- December 3, 2018
- Posted by: DBS
- Category: Dubai Business Services
Dubai offers a great opportunity for people looking to do business. Its perks include 0% tax on personal and corporate income, a booming economy, and some of the best infrastructure that the world has to offer. Moreover, Dubai’s laws are conducive to investment and offer a great return on investment as well. If you’re interested in starting a business in Dubai, here are the factors you need to look for and take note of:
Find a Local Sponsor or a Corporate Sponsorship
The UAE generally does not allow foreign investors to form their own company, whether an LLC or otherwise. You need to find a local sponsor to enter into a partnership with if you want to do business in the UAE. The local sponsor can be a local company or any other person. Moreover, the local shareholders need to hold 51% of the total stake of the company if the Memorandum of Association is to be approved and the company subsequently registered and can act as sleeping partner for an agreed annual sponsorship fee.
Go for Duty-Free Zones for Full Ownership
If you don’t want to enter into a partnership with someone from the local populace, Dubai offers free zones to build your company duty-free. In such zones, your ownership stake is 100% and no partnership is required. Furthermore, the process for a place in the free zones is very quick and allows you to get your company up and running in next to no time.
However, there is a catch to these duty-free zones. The main catch happens to be the fact that you cannot choose the place and space on your own. You are generally given options to select from, making it absolutely crucial for you to get yourself a deal that reflects your aspirations and those of your company as well. Make sure to check all the boxes and take care of all the details when going for a free zone.
Make Sure to Pick the Right Location
As much as Dubai offers, not all places are the best to run a business at. You need to take a look at the conditions, the rent, the infrastructure, and more while looking for the ideal location for your business.
Get All the Paperwork in Order
To have your company registered, you need to comply with all the necessary requirements of Dubai’s Economy Department. This includes having your Visa in order along with the eligibility terms and conditions. Moreover, you also need to hand over all the necessary information related to your business. If anything is out of order, you might face a problem with your attaining your license. Comply with the authorities and the lawfully.
To help deal with all this, it’s advised to get yourself an agent who is experienced with the local laws and has worked with foreign investors before. An agent will help you sort out the documents and will keep you in check in accordance with the laws while you go about setting up your company.