Business setup in Dubai

What You Need to Consider Before Starting a Business in Dubai

For the past few years, Dubai has been a great place for business investors. Dubai is a top destination for business investors. You can also add to that its open trade system and low cost, as well as the availability of a skilled workforce.

Dubai is a great place to start a business. The benefits you receive will depend on what type of business you have and the category and area you choose when you set up your company. Each category, whether it is onshore, offshore, or in a free area, has its benefits and drawbacks. It is important to understand each one in detail to determine which is best for your business.

You will also need to follow certain procedures in order to ensure that your company is set up without any delays, lags, or additional costs. If you’re thinking about starting your own business

It is important to understand the process and the types of decisions that you will need to make.

1 -Having a Local Sponsor

You will need a sponsor to help your Business setup in Dubai Mainland Area. You will have 49% of the company while a local sponsor will hold 51%. A local sponsor gives you the freedom to choose where your business is located in Dubai. While local sponsors will not share in your business’ profits, they will be required to pay an annual fixed fee. This agreement will determine how much. A local sponsor will not only allow you to keep 100% of your profit share but also grant you many other benefits, such as the ability to open global bank accounts.

2- Selecting a free zone area

A free zone is a category that allows you to be completely independent of any partners. You will enjoy other benefits than 100% ownership in free zone areas. You can set up your business faster and get assistance with many business matters, such as recruiting. Although a free zone may seem like the best option, it’s important to remember that free zones might not be suitable for your trade business. The UAE market is not permitted to trade in a free zone. A 5% customs duty is also added for trading in the UAE market.

3 – Issuing of a Trade License

The Department of Economic Development, Dubai issues your trade license. You can run your Dubai business with a trade license. A trade license is a necessary step to get your business started. Your business will grow. There are many types of trade licences in Dubai. It is important to understand which license you need and what steps you must take to obtain it, depending on your business.

Trade licenses categories include:

  • A Commercial License is issued to trade types of businesses.
  • An Industrial License is issued to allow for the operation of industrial or manufacturing businesses.
  • Professional License Issued to businesses that offer services or run professional businesses.

4 – Visa Requirements

You will need a visa to allow you and your family members to live and work in the UAE. The type of your business, as well as the category under which it is registered, will determine how many visas you can issue to your employees. A sponsor can help you apply for your visa if your business has one. If you are familiar with the steps to take, owning a business in Dubai is possible. It is recommended to hire a business consultant to speed up the process and ensure that your business can be started quickly and at a low cost.

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