All the talk of setting up a business in Dubai or even the UAE as a whole can leave even the most experienced of companies wondering where to go next and the inevitable questions of what about all the restrictions that maybe imposed on foreign entities entering the market. Many questions are raised and speculation for foreign companies operating in the region. Here are some of the reasons why you should start a new business setup in Dubai.
Whilst Dubai has all the attractions of its location on the edge of the East and these potential markets can be explored, for those considering operating a gateway hub for import and exports. Whilst this is the most obvious reason to consider the region, Dubai is also a melting pot of cultures needing every type of business from consultancies to manufacturing and with the enviable record of being one of the safest cities in the world this has rapidly become an attraction for families and renowned schools to settle here. Dubai is not just a working city for those seeking secondment, it has developed whole communities which has seen foreigners invest in the housing as well as business markets. This vision and dream of making Dubai at the forefront for business and tourism industry has been realised by Sheikh Mohammed bin al Maktoum ruler of Dubai and his father, constructing ground breaking and diverse buildings such as the Burj Khalifa which has instantly made the Dubai skyline globally recognisable over the last decade.
Inviting countries to showcase their trades in exhibition centres to promote business within the region throughout the year and Dubai successfully won the bid to launch and host Expo 2020/21 giving global businesses 6 months to showcase their trades in their own purpose build business district. It is a great opportunity for all industries to position themselves at this crossroads to the world and a very good reason to embark on a new business setup in Dubai.
With the combination of attractive work packages and high quality of family life it has become a fast growing hub in many different areas not just import/export.
Anyone Considering Setting up A Business in Dubai Should Consider The Following Initial Steps:
- Business Setup company in Dubai
- Location of the business setup in Dubai
- Licence type and business activity
- Costing – Budget
- Business Plan
Finding the right Business Setup company in Dubai And Pro Services in Dubai to assist in your company setup is probably the single most important factor in completing the setup to success. These companies will liaise between yourself and the Government Entities which need to be physically attended. Whilst Dubai uses the latest in online services and portals as with any other techno savvy country, there is still a need to attend Government Offices and these companies also known as PRO companies will be essential to getting the new business setup in Dubai, completed in an efficient and usually cost effective approach. They will complete the online processes as well as represent the company in the Government Entities in a official capacity.
Location of your business set up in Dubai is crucial as you will need to consider where your client base is likely to be. If you are targeting all businesses in every Emirate then mainland/onshore is going to be the preferred choice as this type of location and licencing will cover the whole of the UAE including the Free Zone Authorities. If you need Free Zone which are pockets of selected trading areas set within the Mainland of the Emirates which allow trade with companies placed within that Zone itself and overseas so if a hub type business is required then Zones are ideal – if you want to trade with onshore/mainland with a Zone licence you will need to check with the selected Zone Authority if this is possible. The business setup company will advise.
Licence type and activity are obviously paramount in the Setting up Business in Dubai or any Emirate. The activity of your business determines the type of structure your licence will hold. Service based industries will be professional category licences whereby fully owned by an individual or could be classed as a Branch of the overseas company. Professional category licences are just supported by a Local Emirati as a local agent and there is no involvement in the company or share ownership whether that is Zone or mainland licencing. Recent changes to the commercial licencing laws now gives 100% ownership to Professional and LLC category companies in certain fields of activity and ownership.
If you wish to trade goods and have a tangible product then this will be Limited Liability Company (LLC) and a percentage share structure if more than one partner. If you are a foreign company owning the LLC or individual you can now own your company fully 100% without an associated local share partner. There are some activities which still require an associated local partner but your business setup company will advise if this is necessary.
Approaching various recommended set up companies is advised to consider all the services provided and the cost of such services. If a budget and costing is a major factor in the setup finding and comparing costs for a low cost business setup in Dubai, you can cost compare many set up companies professional fees but note that costs will vary between the types of licences and your chosen location. Free Zones can seem the low cost business set up option but the office locations have to be in the actual Free Zone and the commercial space is controlled by how many employees you might need in the office so this is regulated. Onshore/mainland licencing can seem the more expensive depending on the activity but the office space is more competitively priced as more availability as a larger commercial real estate market and no restriction on employee capacity. So finding the low cost business setup in Dubai will depend on the nature of your business and your location but taking into consideration your targeted business market.
Finally to help you consider all options on the costing side of the Business Setup Company in Dubai a Business Plan can assist in the setup costs, employment costs, office rental costs all the overheads that can be accrued yearly but more importantly the renewal costs of the licences, employment/work permits and office rental – year on year forecast is advisable from the outset and most reputable business setup companies in Dubai should know these fees even if approximate.