Dubai is the corporate capital of the UAE – the United Arab Emirates. Its economy is expected to expand at a quicker pace this year, outgrowing the levels achieved in 2018, despite the global economic slowdown. GDP – gross domestic product – is expected to grow 2.1 percent in 2019, further accelerating to a staggering 3.8% in 2020.
This city provides ample business opportunities and innovative commercial modules for corporations all around the world. The investor-friendly environment and international exposure are just some of the factors that propel entrepreneurs to start their businesses here. Yet, it isn’t easy for a new entity to understand the process of setting up a company. Here’s a list of the top-picked tips to be aware of before starting your own business in Dubai.
Know your business
For a successful business venture, you will need a sound knowledge of the region, in-depth research of the viability and demand for your service or product and a solid business plan that can attract investment partners. You may have an amazing idea, but if there is no demand for it, what would you stand to gain?
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Researching competition will allow you to have a business offering that is a notch above theirs. Initial research should include spending some cash on marketing to feel out the demand for your product, which will probably save you thousands of dollars in the future. You can also gauge the interest in your service or product by utilizing Facebook, Google and other social media and search engines to ask people for their opinion.
Find a local partner
The law in the UAE states that your company must have a local partner who holds the majority interest and can thus control your business, which includes closing it, if necessary. The partner will own 51% of your enterprise, so they can call all the shots regarding it. Whether this partner is a company or a person, they don’t have to contribute to the business investment or participate monetarily at all.
When self-employment is in question, there are numerous ways that a partner can be remunerated. This local partner requirement is currently under review in certain states, to encourage foreign investment.
For starters, you can hire two or three finance consultants to help you sort out all the expenses and predicted income regarding business development – to ensure you will grow in the right way without making mistakes. Or find specialists on business deregistration, they always know the reasons why a business closes in every industry as they go through that same process with their clients.
Other than that, you can also consult professionals for company setup in Dubai who can provide you with expert advice and solutions about business restructuring. This will safeguard and maintain the control of your corporation’s presence through the UAE. They, like the previously mentioned financial consultants, can offer you a range of corporate structuring and consulting services that are suited to your company’s activity and expansion plans.
Registration and external approvals
You will have to register your trade name with the DED. Standards from the DED – Department of Economic Development – state that you will have to give a name to your business. This trade name will act as an identifiable trait of your company, and hence DED emphasizes associating the name as per the license type. It usually takes around three days to register a trading name, that is afterwards valid for a period of six months.
Besides this, you may also need external approvals for your company in Dubai. DED dispenses trade licenses to companies and works with investors. However, at times you may also need external approvals to start your business. Typically, such permissions are acquired by semi-governmental and non-governmental bodies.
Based on these details, it is obvious that starting your own business in Dubai is an extensive process. Nevertheless, you can ensure that it is fast and cost-effective by having a company setup consultant. With an expert business consultant, you won’t waste time and money on unnecessary items and documents.