From a collection of trading communities for fishing and pearls, Dubai has transformed into an exciting trading destination that has everything going in its favour – an attractive lifestyle destination, a high resident talent pool, business-friendly policies and a supportive government.
Dubai offers plenty of opportunities for investors and companies, and starting a business does not take much time once you complete all the legal formalities. But the initial phase of formation planning can have a long-term impact on your company’s success. This is why you need to plan for the following factors to avoid the problems that you might encounter while incorporating a business setup in Dubai.
Determine the type of business
Your type of business determines the type of license you’ll require, whether they’re commercial, professional or industrial. Dubai’s Department of Economic Development (DED) has a list of 2100 activities you can choose from. Alternatively, you can also take a look at a list of Free Zones in Dubai.
Decide the degree of ownership
Foreign nationals who want 100% ownership of their company should incorporate their business at one of the many Free Zones in Dubai. If your company needs to operate locally, you’ll also require the license from the Department of Economic Development, which restricts the share of ownership for foreigners.
Review the available infrastructure
While Free Zones in Dubai offer a wide range of offices, infrastructure and facilities, the actual availability may be subject to change. Avoid last-minute surprises that can throw your budget into disarray – proceed with company registration only after all aspects of the office, infrastructure, benefits and facilities are confirmed.
Insist on written sponsorship agreements
Foreign investors planning to set up a business in Dubai require a local sponsor, a UAE national, for initial support. Depending on the type of support, you may be required to pay them different fee amounts. Do not proceed with sponsorship until both parties agree to an explicit, written agreement that has been attested by the local authorities.
Take the help of an expert
If you’re new to business setup in Dubai, it’s important to take the help of a trusted agent who will help you navigate the restrictions and ease the burden of formalities for company setup. Hiring a registered agent like WorldWide Formations to take charge of your company formation is the easiest way to start a business in Dubai. Our experts provide full-fledged services that enable you to successfully navigate your company’s formation through its initial phase and beyond.