Steps Entrepreneurs Need to Follow for Starting Your Company in Dubai
John Harry November 17, 2021Nowadays, many entrepreneurs from around the world wish to set up a business in a profitable country. Starting a business in the UAE will not take more than a week if everything is set up properly. And before you even think about diving deep, you should know the following steps.
Select a Business Structure
The type of business structure you choose further determines the licenses required for the business. However, before deciding which one to choose, it is a good idea to research what is and is not acceptable in the UAE government.
Ownership of the Business
Here are two basic things you need to know. Firstly, if you are a foreigner and want to have your business 100% overseas, you can do so by selecting a license and location in one of the many UAE-free zones. There are nearly 45 free zones to choose from in the United Arab Emirates. However, if you want to work locally, you will have to hire a local sponsor who owns a 51% stake in the company.
Choose a Name of the Business
This is a very important legal process. You can check the trade name on the official DED website. It cannot be the same as any company name that is in UAE.
Initial Approval
At this step, you will need to obtain a “No Objection” form from the Ministry of Economic Development. Once you receive the initial approval, you can proceed with the process of setting up your company in Dubai.
Prepare Your Agreements/ Documents
Depending on the legal form of your company, you may need to prepare and sign a Memorandum of Association (MOA) or Local Service Agent (LSA) / Local Support Company Agent (UAE National).
Select an Office Space
After you have prepared all the legal procedures and forms, the next step is to choose a venue. The UAE Free Zone Authority can help you find one based on your needs. Once you’ve set your physical address, that’s more than half the process.
Submission of Documents and Get the License
Before you reach the final step of your business registration path, make sure that your type of business does not require additional approval. Once everything is done, all you have to do is submit all the paperwork and process all the payments. You must pay for your commercial license within 30 days of receiving proof of payment. If you fail to pay within six months, the transaction will be automatically canceled.
From all the steps above, it is quite clear that the best thing you need to do to start your business is to research, research and explore. Overall, however, the UAE is proving to be an increasingly attractive location for starting a business.
Some More Things to Know About Business Setup in the UAE
Below are some more things which you need to know about setting up business in the UAE:
Office Space Requirements
The UAE has always been a property-based economy and the law states that a company license is always tied to the amount of office space as stated in the official local lease agreement. Therefore, starting a business in the UAE is always a combination of a license, legal entity and facilities. Free Zones offer a flexible desk solution to provide businesses with affordable office space options. Minimum office space conditions differ in different jurisdictions. Local government regulations often require companies to hire employees such as managers, directors, and company secretaries.
Company License
When choosing a free zone jurisdiction, it is very important to determine the nature of the activity and industry of the company being created. Each free zone specializes in a specific industry and business. Almost all business licenses in onshore jurisdictions are available in every sector, but the permits are based on the type of business permitted.
Some business activities are reserved for LLCs and some are reserved for branches of foreign legal entities. Onshore jurisdiction company licenses can be used to operate throughout the UAE. However, the situation is different for free zone companies, as a business license from a free zone jurisdiction allows the company to operate only within the free zone and outside the UAE.
Wrapping Up
As explained above, there are various documents and legal steps required to set up your business in the United Arab Emirates according to local authorities. Network, people and location are some of the main reasons to move your business to the United Arab Emirates. To set this trouble-free, a professional business consultancy company offers an excellent consulting service for your company. The team has no experience in starting various companies in the UAE. So please contact them today to learn more about managing business hiring or business hiring in UAE. Keep in mind only a professional company has the expertise to get the job done in the right way for entrepreneurs.
