Dubai has slowly but steadily grown into an entrepreneur’s paradise. With several business start-ups finding their place in the industry there, Dubai has been attracting a lot of attention from business investors. This has also helped Dubai show its economic stability in the international market.
The recent market trends in Dubai offer several prospects for foreign investors to tap into the export and import of commodities. Along with that, there are others who are taking advantage of the tourist traffic in the city.
However, the city has some strict regulations you need to follow to be able to build your business there. For obvious reasons, you might want to get acquainted with these facts associated with any business start-up. This will further help you avoid any problems a start-up in United Arab Emirates (UAE) might have to face.
Things You Should Know Before Starting a Business in Dubai
Choose a Local Sponsor
It is very important for you to choose a UAE national for a fruitful business start-up in Dubai. If you are really looking forward to building a business in Dubai, you must be partners with a locally registered company.
To start a small business in Dubai, you have to take a UAE national as a 51% partner, also known as a local ‘sponsor.’ This way, you can locate your business anywhere in the city. In addition to that, businesses that have to work in ties with the government need to have a registered local sponsor.
This is a boon considering you can get the best choices of locations according to your budget. The sponsor has to be paid an annual fee, which both parties decide. This helps build a rapport with the sponsor, and he can help you with any problems with authorities you might face in the future.
Choose a Free Zone If You Want 100% Ownership
As mentioned in the prior point, to start a business in Dubai, you need a local acting partner. However, there is a way you can have full ownership of your business, and that is by locating your business in the free zones. Nevertheless, this is not a very practical idea for businesses that require city traffic like retail stores and restaurants.
That said, you should always consider your budget. Renting or purchasing a property in the Free Trade Zone can be comparatively expensive. Here mentioned are some benefits of locating a business in Free Zones:
- 100% ownership
- Duty-Free customs boundary
- Speedy start-up
One of the leading names in that industry is Dubaibusinesssetup. We offer a vast variety of services and can help you set up a free zone, offshore, and even mainland businesses.