Dubai is one of the most profitable cities in the world, attracting a lot of attention from entrepreneurs and investors looking to set up shop. Due to its economic stability and international market exposure, Dubai encourages business start-ups. However, before beginning the process of forming a corporation in Dubai, it is necessary to learn the relevant information, rules, and regulations.
A few dos and don’ts need to be followed if you want a business setup in Dubai.
- Go for a local sponsor: If you want to tap Dubai’s potential, a locally registered sponsor could assist you better. A local sponsor can help you with many things, like choosing the best location to set up your business.
- Select a Free Zone: If you wish for a proprietorship business, it is advisable to choose a free zone. Setting up your business in a free zone offers other advantages as well-
- Easy and speedy business setup
- Duty-free customs boundary
- Confirm visa eligibility: You and your employees need to have the proper visas to live in UAE. Working with your sponsor to get visas is always advisable if your start-up is a local company in Dubai.
- Hire a registration agent: It is advisable to hire a business setup service in Dubai, which can help you through your company’s registration. Registered consultants can assist you with processing the application forms and submitting them to the concerned authorities.
- Do not go by the published information every time: Always confirm the published information before finalizing your plans. Rules keep on changing, which makes it vital to ensure the facts before finalizing any plan.
- Do not sign any sponsorship without a written agreement: It is advisable to make a legal agreement on the charges you and your sponsors are agreeing on before signing any contract. Never rely on verbal agreements.
- Do not register without looking at the office size: The actual availability of offices in the Free Zone may vary from the published information. Since start-up business companies in Dubai usually look for cheaper options, it is profitable to look at the actual company size and conditions before the registration.
Steps to set business in the Dubai Free Zone
Setting up a business in the Dubai Free Zone is relatively easier and faster and requires minimum paperwork. Here we present the critical steps of forming a company in a free zone.
- Choose the business activity and names: Free zones allow only a few specific types of businesses like media, medical, etc. So, it is necessary to choose a company that is closely related to these areas. Naming your business as per the UAE naming conventions is also required.
- Register your business: Each free zone in Dubai is governed by its respective rules. Take the assistance of an approved business setup service provider to deal with all the documentation, Non-Objection Certificate (NOC), etc.
- Obtain a business license: Your business’s primary activity would decide the type of business license you get. Companies like Immersion Group DMCC can help you assist with the trade license and all the paperwork without any stress.
- Process your business visa: The final step of company formation in Dubai is processing your own and employees’ business visas. A trade license is essential to get started with visa processing.