A strong and well-built financial system and sturdy political environment are the primary advantages of starting a business in Dubai. There are so many international companies which are actively running their business in UAE.
The growing and developing economy of Dubai can be rewarding to those who are planning to expand or start their business. However, there are some restrictions for the people who are not a resident; still, Dubai Govt. encourages business start-ups.
Being a non-resident of UAE, it might be challenging to invest in a business in Dubai. However, following all the legal procedure can ease the process of getting started with the new company.
On average, it does not take more than one week to begin with the start-up venture after completing all the legal processes.
There are some significant points that one needs to keep in mind before dealing with all the legal formalities.
Business Type
The idea of your business is going to determine which kind of trade license you need. The permit can be either commercial or industrial, or professional. The type of license is going to define certain business operations.
However, specific trades like food, jewelry, or if you wish to set up a legal consultancy, you will require more than a license to run your business. In such cases, getting approval from the Dubai govt is a must if one is establishing his business. For any help in setting up your dream project in UAE, choosing a trusted partner like https://merritt.ae/ is going to be effective.
Taking Ownership
One can take ownership of their business in two ways, either as a foreign national or by operating the business locally.
In the case of foreign national, if one likes to take 100 percent ownership of their start-ups, then it is a must to opt for the license at first. UAE provides more than 45 free zones with specific activities in each zone. The number of free zones is enough for any businessman to find the best option and get started.
On the other hand, if a person demands to manage their company locally, then the person needs to arrange a local license. The Department of Economic Development or DED is responsible for providing the local permit.
Being a non-resident of Dubai, the legal structures are bit twisted while getting a fair share of ownership of the business. Though there are few restrictions in case of getting a local license from DED, it can still be taken care of by trusted enterprise service providers of Dubai.
Legal Structure
Rules, regulations, and restrictions are different in every free zone. In order to get details of the same, it is necessary to go through with the rules by login into the websites of the zones.
Apart from that, some other points are also applicable depending on the location and business type. Like, if there is a legal consultancy farm getting opened, then the rule depicts that there cannot be only one proprietor.It is vital to recognize all the rules before finishing the legal procedure.
Name of the Business
Unless one is expanding their business by opening up a new branch in Dubai, it is one of the primary concerns of having a unique trade name. The name needs to be appropriate to indicate the type and operation of the business. The official website of DED has all the important rules related to business names.
Share Capital
In almost every case, it is not mandatory to pay the minimum capital while setting up the business. However, the minimum capital is mentioned in the Memorandum of association of your company.
Location
Once you complete all the legal processes, you can start short-listing the location of your offices. Once you choose your office premise, you can get started as soon as your legal papers get ready.
In the case of the free zones, assistance such as finding suitable places, or setting up with electricity, internet, and water will be provided.
Hiring Employees
The rules of DED state that even before the business registration gets approved, it is mandatory to hire a manager to look after the company’s operation. There are some exceptions too. Such as, the license holders of home-based business owners are not allowed to hire full-time employees. As mentioned earlier, the main recommendation is to go through the rules of different free zones.
Local Support
If one wants to manage their business operations locally, then according to DED rules, taking the help of a local agent is a must.
However, local help is obviously practical to run the business smoothly; in case of free zones, it is not mandatory to hire a local agent.
Conclusion
Expertise and being bold are two major requirements if one wants to start a new venture in Dubai. If you have the zeal in you, starting up and expanding business in Dubai will be a rewarding and fantastic experience.
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