubai company can offer.
These are the basics of what you will need to know and do when you are getting ready to set up your company in Dubai. It is a fantastic city for many types of businesses, and it does not matter how large or small your company might be. Just make sure that you understand all of the paperwork requirements that are involved.
If you are going to start a company in Dubai, you might find that working with a business consultant to help you with the process from start to finish can make things faster and easier. It will also ensure that you are doing things the right way. Just make sure that the consultant you choose has experience when it comes to Dubai, as it has a number of specific rules for different areas.
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