Know the essentials before doing business in Dubai
Dubai is a land of dreams and has attracted several businessmen over the years. The commercial hub, the diversified business module and the extensive boost given by the government to the foreign entrepreneurs has made the city of Dubai – one of the most optimistic economic prospect of the world.
Dubai offers favourable business conditions, buoyant client demand, immense business development options, competitive pricing strategies, unparalleled business outlook and so much more. With an objective to make the most out of these attributes, entrepreneurs come to this region with outstanding business ideas however what they lack is the essential procedural approaches as well as they are unaware of the basic process of business setup in Dubai.
Thus, before extravagating over your business idea it is very important to know how to setup a business in Dubai. The Middle East has always been the most popular location for targeting of new market. Nevertheless, no matter how easy the market provides the business outlook or the government supports the dissemination of these business entities – starting a business in a foreign country with international competitors and new-fangled laws can be challenging.
So how to setup a business in Dubai?
Let us check out some of the significant pointers, of which foreign investors are usually oblivious of, and being negligible about these attributes could lead to a perilous business venture.
Understanding the Market
The nature of your business specifically describes the business market segmentation – there are two types of market that you need to cater in Dubai. First – the business market will define the competitors, business limits and restriction in the present market and the orientation and objectives of your business. Second – the consumer market and your target customers that specifies the business decisions, the structure of the business and more. Dubai is a commercial hub of United Arab Emirates, embracing moderation and global cultural trends – still it is an Islamic country and the commercial market also has an impact due to this, thus it is essential to know whether your business idea fits in the given zone.
Research and Planning
Understanding the market is a part of research, yet researching and planning is a wide subject and involves much more than just the market. A significant aspect of research comprises through knowledge about your business idea, perceptive about the market, the commercial laws of the country, business outlook and trends, etc. With the change in the currency and foreign values, adequate planning helps in estimating the capital and cost of the venture as well.
Mainland or Freezone or an Offshore
Company formation in Dubai, is done mainly under three jurisdictions Dubai mainland company formation, business setup in Dubai freezone or an offshore company formation. Edifying about every jurisdiction and making a decision accordingly is the most important thing that will the business in long-run. Every jurisdiction has its own advantages and is been defined by law and regulations denoted by the Dubai Economic Development (DED) and the Dubai Government.
Licensing and Registration
Licensing is an indispensable legal factor of setting up a business in Dubai. There are various licenses that the Dubai Government offers based on the business executed, the jurisdiction the company is setup and the company structure. Every license is permitted specific activities and is restricted by a set of regulations, thus it is vital to considerate which licenses serve your business.
Local Partner or Local Service Agent
In Dubai, as per the Companies Commercial Law – every business entity is compelled to have a business partner or a local service agent, this depends on business, the jurisdiction and the layout of the company.
Renting/ Leasing commercial space
It is mandatory for a foreign investor to have an office space or an office desk. Earlier the Dubai government has limitations on leasing and renting a property for a smaller period, but which time and advancement – there are areas where in foreign investors can rent an office space for over 25 years. Also free zones in Dubai, have their independent decrees through which renting and leasing take place.
Budgeting and costing
Calculating the cost of the business and planning accordingly is be a boon. Although the initial set-up costs can be lower, there several influences involved – such as getting permissions and certificates make be expensive, transactional costs associated with visas and permits, monthly bills and maintenance costs, human resources cost and other requirements according to your business setup can articulate the expense.
Therefore, get ready with your checklist and distinguish if you have marked in all the attributes before considering to setup a business in Dubai. To know the legal structure, go through the basic guide on how to setup a business in Dubai. So whether it is a multinational enterprise or if you are thinking of SME sector in Dubai let Shuraa be your guiding light.
With Shuraa Business Setup, you can concentrate on your business idea while we will take care of all the governmental procedures and formalities related to it, in the most cost-effective and easy way.