Dubai is a good place for business startups as the emirate has a promising future for foreign investment. Over the years, it has made its economic stability known to the international market. As a result, many foreigners are enthusiastically investing in the City of Gold.
Knowing about the rules and regulations here, particularly the Article 120 UAE labour law is necessary to run things smoothly here. Apart from that here are some necessary Dos of business startups in Dubai.
Select a UAE National or Local Sponsor
As far as business opportunities are concerned, Dubai has a lot to offer. However, to start up a business, you need a locally registered LLC business. You need to take a UAE national as a 51% partner. They will be called a local sponsor.
With the help of a local company, you can enjoy the freedom of setting up your business anywhere in the city. That is good for a business startup as you can find a location that suits your budget. However, bear in mind that you need to pay a yearly fee to the sponsor that can be negotiable.
To Fully Own the Business, Select a Free Trade Zone
If you don’t want to take up a UAE national as a sponsor, then you should locate your business in one of the free zones. However, this may not be suitable for businesses like retail stores or restaurants that should be in the city markets.
Businesses that need to work with the government have to be registered with a local sponsor. Also, whether you decide to buy or rent in a Free Trade Zone, it is going to be expensive. At the same time, you get to enjoy major benefits like 100% ownership, speedy startup, and duty-free customs boundary.
Opt for a Location that is Most Suitable Cost and Convenience-wise
Finding the most suitable location is a key step while planning a startup in Dubai. You need to set yourself up in an area that is most suitable and profitable for your business. A location in the right area of the city can be selected to set up a shot or office according to your product or service. If you plan to have a Free Zone company, then you need to decide according to distance, costs, and if it suits your product/service, trade requirements, and business model.
Confirmation of Visa Eligibility & Requirement
To establish a business startup in the UAE, you need to have a visa that allows you and the employees to live in the country. Visas are permitted for almost all businesses. But the number tends to vary according to different criteria like the nature of business, category of employee, nature of the business, or the investor. If you plan to have a local company business startup in Dubai, you would have to work with the sponsor to get the visas – the first time at least.
The process of visa application is not strict in Dubai. The emirate wholeheartedly welcomes foreign investors. The government is open to the idea of setting up shop in the city. Any business is good business. So, there are no restrictions. But you would need to have your sponsor apply a visa for you as the investor for your business startup you plan to establish in Dubai,
Apart from your passport and other legal requirements, there is also a need for a letter from the sponsor. This letter shall have their personal information, the reason behind applying for visas, and the likes before processing.
Hire a Professional Registration Agent
This is necessary. You can use all the professional help you can get from where you plan to set up your business. This way, there are fewer chances of mistakes or getting in trouble with the law. You can make an informed decision. Such consultancy firms offer their expert services for planning out your registration process right from the start. This will include the strategies you need to take up, calculating the potential costs, licensing, location options, and planning ahead for any roadblocks or hurdles that might come your way.
They will take care of all the necessary requirements and paperwork, drawing up the contract and force majeure clausesso your business can be legally registered in the smoothest way possible. However, one thing you should know is that there are no financing options available when it comes to startups. So, that is something you should arrange for first and foremost and then move ahead.
Good luck!
