Choice and not chance determines your destiny. It holds utterly true in matters of business. Having correct knowledge of the market, ways to optimize resources present, innovating in the frontiers of new possibilities, a sound foundation, smooth operation are the elements of a successful business model. In furtherance, finding a conducive environment with robust infrastructure, competitive market, equity governance, and supportive policies is vital in ensuring that an establishment can gain momentum if it is elementally strong. Opening a business in Dubai gives your business a facilitative environment, dedicated infrastructure and governance that can boost the growth of your venture. One chooses Dubai because of the rapid economic upheaval of the country.
Moreover, it has become a global hotspot for business entities because of its geographical advantage. These strategically laid-out laws assist businesses of all kinds and scales. Moreover, it is straightforward to open a company in Dubai and leverage the best of what the global market offers.
However, as said before, starting your own business might feel like entering an unventured land, and every step is calculative. Therefore it makes many anxious. Nevertheless, some simple tips will ensure you never make the wrong move if you incorporate and keep them handy.
Tips for starting a business in Dubai: -
Plan the basics
At this juncture, where you are at the initial period of your business establishment, the very first thing you must do is a plan about the essential most aspects like
There are different norms to establish a business in Dubai. For example, establishing a business in the Dubai mainland differs from the Dubai Free Economic Zone. A mainland company needs a local sponsor, while a company set up in a Free Zone does not.
Your business model plays a significant role in determining which country you choose and, after that, whether you choose Special Economic Zones or not. For example- Free Zones in Dubai are industry-specific, like the coveted Jebel Ali Free Zone (JAFZA) and Dubai Airport Free Zone (DAFZA) possess perfectly fitting infrastructures for a trading and logistics entity company.
Dubai is a safe sanctuary for investments. The stable economy of the UAE piloted with a stable infrastructure offers varied benefits to businesses of every kind. However, as mentioned before, you have to identify the particular prerequisites of your business to be able to leverage what the diverse infrastructure provides.
You have to consider where you want your human capital to belong. Moreover, what works best for your entity, and how much can you harness the local talent, skill and the individuals from other countries. If you want to host people from other nations, you also have to consider the visa policies.
Before choosing the location, you will have to consider your funding reservoir, the stakeholders, the infrastructure that best meets your industrial needs, and employees with the caliber, knowledge, and industrial know-how. Planning every aspect is unquestionable the key to starting your own business.
Research is the next big task you have to do or get done by credible sources. It includes analyzing the target market, thoroughly studying the past and existing market trends, and foreseeing the upcoming ones. Also, you must have proficient knowledge of the state policies regarding licensing, permission and prohibition.
Three different locations can host your business in Dubai:
- Free Zones
- Sea Areas
Free Zones are ideal for companies who wish not to bring a local sponsor onboard. On the other hand, if you wish to bring someone on board who is more accustomed to the local market, aware of the economy, specifically in the UAE, you can establish your company in the mainland. The location you choose will also offer different custom clearances, tax exemptions and other features.
Reliable local partner
A local partner can help you get a grip of the foreign land, understand the nitty grittiness of the market, and familiarize yourself with the local culture and professional ethics. Future Vision brings such interested parties and entities together for a healthy partnership or sponsorship. Moreover, a local sponsor also helps with:
Determining the type of legal entity
Every strategic location has different legalities to meet. For example, within a Free Zone, you can set up two different types of companies,
(1) Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.)
(2) Free Zone Establishment
The difference lies in the number of shareholders. Whether the stakeholder is a natural person or a legal person, not all free zones register both types of companies; therefore, one has to check with individual free zone authorities about the type of company they can register.
Choosing a trade name
After determining the type of legal entity you want your company to be, you must choose a trade name. Then, you have to check with the respective free zone authorities or the Department of Economic Development for the permitted trade names and whether the name you intend to take is available for registration or has already been registered. For example, one can not use ‘Abu Dhabi’ and ‘United Arab Emirates’ in the name of their FZ LLC.
Choosing an office space
One has the option to buy or lease office spaces in free zones. However, it depends on the number of employees and the type of business activity of the company. Different free zones provide different facilities for office space like Dubai Multi Commodities Centre (DMCC), one can choose from a Flexi desk of 20-30sq.m. or a Flexi office of 200-265 sq.m. or an office running through multiple floors totaling up to 2,000 sq.m. each. At the same time, Dubai Airport Free Zone offers ‘Office packages’, ‘Smart Desk Office Packages’ and ‘Executive Office Packages’ options. Meanwhile, Hamriyah Free Zone Authority hosts over 100 executive office suites ranging in size from 15sq.m. to 42sq.m. with conferencing and internet services.
Hence, it is conclusive that opening a company in Dubai is easy especially with Future Vision, thanks to the various economic catalyst features the land offers, ranging from infrastructure, special business bubbles, laws and financial policies. Proper and thorough planning, administrative management and keeping the above tips in mind will help you make your map to a thriving business in UAE and the world.