Business start-ups in Dubai have been encouraged. No wonder Dubai has attracted the attention of business investors since it began to show its economic stability in international markets.
Dubai's current market trends offer many opportunities for foreign investors to access imported and exported goods, as well as to take advantage of the city's growing tourist traffic, with almost unlimited potential customers coming to you.
You need to familiarize yourself with the facts associated with starting a business in Dubai and avoid the most common problems when it is profitable to start a business in the United Arab Emirates.
This means that there are some things you should be aware of when doing and not doing.
5 things to note when starting a business
1. Select a local guarantor and UAE nationals to register their company locally
You need to be familiar with the facts about starting a business in Dubai and avoid problems when making a profit in the UAE.
In Dubai, like other emirates in the United Arab Emirates, there are a variety of business opportunities. However, if you want to start a business and take advantage of Dubai's potential, you will need to register a limited liability company locally.
A UAE national must be included as a 51% partner, the so-called local "sponsor". Local companies give you the freedom to do business anywhere in the city. This is a boon for those who're starting a business without a mainland company formation in Dubai, as it provides the best place to choose from for your budget.
An annual fee must be paid to the sponsor, which can be negotiated. You should establish a relationship with your sponsor so that they are willing to help you solve any problems with the authorities.
2. If you want to own 100% of your own business, choose a free zone
Keep in mind that the only way to start a business in the UAE without a UAE citizen as a partner is to locate your business in one of the free zones. This is impractical for businesses that need to be in urban markets, such as restaurants and retail stores. Besides, enterprises working with the Government must be registered with a local guarantor.
What's more, buying or renting a home in a free-trade zone can be too high for your budget.
For entrepreneurs, the bonded zone has three major advantages.
- 100% ownership
Speedy startup
Duty-Free customs boundary.
3. Choose a location that optimizes suitability, convenience, and cost
Another important step in planning to start a business in Dubai is to identify the best place to start a business. If your customers or customers can't reach you, it's not good for you to start a for-profit business in the city, even though the economy is growing.
You need to position your business in the most profitable or convenient area. For a store or office, you can choose a location in the right city, which is the most famous place for the type of product or service you run.
If you plan to open a store in a bonded area, you must choose based on distance, cost, and whether it is appropriate for your product, business model, and trade requirements.
A lease agreement must be signed. If you want to start a small business, basic amenities such as telecommunications, storage space, and space within the facility are also basic issues that must be met. Other services in commercial real estate may vary widely.
4. Confirm your visa eligibility and requirements
For starting a business in the UAE, a visa that allows you and your employees to live in the UAE is a necessary condition for running a business.
Visas are available to almost all businesses
However, their number depends on various criteria, such as the size of the office, the type of business, the type of employee or investor.
If your Dubai start-up is a local business, you will need to work with your sponsor to obtain a visa - at least for the first time.
Applying for a business visa in Dubai is not as rigorous as most people think, because the bureaucracy is quite open to foreign investors who want to open a shop in Dubai - good business is the motto here.
However, you will need to have your sponsor apply for a visa for your start-up investor.
In addition to your passport and other legal requirements, you will need your sponsor to issue a letter outlining his or her personal information, reasons for applying for a visa, etc. before processing.
After that, if your sponsor agrees to give you a power of authorization, you can apply for a visa for your employee.
5. Assign a registered representative to guide you through the funding process
Commissioning a management consulting firm to start your startup can be your best choice.
These consultants will not only hold your hand throughout the start-up process but will register your business for you. They will help you open bank accounts, organize an accountant, carry out your renewals, and offer you nominee services.
You will find that their expertise in dealing with local government bureaucracy and free zone authorities is a great help in planning and display dispersing the costs of setting up your business.
In most cases, these companies provide a team of experts to plan your foundation from scratch - this includes the strategies you need to follow to start your business smoothly, break down potential costs, provide licensing and location options, develop solutions to potential business obstacles, and so on.
Besides, they will take care of all the requirements to help you start your business legally with minimal problems on your site.
Financing is not normally offered to startups. If you can't afford to pay the start-up costs, you might want to wait for this step.
