Dubai is a name that readily comes to the mind of every entrepreneur who wishes to benefit from the perks of doing business in a truly global financial hub. Boasting of state-of-the-art facilities, exemplary infrastructure, and a liberal atmosphere, Dubai has given flight to a countless number of business ideas.
The Dubai authorities genuinely encourage foreign investment on its shores, also exempting investors from payment of various taxes and duties. Regardless of the type of investment that you are looking for, Dubai surely has a business model to excite you. You may choose to base your Business Setup in Dubai, in the Dubai Mainland, specialized commercial Free Zones or Offshore.
While the Free Zones allow you to possess 100% ownership of your company, Mainland Company Setups in Dubai require enlisting a UAE national as a permanent partner with a majority shareholding.
Although one should ideally select a business jurisdiction according to the nature of his operations, it is worth knowing that having a presence in the Dubai Mainland is bound to bring in the most lucrative clients and partnerships.
A Few Bankable Pointers to Ease Acquirement of Business Setups in Dubai
- First of all, you must gather a good inventory of knowledge about the prevailing state of business in the sphere that you wish to operate in. You should take into account, the competition that you would be facing, and ensure that you have a sound source of capital to keep your business floating. This greatly helps while obtaining trade licenses and other accreditations.
- If you aspire for a Mainland Company Setup in Dubai, then you must be prepared to take a UAE national on board as a partner. Moreover, it is mandated for the local partner to hold at least 51% equity in the newly formed enterprise. However, to assert more control over your business, you may choose to remunerate your partner for his involvement in a multitude of ways, so that he does not need to put in any capital towards the investment.
- After formally registering your business, you need to apply for a professional, industrial or commercial license before commencing operations. To obtain the license, you need to assure the Ministry of Commerce that you fulfill the criteria for investment. The Ministry of Commerce stipulates that the investing amount be between $ 10,000 and $ 50,000, depending on your business activity. Shortly after procuring the approvals, you may withdraw the money to fund operations.
- If you wish to possess 100% ownership of the enterprise, gain exemption from audits, import and export duties, and repatriate all your profits, you would be better off setting up a business in any of the many Dubai Free Zones. However, it is important to make a prior assessment of whether your business can be feasibly operated in the location that the chosen Free Zone offers you.
- The Dubai government also offers help to aid you in land acquisition for your production plants within the Free Zones, if you are an investor in the sectors of manufacturing and exports. You are also exempted from commercial taxes, property licensing fees, land taxes, and other duties if you fall under this category.
- If you wish to be free from the hassles of obtaining sponsorship’s, investment of capital, and business registration, then your best bet would be to purchase an outgoing enterprise for a set price. A number of Business Setup consultants might help you in this regard.
- Lastly, it goes without saying that you need to be street-smart while negotiating contractual obligations with locals and that you should possess an aptitude for bargaining, to reap the best profits in Dubai. Also, while recruiting human resources, opt for skilled individuals of Asian origin, as you would have to shell out a lot less money than when employing Westerners.
Thus, while investing in a business set up in Dubai may seem complicated at first glance, you would witness everything fall into place once you hire a credible legal advisor and a proactive Business Setup Consultancy firm to assist you. It isn’t without reason that Dubai enjoys immense popularity as a venue for commerce.