What are the Ways to Start a Business in UAE?
Plenty of opportunities are available due to the current market trends of UAE. This leads the foreign investors for tapping into commodities import/export, taking advantage of the tourist traffic which provide an unlimited number of potential clients/customers, etc.
So, to start and avoiding the problems encountered during launching a business in UAE, you need to get acquainted with various facts associated with it. Once the legal procedures are solved, it will take nearly a week for business start-up. Some of the elements that are required to process as follows:
The kind of business License depends on business type viz., commercial, professional or industrial. But there are certain activities like food-trading, jewellery-trade, veterinary-activities and legal-consultancy need further approvals from different government departments. From the Department of Economic Development (DED) in Dubai, you can get a list of 2100 activities to choose from. Carefully choose your license category, that it should allow your business model and the validity of the published information, before finalizing your business plans. Free zones have their own regulations and approval formalities.
The Ownership of your business also varies for different zone types in UAE. For Dubai, a UAE nationalist must be your partner of 51%, known as local “sponsor”. So, you need to have a locally registered LLC business. It helps to locate your business anywhere in the city. In the Memorandum of Association of your proposed company, set out the minimum share capital. In most cases, you need not to pay the minimum share during setting-up. Free zone allows you 100% ownership of your business, speedy start-up and duty-free customs boundary.
For business start-up, hiring a registered agent for Legal Consultancy, is a best option. These consultants will register your company, help opening bank account, arranging auditor, do your renewals, offer nominee services, itemizing potential costs, offering licensing and location options, provide solutions for business hurdles, etc. Free zones have their own restrictions on company structures which are available on their official websites. It might happen, certain offices may allow only one visa for investor only and not for employees. Be careful with the bank charges before opening an account. The trade name should indicate the nature of business and an important part of legal procedure.
Selection of optimize suitability, convenience and cost-effective Location is vital. It must be selected based on the distance, costs, product suitability, business model and trade requirements. For small scale enterprises, the amenities like telecommunication, storage and establishment space are basic concerns.
Though the business Visa application in Dubai is not strict. They allow the foreign investors to invest with the motto, any business is good business. But visa varies based on many criteria’s, like office size, business nature and employee/investor category. For sponsored visa application, apart from passport and other legal documents, a letter from sponsor is required high-lightening his/her or your personal information, reason and likes and employee requirement, if agreed by the sponsor. Always signs for sponsorship with a legal written agreement.
