Are you looking to start a business in Dubai? The United Arab Emirates is one of the most attractive destinations for entrepreneurs and investors from around the world. With its strategic location, world-class infrastructure, and business-friendly environment, it is no wonder that many companies are choosing to set up shop in Dubai. But before you can get started, there are some legal requirements that must be met. In this article, we will discuss what you need to know about setting up a business in Dubai. As an entrepreneur or investor looking to establish a business in Dubai, you must first obtain an appropriate operating license from the relevant free zone authority and enter into a lease.
Depending on the free zone, leases of up to 50 years may be available. Additionally, corporate documents must be filed and certain industries may require regulatory approvals. It is also important to understand the intellectual property rights and ensure that you have obtained the rights accordingly. The United Arab Emirates offers many advantages for businesses, such as its strategic location, world-class infrastructure, and business-friendly environment. According to the International Monetary Fund (IMF), the United Arab Emirates is expected to lead economic growth in the Arabian Gulf this year, with an increase of 2.5%.
On the other hand, if you choose to establish yourself on the continent, you can trade directly with local and international markets. However, unless your business activity pertains to professional services, you'll need to work with a local partner who owns 51% of your company's shares. Virtuzone provides companies on the continent with a local nominated corporate shareholder who will act as their local partner. In this way, foreign business owners can retain 100% operational and financial control over their continental company. Once you've completed these steps, you're ready to start trading. Compared to other parts of the world, starting a company in the United Arab Emirates is very simple: it is ranked 16th in the world in the World Bank's latest ease of doing business ranking. When considering how to start a business in Dubai, if you've come this far, you've already made the most important decisions.
Choose an industry; choose a location; choose a company name; complete the paperwork; apply for a license; open a bank account; apply for a visa; and understand etiquette in the United Arab Emirates. In some cases, additional approvals are required from government entities that govern certain business activities. This is a popular method of doing business in the United Arab Emirates in all business sectors, with the exception of banking, insurance and financial investment, which may not be legally conducted by an LLC. Once you've decided on an industry, your next big decision is whether to launch it on the continent or in a free zone. Don't forget that keeping business in the family is a way of life here, so it can also change the dynamics of your relationships with companies as well as the speed and style of your decisions. Annual fees are paid to the appropriate licensing authority to obtain and renew business licenses. Some free zones will require additional documentation such as a business plan or a no-objection certificate (NOC), a letter from a current sponsor confirming that you can set up another business in the United Arab Emirates. Next, a memorandum of association must be prepared in accordance with the provisions and requirements set out in the CCL and signed before a notary public of the courts of the United Arab Emirates.
Starting a business on an ordinary basis requires a series of steps, procedures and approvals from the Department of Economics and other government entities. As long as the application is in order and all necessary fees have been paid, the relevant Emirates business licensing department will enter the LLC into its Mercantile Registry database and issue a license to operate. However, you must identify the type of business entity you plan to establish; your planned business activity; and jurisdiction where you will operate. The Abu Dhabi Business Center offers investors an instant licensing service to start their businesses online and obtain a business license without having to visit its service center.