- April 29, 2017
- Posted by: DBS
- Category: Dubai Business Services
How to set up a small business Dubai?
One of the fastest growing economies in the world is Dubai. More and more people are inclined towards starting their business and companies in Dubai and UAE. It is booming with plenty of opportunities in all sectors, especially for businesses. If you think you have potential business ideas for small businesses, then Dubai and the free zones of UAE would be the perfect place to set up.
To beat the competition and build your establishment successfully, you need to look into a few basic components. It will not only help you launch the business efficiently but also have a positive impact on the profitability.
- Before starting your business, look for a local business partner
If you want to set up your business in UAE outside the free zones, then you will most likely require a local partner who will have the majority interest in your business. Local partners are not allowed to contribute to your startup company financially. You can choose an individual or a company as well, as your local partner.
- Having the sufficient financial viability is important
For setting up your business in Dubai, you need to register your business and have evidence of your financial investment. Having financial viability is imperative. Therefore, the Ministry of Commerce will require you to show proof of your financial investments. Get in touch with your bank and use your own financial resources for proving your credibility. This is done in order to prove that your small business idea is potential enough for being successful. In Dubai and UAE, the UAE Commercial Companies Law and Federal Law categorizes different categories of business into seven sections. Therefore, before setting up your business, check which category your business falls into and collect intel on the minimum capital levels and shareholders required.
- LLC companies
More often than not, small business setups adopt the structure of Limited Liability Company. The share investors who are liable to the company can be of any number. In Dubai, AED 300,000 (US$ 82,000) is the minimum amount of capital investment, which must be shown before launching the LLC On the Memorandum Agreement and is not required to be deposited or shown.
If you are seeking to set up your small business in any of the Free Zones in UAE, then you can opt for the two largest free zones, which are the Dubai Airport Free Zone, and Jebel Ali Free Zone. Besides that, there are many other free zones in UAE, which are apt places for startup businesses and companies.