The growing economy of the Middle East especially the major business centres in Dubai has been attracting more and more investors especially those from the other countries. Aside from the thriving economy, the city offers very viable business opportunities compared to other parts of the globe.
For those interested in setting up business in Dubai, this guide may come in handy.
Licensing
The first important lesson that any expat should remember is to know the legal implications of the whole business process from the start of requirement compliance until operation. Among these is securing a business license from the Department of Economic Development (DED) which has satellite offices in all parts of the city making their services very accessible to all.
Once already in DED, prospective business owners may go directly to DED’s Licensing Section in order to get an approval of the nature of their business and trade name and also to identify their partners.
The company lawyers should then seek approval from the Dubai Courts in order for the Memorandum of Association to be notarized.
Next is to register at the Ministry for Labor for establishment card application after the trade license has already been secured and the appertaining fees have been paid.
If there are native workers to be employed, they should also submit their updated salary certificates or labor contracts to be registered with the Ministry of Labor
Sponsoring
Aside from the licensing requirements, new businesses also need to get local sponsorship. A sponsor, which can be an individual, institution or a firm, will serve as a guarantor or a guardian to the business entity and will take care of the administrative work which will include an application for a visa, bank account and signing of contracts. In order to be qualified as a sponsor, an individual, institution or firm must have a minimum monthly income of AED10,000 per month and Dubai residence visa.
This arrangement is Dubai’s way of heightening immigration control by sharing the responsibility of ensuring that the applicants are of reliable background and always follow the laws and guidelines.
However, a foreign business need not get a sponsor if it is to be set-up in the free trade zones.
Partner Sourcing
Compared to the sponsor, a partner is an entity or individual who is willing to invest on a business that shows a promising return of investment opportunity. This can be quite challenging for most new foreign businesses in the country that have no ties with other big players in the Dubai market. This is where partner sourcing comes which is a reliable third party that will help a business find suitable partners.
Aside from these three, new businesses also have other considerations to make. For one is the area where the office UAE-based will be located. Aside from the cost of office rent Dubai, there are other factors that business owners need to consider and among these and the most important is suitability. The building should be able to cater to the most basic needs of the business such as parking allotment, reception, connectivity, among others. If it is meant to be frequented by customers, it should also be accessible. The proximity of the target clientele is also a big factor.
Given all these preparations, it is a must for businesses to carefully do extensive baseline research in order for them to come up with a business plan that will ensure a smooth transition when transferring to Dubai. Thus, it would be a wise decision to get a company that specializes in and has a reputable track record of helping new foreign businesses set-up in Dubai to help out in the whole preparation process as well as in all the legal compliance needed during the whole operation.
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