Setting Up A Business In Dubai

dubai city backgroundA Dubai company provides amazing opportunities for entrepreneurs and it has become a booming business hub. It will definitely put you on the right road that leads to success, but for many foreign investors, it can be very tedious. Here are a few things to consider before you set up a business in Dubai.

1. Choose the right activity

It is important to choose the right type of activity for your business in the UAE because you might need special permissions for it. The most important permission that you need as any business owner is a license to trade. Your type of activity will set the limits to the business that you run. For example, if you make shoes you cannot one day decide to import wood. Certain activities may demand even more permissions in order to conduct them.

2. Choose the right type of Dubai company

There are 3 types of companies for you to choose from and these will depend on the company’s business activity. The first is the Local LLC which is initiated when you want to sell goods to Dubai. It will always consist of a partnership with a local shareholder who will own 51%. An LLC is also needed when renting warehouses outside of the free zones.

The second is a free zone company which is used when you want to retain full ownership of your company. You can only do business in the free zone where your company is situated and you may only rent office space or a warehouse inside the free zone.

Last is an offshore company and when initiating this, no business is allowed in the UAE. You could however use the country as a foundation for international business activities. It is advisable for you to set up this type of company within the RAK.

3. Choose the right Dubai freezone

Free zones are government-created to offer companies a way to take advantage from the UAE without giving up full ownership. There are some limitations in a Dubai free zone and this is done to protect local interests. For this reason, you have to conduct business within the free zone and only rent property within the zone.

Most free zones are erected with specific goals in mind and different zones offer different benefits. It is vital that you make the right decision.

4. Look for the right location for your Dubai business

You need to decide whether or not you need office space or not as this will determine your location. Not all the free zone offers office space so you might have to work from your residential home if you can. As a manufacturing company you might need a warehouse and as a trader, you will need the ports at your side. Dubai is easy to access but if your staff makes use of public transportation you should be near the metros.

You will need to determine the amount of employees you have for visa purposes. Visas are authorised based on the floor space figure you rent. More employees means more floor space.

Free zone companies have to rent offices or warehouses and to do this you might have the option to rent a flexi desk. A flexi desk is a shared working space in a physical area that you can use for a few hours in the week.

5. Choose the right Dubai bank

Dubai provides a number of reputable banks and they offer a level of security that is not usually found in other countries. They are Sharia compliant, placing the focus on the sharing of profit instead of interest. It is easy to open a bank account in Dubai, but you need to appear in front of the banker when you apply.

6. Running a business in Dubai

Dubai gives you a huge amount of economic freedom that you do not find anywhere else. There are no taxes that you need to worry about and in some free zones, there isn’t even an audit required. You can keep all the income you make and there are fast paced opportunities everywhere. Ideas are very well accepted and Dubai truly is the place to grow!