It is one of the highest increasing economies in the world; Dubai is the ideal place for expats searching to move on in their careers. The incomparable opportunity to raise one’s prospects together with the probable to earn well; is what draws nearly all of the expats to Dubai in search to open new company in Dubai.
Open new company in Dubai is the key to Dubai future development; but licensing as well as registration is composite and also requires a considerable amount of setup capital. So you require taking an expert advice to initiate smoothly. Dubai offers a working environment to expat people; which are among the most broadminded and gorgeous in the Middle East region.
So how does one go regarding rotating a good business idea into a productive and viable business?
Before jumping in to Open new company in Dubai; we recommend look at three main components which will influence the profitability of your startup.
Know your business to open new company in Dubai
Yes you may have a good idea regarding your business; but is there a suitable demand for what you are offering? What does your competition seems; and what puts your manufactured goods and services a mark above the others?
The success to open new company in Dubai relaying on sound knowledge of the local market; detail study of the capacity as well as demand for your product or service; and a realistic business plan that is probable to attract investment partners.
Early research of the market is very significant for each successful business; our team of consultants will assist you in understanding of the market. Primary research also includes spending some money on publicity; to catch the demand for your product is likely to save your thousands of dollars in future. Discover the market for your product by using Google; Twitter and other sources of social media to request people their opinions. You will be surprise at the response you acquire from this channel. A small amount of money spent upfront can save you big bucks down the line.
Find a good local partner to open new company in Dubai
Open new company in Dubai need a local sponsor; just make a call to a local partner who will hold the majority 51% of share in your company; thus he can therefore, potentially manage it. Local sponsor might be an individual or it can be a company; and they will not make payment financially to form or run the company. There are a number of ways in that you can pay to a local sponsor; it is vital to set the thing before to open new company in Dubai.
Financial viability for new business setup in Dubai
Once your new business setup in Dubai gets completed, the Ministry of Commerce will demand the owners to show evidence of financial investment. If you are fresh to Dubai market and don’t have any track record; you should be ready to discover your own financial assets through your bank; or by other means rather than relying on local support.
Once you have setup the legality of your idea, from a market point of view as well as financial feasibility; then you can gaze at the steps for spinning your idea into a successful business.
UAE Commercial Companies Law as well as Federal Law defines seven basic categories for new business system in Dubai. The requirements for smallest amount capital levels, also shareholders; as well as measures for business setup will depend with the type of business structure.
New company formation in Dubai as a Professional Firms
If you are planning to form a professional company that involves in professional or skillful activity; then gov’t of Dubai permit 100% ownership to expat individual; but the number of staff that can be hire is restricted. A local service agent (LSA) who is a UAE national is requires to obtain the license; and to help in obtaining employee visas and labor as well as immigration cards. LSA has no direct relation in the business.
The Dubai gov’t has set up free trade zones to increase the opening of new company in Dubai; new company set up in Dubai free zones have a separate structure; and are treated as offshore companies for legal purposes. These firms are fit to business; which would like to use Dubai as a local base for manufacturing as well as delivery; but with the most of their business perform outside the UAE.
Open new company in Dubai Free zone has a number of separate incentives including 100% overseas ownership; the capability to send back all of their income as well as earnings to home country; exclusion from import duties, no corporate tax; also an easy and quick recruitment process; and an efficient executive care from the free zone authorities too.
New LLC Company opening in Dubai
LLC Company formation in Dubai is the most common structure for new company setup. LLC Company can have a least amount of 2 or as many as 50 shareholders; whose responsibility in the company is limited to their share in the company. A local sponsor with a 51% of share is essential to form a new company; so expat partner will enjoy only up to 49%. In Dubai, the important thing is that a lowest amount capital investment is not requires; to be shown for the New LLC Company opening in Dubai. These are some stages that need to keep an eye on for the set-up process:
Procedure to open new company in Dubai
Process for starting a new company in Dubai start with select a name for your Company; which tie to the type of business and have it approved by the Licensing Department of the DED.
Prepare a MOA that is a document which runs the outdoor activities of the company. The MoA needs to be notarized by a Notary Public in a Dubai court. Once MOA is sign and notarize; then submit an application for entry into the Commercial register at the Economic Development Department.
Once DED endorse your documents they will issue a license; and the company name will be entering into the Commercial Register. The MOA will be publishing in the Ministry of Economy and Commerce’s Bulletin.
The final stage in the process to open new company in Dubai; is to register the company with the Dubai Chamber of Commerce and Industry.