Man wants to touch the heights of success and business is key to success. You can see all the billionaire and millionaire are businessmen, I never heard about any single person who is an employee and ranks in the top rich people in the world. If you are not so rich, but you are a businessman then you are still better than a rich person who is an employee.
The reasons are many which can shed light on the importance of business, but here we are not going to discuss them in detail, but our main topic is about establishing a business in Dubai.
Well, there are several reasons which make Dubai a better place for setting up your business there. Actually, the United Arab Emirates has the most liberal trade regime in the Gulf. It is the best place for making your offshore companies.
The per capita income of Dubai is high for the past four decades that is the reason, most of the businessmen are shifting their base to Dubai. This process started years ago and still going on. So, we can say that Dubai is a global commercial hub.
You can also be one of those successful businessmen who is running their businesses successfully in Dubai. But for this, you need to take your first step which is to start your new business in Dubai or shift your existing business there.
Here we are going to shed some light on the important steps for setting up a business in Dubai.
The need for License
First of all, you will need a license for your business set up in Dubai. Basically, there are three types of business licenses in Dubai or UAE which are commercial, professional or industrial licenses. The type of your business will decide that which kind of trade license you actually need.
A professional license is required for setting up a business which provides services. If your business is based on providing some sort of services such as cleaning services, bookkeeping services, business advisory services, legal advisory services, or online marketing services then you definitely need a professional license.
If you are an eCommerce website then you still need a professional license instead of commercial license because you do not have any stock of products and totally depends on your supplier.
If your business is based on buying or selling of products and goods, then trade or commercial license is what you need. In other words, you need a commercial license for any kind of trading activity in Dubai, UAE.
If your business is based on some sort of manufacturing activity, then the industrial license is the need for such a business.
Places to getting Business Licenses
Department of Economic Development (DED) is responsible for the issuance of a business license in Dubai. It has around 2100 sort of businesses listed there.
You can directly get your business license from DED by following a thorough process. Another way of getting a business license for your business is to hire the services of any corporation providing “company formation and registration services.”
After getting a license some business like food trading, jewelry trade, veterinary activities and legal consultancy require further approvals from other governmental departments.
Follow Legal Rules You will require to follow all the legal rules which depend on your location and type of business. For example, if you are applying for a sole proprietorship, a mainland company, free zone company, a branch of a company or as a stand-alone company then the rules will be different for all.
Selection of Business Name
If you already have a business, then fine, but if you are planning to set up a new business, the selection of your company name is a very important step. Your business name should ideally indicate the nature of your business.
The need for a Big Investment
In most cases, you do not need to pay minimum capital at the time of setting up. But in some cases such as for a PJSC, the minimum capital is AED 30 million. For a PrJSC, it should not be less than AED 5 million paid in full. You have to mention your minimum capital in “Memorandum of Association.”
Selection of Business Premises After going through the legal process and forms, now you have to sort some place for your business set up in Dubai. Choose the premises which are suitable to your requirement and budget along with electricity, internet, water, and other amenities.
The hiring of Employees After approval of your business registration in UAE, you can hire your staff. But in some specific cases, you need to hire a manager before the registration process to oversee operations.
You can easily find such cases in the legal forms of the DED. Always, remember one thing that is you may not be allowed to hire an employee at all in the rest of the cases. So read the DED in detail.
Setting up a business in Dubai is not a difficult task anymore. You can easily fulfill your dream of setting up your business in UAE.
Whether you want to hire the professional services for company formation and registration or want to do it yourself, in both cases follow the rules of DED.
It is mandatory to have a local agent, partner or sponsor for getting the DED licenses (but not for a free zone business). In fact, having local contact is a great support for foreign nationals. I will conclude with the words that establishing a business in Dubai is very easy for all businessmen from all over the world.