Dubai is one of the most preferred destinations for start-ups and new entrepreneurs looking for a premium office location. The investor-friendly economy, easy taxation, and strategic location make Dubai the most favorite destinations for investors worldwide. However, first-timers are hesitant to start a business in Dubai. The reason is that new entrepreneurs are not aware of the local rules and regulations to establish a business in Dubai. Moreover, incorporating a business in the United Arab Emirates requires a local of UAE to own at least 51% of the company share. In spite of these challenges, Dubai continues to attract investors as it opens massive business opportunities for people who want to set up a business here.
Here, we will discuss the essential things one needs to know before planning to start a business in Dubai.
1. Know Your Business Activity
Before you start anything, make yourself aware of business activities you can begin in Dubai (UAE) and what activities are prohibited or are very complicated. You must know, all business activities are not allowed in UAE. There are some restrictions. You will require the approval of many government bodies and authorities to set up a business in Dubai. Know if the business activity you wish to engage in would appropriate according to Dubai standards.
2. Know Your Jurisdiction
When planning to start a business in Dubai, you must know that you must choose a business jurisdiction as per your business activity. The business jurisdiction in Dubai is locally separated to increase the productivity and efficiency of the business. Dubai as Free Trade Zone, Mainland Dubai, and offshore business establishments. The jurisdiction of a company depends on the nature of the business and business activities.
3. Find a Reliable UAE National as a Partner
If you have plans to establish a business in the Mainland of Dubai, it is compulsory to appoint a UAE national as your partner. It won’t be an easy task to find a reliable UAE national as your company partner. As per the UAE rules for investors, the UAE local partner will hold 51% of the partnership. The reason, it is recommended you find a silent partner for your business. It will provide you security and complete control over your business.
4. Choose a Trade Name
Find a trading name for your business as per the Department of Economic Development (DED). The trade name is to identify your business. It would be best if you found a name that is associated with your license type. Registering your trade name takes about three days, and it is valid for six months.
5. Approval for Business Activities Must
Some business activities are not allowed in Dubai. There is a restriction on some activities, and some are totally prohibited. The Department of Economic Development. Dubai DED is authorised to regulate, permit, classify, and issue a license to approved business activities.
6. Obtain your Business License
Now once you have an approved trade name and business activities, apply for a business license. The business license is issued based on your business activities and the jurisdiction of the business. From the time you receive your initial approval, it will take about seven days to obtain your license.
7. Book an Office Space
After all the formalities and paperwork a business in Dubai is complete, it is time to find an impressive office space. Book an office space in Dubai while setting up a business is necessary. You will have to submit the tenancy agreement and other essential documents to rent an office space in Dubai.