Setting up a business in Dubai is not as tough as it may seem initially. It takes time to get set-up and there are several formalities that one should go through before being allowed to set up a trade. Dubai authorities provide all these formalities and the process has been simplified by the government to make things easier for foreign investors. If you are a foreign investor, take into consideration all these formalities and proceed with care.
Determine if your proposed business needs to be registered with Dubai authorities. This is an important point for those intending to set up a business in Dubai or wish to invest in a business in Dubai. It is vital that you find out your business’ legal status and comply with all regulations of the country where you intend to operate your business. Find out if you need a business license and what is the minimum capital requirement. Decide on the type of company you wish to set up – sole proprietorship, partnership, limited liability company (LLC) and limited partnership. Designate management of your business.
Obtain permits from the Dubai Government and follow all regulations for the location of your office and for running your business. In order to encourage entrepreneurship and discourage dependency on other countries, the emirate allows free zones where businesses are allowed to operate on a daily basis without being burdened with onerous licensing conditions. These free zones are designated for certain categories of entrepreneurs including skilled workers and unemployed people. If you belong to any of these categories and want to establish a new pro services business in Dubai, you have to register it in free zones.
When you are ready to get started with the process of setting up a business in Dubai, you need to collect all relevant documents and apply for the necessary licenses. These documents include a complete set of business licenses from the concerned authorities in the respective areas of business you wish to conduct. A typical document checklist includes tax returns, legal reports, business plans, land ownership certificates, lease agreements, and others. Upon submitting these documents to the concerned authorities in the free zones, you will be required to undergo training for handling business transactions.
Not only must entrepreneurs in Dubai understand how to operate their companies, they must also be aware of their rights. They are entitled to be paid their due salaries and benefits packages. They may not be discriminated against based on race, religion, or origin. They are also allowed to freely choose which job they wish to take as well as decide on the type of working contract they would like to enter.
Just like in other countries, entrepreneurs in Dubai need to have their personal and business credentials in order to finalize their arrangements for office space. For this purpose, they will be required to submit their written proposal as well as relevant documents related to their businesses. This can be done either in person or through the internet.
Once again, when setting up a business in Dubai, it is vital that you keep in mind that the free zones are not suitable for new businesses. Entrepreneurs must apply for a license before they start making contracts. This is essential so that they can carry on business without any legal hassles. Once granted the license, the business owner will still be required to submit their annual income tax returns. He or she may also have to submit copies of their visa documents. However, most of these requirements are necessary as the emirate is an area with different laws for different sectors.
On top of all these requirements, a foreign investor visa is also required when setting up a business in Dubai because this is needed for any company formation. However, a company formation does not necessarily mean that the entrepreneur will not need a license because, after the registration, a copy of the license is required to be presented to the government authorities for approval. The business owner will need to submit his application to the Dubai National Commercial Information Agency (NCIC) or the High Employment Commission of the UAE before he can apply for a license.
