How to start a new business in Dubai
Dubai is considered one of the most vibrant cities in the world. Not just with regards to tourism but it has also proved itself to be the master of business buildings and prosperously established itself with a wide range of options starting from job opportunities to company development.
Business setup in the city of Dubai is a spectacular idea. The whole journey of starting a new business and then running it revolves around dedication, bravery, and endurance. With regards to ease of starting and doing business, it has been ranked on the 21st number. Now the question arises how to can a person successfully start a business in Dubai. Here is an easy guide to help you on your journey to great success.
Decide your business activity from the start
When it comes to starting a business in Dubai, there are a number of limitations that need to be kept in mind. There are certain business activities that are not allowed in Dubai so one should be aware of these. Hence, the very first step is to make a decision about whether the business you intend to start falls under the set standards of Dubai.
Select the right jurisdiction
Business jurisdictions in Dubai are divided among zones with the purpose of boosting the competency and productivity of the businesses. There are different zones such as mainland business setup, offshore establishments, as well as free zones. The zone to select depends on two main things which are the nature and activity of a business that is being started.
Make a choice between shareholding structures
Starting a new business depends on the shareholding structure. This helps in giving the new business a legal shape. There a number of structures that one can consider such as sole proprietorship and shared partnership.
Have a partnership with a reliable and dependable UAE national
To start a business in Dubai especially in mainland one has to partner with a UAE national. The main challenge that arises here is to find someone who is reliable and honest to come into partnership with. The best option here is to get into partnership with a silent partner.
Register the company name with DED
When setting up a company it is essential to give it a name. The name must fulfill the standard set by the Department of Economic Development (DED).
The business activity needs to be approved
There are certain commercial activities that are not permissible in Dubai. Hence it is very important that you do not opt for anything that is prohibited. Get approvals for the new business from bodies that come under the government.
Rent a physical place
Having a physical place is a very important requirement when it comes to starting a new business in Dubai. Thus it is obligatory to have a place from where you can operate.
Draft the MOA and follow all matters regarding registration and license
Drafting the MOA is another crucial step. Along with this comes the need to follow up the registration and business licensing procedures. Last but not least there is a need to collect the business license that comes after registration of the company. Only after this can the business activity formally begin.