Business startups have always been encouraged in Dubai. With the passage of time, Dubai has grown to become a global business hub owing to all the foreign investments that have poured in. However, before taking such a step, there is a need for you to acquire insight into certain facts associated with business startups in Dubai.
Here’s a look into a few do’s and don’ts that should be given due attention before setting up a business in Dubai:
Do’s of setting up a business in Dubai
Here’s a look into a few things that you must do when establishing your business in the UAE:
Select a local sponsor
Dubai presents several business opportunities to foreign investors including that of a locally registered LLC business. This option will allow you to locate your business anywhere across Dubai. However, for this, it is necessary for you to have a UAE national as a 51% partner or ‘sponsor’. Remember, you will have to pay a yearly fee to the sponsor.
For 100% ownership, select a free zone
If you do not wish to work with a local sponsor, then it is best for you to establish your business in a free zone. Doing so will make it possible for you to retain 100% ownership of the company. However, you need to bear in mind the fact that purchasing or renting a premises within the free trade zone district can be very expensive.
Choose a suitable and convenient location
When setting up a business, make sure that you first determine a suitable location for it in Dubai. If anything, your business must be set up in a location that guarantees maximum returns in terms of profits and convenience. If you wish to set up a shop or an office that sells well-known products or services, then a location right in the city will work best for you. However, for free zone companies, the selection should be based completely upon the costs involved, distance and whether it suits your product and business model.
Don’ts of setting up a business in Dubai
Here’s a look into the elements that you should avoid when establishing your business in the UAE:
Do not use published information along to plan
Before finalizing your plans, it is best for you to get in touch with a business set up consultant and confirm any assumptions that you have made. Do not finalize your plans without confirming the validity of the information that you have acquired. Remember, rules continue to change and if this is something that you need help with, then visit website right away.
Make sure that you choose the right license category
Choosing the right license category is important as you need to make sure that you don’t select one that is too narrow. Allow room for changes and choose a broader category.