As one of the fastest growing economies in the world; Dubai is the perfect place for expats looking to advance in their careers. The matchless opportunity to grow one’s prospects together with the likely to earn well; is what draws most of the expats to Dubai in search of new company opening in Dubai.
New company opening in Dubai is the key to Dubai future growth; but licensing and registration is complex and also requires a substantial amount of setup capital. So you need to take an expert advice to start smoothly. Dubai offers an operating environment to expat people; that are amongst the most liberal and attractive in the Middle East region.
So how does one go about turning a good business idea into a productive, viable business?
Before jumping in to new company opening in Dubai, we recommend looking at three major components that will affect the profitability of your startup.
Know your business for new company opening in Dubai
Yes you have a great idea about your business; but is there a proper demand for what you are offering? What does your competition look like; and what puts your product and services a mark above the others?
The success of a new company opening in Dubai depends on sound information of the local market; detail research of the capability and demand for your product or service; and a credible business plan that is likely to attract investment partners.
Initial research of the market is very important for every successful business; our team of consultant will help you in understanding of the market. Initial research also include spending some money on advertising; to find out the demand for your product is likely to save you thousands of dollars in the future. Find the market for your product by using Google; Twitter and other social media to ask people their opinions. You will be amaze at the response you get from this channel. A little money spent upfront can save you big bucks down the line.
Find a good local partner for new company opening in Dubai
New company opening in Dubai require a local sponsor; simply call a local partner who will hold the majority 51% of share in your company; so he can therefore, potentially control it. Local sponsor can be an individual or it can be a company; and they will not contribute financially to setup or run the company. There are a number of ways in which a local sponsor can be paid; it is important to set the thing before new company opening in Dubai
Financial viability for new business setup in Dubai
Once your business setup in Dubai is done, the Ministry of Commerce will want the owners to show proof of financial investment. If you are new to Dubai market and have no track record, you must be ready to find your own financial assets through your bank; or by other means rather than depend on on local support.
Once you have setup the validity of your idea, from a market point of view as well as financial viability; then you can look at the steps for spinning your idea into a successful business.
UAE Commercial Companies Law and Federal Law define seven basic categories for new business setup in Dubai. The requirements for minimum capital levels, also shareholders; as well as procedures for business setup will vary with the type of business structure.
New company formation in Dubai as a Professional Firms
If you want to set up a professional company that involves in professional or skillful activity; then gov’t of Dubai allow 100% ownership to expat person; but the number of staff that can be hire is limited. A local service agent (LSA) who is a UAE national is requires to get the license; and to assist in obtaining employee visas, labor and immigration cards. LSA has no direct connection in the business.
The Dubai gov’t has set up free trade zones to boost new company formation in Dubai; new company formation in Dubai free zones have a separate legal structure and are treated as offshore companies for legal purposes. These firms are best fit to business want to use Dubai as a local base for manufacturing as well as distribution; but with the majority of their business conduct outside the UAE.
New company formation in Dubai Free zone has several separate incentives including 100% foreign ownership; the ability to send back all of their income as well as profits to home country; exemption from import duties, no corporate tax; also an easy and speedy recruitment process; and also an efficient executive care from the free zone authorities.
New LLC Company opening in Dubai
LLC Company is the most commonly use structure for New LLC Company opening in Dubai region. LLC Company can have a minimum of 2 or as many as 50 shareholders; whose liability in the company is limited to their share in the company. A local sponsor with a 51% of share is requires to form a new company; so expat partner will hold only up to 49%. In Dubai, the important thing is that a minimum capital investment is not requires; to be shown for the New LLC Company opening in Dubai. These are some steps which need to keep an eye on for the set-up process:
Procedure for opening a new company in Dubai
Procedure for opening a new company in Dubai start with choose a name for your Company; that link to the type of business and have it approved by the Licensing Department of the DED.
Prepare a MOA which is a document that runs the external activities of the company. The MoA needs to be notarized by a Notary Public in a Dubai court. Once MOA is sign and notarize; then apply for entry into the Commercial register at the Economic Development Department.
Once DED approve your documents they will issue a license; and the company name will be entering into the Commercial Register. The MOA will be publishing in the Ministry of Economy and Commerce’s Bulletin.
The final step in the Procedure for opening a new company in Dubai is to register the company with the Dubai Chamber of Commerce and Industry.