- Choose a local sponsor, a UAE national for local business startup
You need to get to know the different facts of a start-up in Dubai and prevent the issues you encounter when you start a profitable company in the UAE.
There are plenty of business opportunities available in Dubai, as well as in the other Emirates of UAE. However, if you really want to start a business which must exploit the potential of Dubai then you need a locally registered LLC business.
A UAE national must be considered as a partner of 51 percent who is called a local ‘ sponsor. ‘ A local business gives the liberty to find a business anywhere in the town. This is a boon for a Dubai company startup because it provides the finest selection of places to fit your budget.
A sponsor must be paid a yearly fee which can be negotiated. Do develop a rapport with your sponsor so that he is ready to help you in sorting out any problems you may face along the way with authorities.
- Select a Free Zone if you wish to have a 100% ownership
Keep in mind that the only way to start a company in the UAE is to find your company in one of the Free Zones without having a UAE national acting as your partner. For companies that need to be in city markets such as restaurants and retail shops, this is not practical. It is also necessary to register businesses working with the government with a local sponsor.
Not to mention the fact that purchase or rental in a Free Trade Zone district might be high for your budget to handle.
For a business startup, Free Zones offer three great advantages
- 100% ownership
- Speedy startup
- Duty-Free customs boundary.
- Choose a location that utilizes comfort, cost and suitability
Another significant step in planning a Dubai start-up is to determine the business ‘ most appropriate place. If you’re customers or clients can’t reach you, setting up a profit-based business in the city wouldn’t do you a lot of good despite the increasing economy.
You need to set up your business in an area that is most profitable for your business or most convenient to your business. A location in the right city can be selected for a shop or an office is most known for the type of product or service you are dealing with.
If you’re planning a Free Zone company, you’ll need to create the selection based on distance, cost requirements, and if it suits your product, business model, and trade requirements.
A tenancy contract must be concluded. If you’re aiming to start a small-scale enterprise, then the basic amenities, like telecommunication, storage, and space inside the establishment is the basic concern that must also be satisfied. Other services available in the commercial property can vary greatly.
- Confirm the eligibility and requirement for your visa
For a business startup in the UAE, a visa permitting you and employees to live in UAE is essential to run your business.
Visas are allowed for almost all businesses.
Their number, however, differs depending on a range of requirements such as office size, business nature, worker or investor category.
If your business startup in Dubai is a local company then you definitely need to work with your sponsor to get your visas – at least the first time.
Application for business visas in Dubai is not as rigorous as most would believe since the bureaucracy is quite open to foreign investors planning to set up a store in the city — the slogan here is any business is good business
However, you need to have your sponsor apply a visa for you as the investor of your business startup.
Aside from your passport and other legal requirements, a letter is also needed from your sponsor to highlight his or her, or your personal information, the reason for the visa application, and the likes before processing.
- Hire a registration agent to take you through the process of business startup
Hiring a business advisory firm to register your business startup may be your best option.
These consultants will not only hold your hand right through the setup process but will also actually register the company for you. And will help with opening your bank account, arrange for an auditor, do your renewals and offer you nominee services.
You may find their expertise in dealing with the local government bureaucracy and with Free Zone Authorities to be of great help in planning and itemize your business startup costs.