How can I start my own business in Dubai?
- Post by: Public
- on: 08-03-22
Dubai is the best place you can start
a business right now. Whether it is an offshore company setup, mainland company
setup, or free zone company setup will depend on the type of business you want
to start. Whatever the choice is, business setup in Dubai is
comparatively easier than in other countries in the world. The availability of
Company Setup consultants makes the process a walk in the park.
It is also possible to start a
business on your own without the help of any business consultants. However, it
is recommended that you only attempt it yourself if you have previous experience
with startups. If you are a foreigner then the new processes may be a little
intimidating at first, but you will get a hang of it in no time.
While business consultants do charge
you for their services when opening a business through them. You will end up
losing more money if you do not know what you are doing. Any incorrect steps in
the company formation process will cause some expensive setbacks for you. That
is why it is suggested that you take help from the experts who have
incorporated hundreds of companies in Dubai. However, if you are a seasoned
entrepreneur and want to take on the challenge by yourself, then here is how
you can start your own business in Dubai.
Economic Zones or Jurisdictions in the UAE
Dubai and the rest of the emirates in
the UAE have three types of Economic Zones. When starting out you need to
select which of these jurisdictions will be the best for your business and you
have to go with that. The company formation process will also depend on the
economic zone you choose.
Here are brief overviews of the
economic zones so that you can decide which one will be the best for your
business:
·
Mainland Businesses
Mainland
Dubai is the general area of Dubai that is not covered by any of the free
zones. The biggest difference between the free zones and the mainland is that
when you open a business in the mainland, you can sell your goods and services
anywhere you want. That means you are free to take lucrative government and
private contracts. You are free to sell your products and conduct your business
activities legally in a broader geographical area. The mainland is also
flexible in terms of the business activities you can perform here.
You can get
benefits like 100% exemption from taxes, 100% repatriation of capital and
profits, 100% ownership of businesses, etc. Previously, the mainland did not
allow foreigners to have 100% ownership of businesses. They could only own 49%
of any business on the mainland. The rest 51% had to be owed by a citizen of
the UAE. However, now anyone can own 100% of a business in the majority of the
sectors on the mainland. Sectors that are strategically important to the
government of the UAE still do not allow 100% ownership to foreigners. These
sectors include the oil and gas industry, transportation, weapons manufacture,
etc.
·
Free Zone Businesses
Free zones are specific areas that
facilitate businesses in a certain sector or sectors that are closely related
to one another. For example, Dubai Healthcare City is a free zone that caters
to businesses in the healthcare sector. Healthcare professionals will find more
benefits when setting up their company in these healthcare-related free zones
than in the mainland.
However, when you select a free zone
as the location of your business, you can only perform your business activities
within that free zone. If you have manufacturing business in a free zone, then
you can export your products or sell them within the free zone. The rest of the
UAE will be off-limits to you unless you agree to sell through a licensed
agent. So, when setting up your startup, take these factors about the mainland
and the free zones into consideration.
·
Offshore Companies
The offshore company jurisdiction is
mainly for high-net-worth individuals. This is because Dubai offshores protect
the assets and information of businessmen better than any other city in the
world. It is also a tax haven for businesses from all around the world. The
privacy they provide is unparalleled because they do not disclose any
information about individuals to any countries or governments.
Company Formation Process
As we have mentioned before, the
company formation process will depend on the economic zone you choose for your
business. Here are the common steps you can expect in the company formation
process of the free zones and the mainland:
·
Business Activities
The first step is to determine the
business activities that you are going to perform through your company. The
business activities need to be legal in the UAE. The business activities you
choose will determine the business trade license you need to apply for. The
types of trade licenses available for you will depend on the economic zone as
well. The most common types of trade licenses are the commercial trade license,
industrial trade license, and professional trade license.
·
Business Structure
Again, the types of legal structure
that will be available for you will depend on the economic zone you select for
your business. Different free zones provide different options so take your time
to research if the structure you have in mind is allowed in the economic zone
of your choice or not. Some of the most popular business structures are Sole
Proprietorship, Public Shareholding Company, Private Shareholding Company,
Limited Liability Company, etc.
·
Business Name
You need to register a trading name
for your business. The trade name you have in mind needs to be unique in the
UAE. It can be in use in other countries in the world, as long as it is available
in the UAE, you can go for it.
Company Setup
If you are
planning to get started in Dubai, then the Company Setup experts are always
ready to guide you and help you through all the steps in the process regardless
of the economic zone you choose.
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