3 DOâS AND DONâTS FOR STARTUPS IN DUBAI
Being the most perfect place in the world for initiating startups makes UAE the business hub and the most fertile one too. That is why both startups and foreign investors are able to perform well here. What makes Dubai the perfect spot for business is the availability of free zones, supplies, workforce, etc. But you should face certain challenges to start a business in a foreign country like company registration, license, staff hiring, etc. Understanding this we have come up with a list of do’s and don’ts.
Do’s for starting a business in Dubai
Evaluate all the options
First of all, you should select where to start your business as Dubai has multiple company formation structures like the free zones, mainland and offshore with each having its advantages and disadvantages (Geographical restrictions, ownership limitations). After considering all options, later plan accordingly. Starting a business in the freezone gives you 3 advantages like 100% ownership of your company, speedy startup and the duty-free customs boundary.
Getting a local sponsorship
There is slight variation in registration and licensing in business. The most beneficial setup will be to form a locally registered limited liability company (LLC) setup. Having a local sponsor with a 51% ownership in your company and is a UAE National will be required. Having a reliable local sponsor is very vital.
Careful selection of business license
The three types of business licenses available in Dubai are professional, commercial and industrial. As each license requires a different set of documents and fees before planning your business make sure that you choose the license permitting your activities.
Don’ts for starting a business in Dubai
Not carrying the business registration by yourself
If you are trying to save some money by registering yourself then there are certain areas which you cannot handle as a foreign investor. Don’t take the hassles by yourself, let yourself some peace of mind and allow a business setup consultant like UBL to handle everything on the registration process.
Without funds don’t setup a business
Only having enough funds does one will be able to conduct a business in the UAE. If you can’t pay for your startup costs then you shouldn’t be thinking about starting a business in Dubai.
Don’t fail in getting the investor visa
According to the business you have chosen you will require an investor visa. The UAE offers friendly government policies to the foreign investors which makes the business visa easily available to you. Ensure that you have all the documents required.
