Dos & Don’ts for Startups in Dubai
It is not a secret that UAE is one of the most fertile grounds in the world for starting a business. Startups and foreign investors are always welcomed and encouraged in the UAE. Being a global cosmopolitan as well as entrepreneur-friendly city, Dubai has renowned as one of the leading business hubs worldwide.
The government offers robust business infrastructure with lower tax regimes. In addition, availability of free zones, materials, supplies, workforce, and intellectual property makes Dubai a desirable destination for businesspersons. No wonder why, an increasing number of entrepreneurs look up to Dubai and consider the place as top option for company setup in the UAE.
Yet, company formation in a foreign land comes with its own set of challenges. You may not be aware of the formalities – company registration, obtaining a license, hiring staff are some of the hurdles involved. Being an expert UAE business setup consultant, we understand your worries. Hence, we have come up with a list of some common dos and don’ts before doing business in Dubai.
Dos for startups in Dubai
Go through all the options
UAE offers multiple company formation structures also called as legal structures – such as like free zones, mainland and offshores. Each option comes with its own set of pros and cons. Some formation may fit you more than other because the kind of geographical restrictions, visa constraint and ownership limitation that each legal structure impose. So, go through all the options before considering company setup in Dubai, and plan accordingly.
Get a local sponsor
When it comes to business registration and licensing, rules vary slightly in Dubai. Though there are plenty of opportunities, the most common and beneficial form of business setup in Dubai is a locally registered LLC company formation also known as Limited Liability Company Setup. However, in order to set up a Dubai LLC company, you are required to find a local sponsor – a UAE national who will own 51% shares of your company. This requirement by law gives you liberty to conduct business anywhere in the UAE. Nevertheless, a local sponsor provides 100% control of the company along with the power of attorney. To understand better click here to speak to an expert for Free.
Start a professional company & get 100% ownership
Set up a professional company in Dubai and get 100% ownership of your company. A professional company setup does not only give you the benefits of mainland but also offers complete ownership. Setting up a professional company depends on the nature of your business activity. Speak to a business setup consultant in Dubai for free to get personalised assistance on your queries related to company setup.
Don’ts for startups in Dubai
Don’t handle business registration on your own
You may be tempted to save some money by handling business registration and licensing procedure on your own. However, it is widely advised to seek the partnership of a business consulting firm, like Shuraa to help you out. No doubt that the Dubai Government along with the DED have made the process of starting a business in Dubai easy and swift, but many areas may be complex for you as a foreign entrepreneur. Spare the hassles and attain peace of mind by hiring a consultation for registration process.
Do not choose business license irrationally
Any kind of business activity in the UAE falls in three categories – professional, commercial and industrial. The different types of licenses are dealt with separate authorities, and each requires a different set of supporting documentation and fee. Moreover, not every category may support your business model. Thereby, choose an alternative that allows broader possibilities and all the activities in the business model you are planning to establish. Also remember not to choose a license category that is too narrow.
Don’t fail to get the investor visa
You will require an investor visa mainly depending on the time duration and kind of your business activity. Getting a business visa is not complex in the UAE owing to a friendly government policy to foreign investors. But it is crucial to pay careful attention to legal documents and paperwork for smooth operation for your business once you are in the UAE. Make sure that you thoroughly go through all the documentation required.
To sum it up, Dubai is a cultural melting pot of diverse people from all around the world. The city welcomes all entrepreneurs who are dreaming of setting up a business in the region. So, all the best for your business venture! And if you are looking for more guidance or need consultation? Feel free to book a free appointment with us.