Things you need to know before starting up business in Dubai mainland

As business consultants in Dubai we are pleased to tell you that Dubai is recognized as an ideal place for creating any type of business. It is because of the immense opportunities and incentives available for new companies to establish their businesses anywhere in Dubai. It is why thousands of SMEs, large companies and freelancers have been established throughout Dubai. Most companies maintain their business because of the huge profit they generate and continued support they receive from the authorities in Dubai. But there are rules and regulations designed by each jurisdiction business in order to run the system efficiently. Dubai is the case too. For those who want to set up your business in Dubai, they need to know some important steps in order to obtain the information needed to succeed in your business venture in Dubai.

The following are some important points you need to know before doing business in Dubai. This will help you set the right kind of business in the appropriate places. Licenses

There are mainly three types of commercial licenses available in Dubai. These are commercial, industrial and professional license License. The requirement for the type of license is based on the type of business that will start in Dubai.

License is required primarily for commercial activities. professional license is required for companies that provide services to their customers. an industrial license is required if the company will start its activity related to the manufacture and storage of various products.

Business jurisdiction

Another important thing is to understand the types of business jurisdictions available in Dubai. There are three places available to establish a business structure in Dubai. These are: the mainland Dubai area, free zones and offshore. There are different rules and regulations for all these jurisdictions business.

The main area of ​​Business Setup in Dubai is the continent. Dubai continental businesses can contact their customers in Dubai and elsewhere in the UAE without any restrictions. Dubai Continental supports all business activities allowed in Dubai and the UAE. But foreign companies can only own 49% of the shares of your business. Remaining 51% of the shares will be delivered to a local Emirati sponsor. (Branch of an enterprise and corporations licensed professional can retain 100% of its shares).

There are over 25 free zones in Dubai. Most of these free zones are specific to or prefer a single industry. Companies in these zones are mostly tax-free. However, there are some things to consider for setting free enterprise in the area. These free zone companies can not offer their products and services within EAU directly. An important advantage of these free zones is that they can be fully owned by foreigners. These free areas are best suited for companies trading and dealing outside the UAE.

Another important business jurisdiction in Dubai is JAFZA offshore. Like most other offshore jurisdictions sea in Dubai offers comprehensive tax evasion, security, confidentiality of assets and other important benefits for foreign investors. The high seas an annual fixed fee is charged only to conduct business outside the UAE.

Authorities

Main authority responsible for setting company in Dubai is the Department of Economic Development (DED). But other departments to be contacted for commercial activities such as legal advice, veterinary, food trade, commerce and other jewelry are also required. Free zones have their separate structure and there are different authorities in each free zone to start a business there.

Trade Name

An important legal process that must be completed before establishing your business in Dubai is to select and obtain approval of a trade name. It is necessary that this name is unique and in accordance with the guidelines derived from the authorities in Dubai. It is important to choose the name that indicates the nature of the business. This is useful in growing your business.

Employees

For businesses in mainland Dubai, which mostly need to hire administrators to oversee company problems. Companies can hire other employees according to their needs by issuing visas to employees. The maximum number of visas for employees depend on the type of business and its license.

Local promoters and agents

Most companies in Dubai are required to wear continent the services of local sponsors. These individuals or corporations Emirati help resolve legal problems or business-related foreign company. These local sponsors will have 51% of the shares of the company, but it is not necessary to share the same level of profits of companies with local sponsors.

If professional license (individual professionals or civil society) are required to be appointed only local agents. These local agents have no shareholder of the company nor interfere in the affairs of the company.

There is no requirement for appointing local sponsor local or agent if building your business in any of the free zones in Dubai. In this case, the free zone itself acts as a sponsor for a business.

Capital

This also depends on the type of company you want to open along with the jurisdiction you choose for your business in Dubai. The Memorandum of Association of your proposed company usually describes your minimum share capital. This minimum share capital is sometimes required to be paid in advance. But in most of the occasions, there is no such compulsion and you can pay your share capital after setting up your company.

These are few of the basic points that you need to now before setting up your business in Dubai. Knowing these things will provide you a good indication about the procedure and the right jurisdiction according to the type of business you want to setup. Another important thing to remember is that you can make this whole procedure simpler and quick by choosing an appropriate and experienced consultancy firm. We can fully assist you in this procedure.

Description

Creating new businesses in Dubai is quite profitable. However, there are certain rules and regulations to be followed for this.