Business Setup in Dubai and UAE: Stepping Stone towards Success
Dubai is known for its business-friendly substructure and services. In Dubai, company registration is the first priority by an organization while setting up a business in Dubai. The formation of a company in Dubai is a very tedious task. There are many business setup consultants in Dubai to make this task easier.
Business setup process in Dubai and UAE
As per the jurisdiction of the Dubai government, the Department of Economic Development (DED) is a commercial nucleus.
In March 1992, the inception of DED took place with the chief intention of organizing & regulating the industry and trade in the Emirate of Dubai. It is accountable for the business setup in Dubai.
If you are thoughtful of setting up business in Dubai, you need to appoint a UAE domestic as a native sponsor for your business. This native sponsor won’t have any involvement in the business operation or revenue sharing in Dubai.
After getting a professional license and 100% ownership, the need of a native service agent is still there. But for a professional corporation, a native service agent has no dynamic engrossment in company commercial management, profit sharing, and operations.
They play a vital role while enlisting legal agreement and forming other business documentation prerequisites in Dubai.
Requirements for Dubai Business setup
While setting up a business in Dubai, a verified organization address is taken from the Dubai Municipality. The requirement of office space while setting up a business in Dubai depends upon the category of license. It is a stakeholder’s responsibility to guarantee a valid rental contract for an office.
There are a few important steps to be kept in observance while setting up a business in Dubai. The main steps involved in a company formation in Dubai are:
- Selection of business activity
- Approval of name
- Native partner selection and a service agent to sell products
- Preparation of notarization through the court and MOA
- Getting a space for office and making a rental contract
- Final document submission for formation of a company
Industrial License setup in Dubai
Dubai Department of economic development (DED) is the governing body that issues Industrial License. Industrial license gets its approval from the Dubai municipality. The industrial license is given for the companies where a modification of natural resources or transformation of raw material takes place. This modification is either a change in appearance or structure. This alteration is achieved by manually segregating, by mechanical means, assembling, filling or packing products.
While setting up a company with an industrial license, there should be a local sponsor having 51% shares and an investor with foreign nationality having 49% shares.