The Do’s and Don’ts of Setting Up a Business in Dubai
Dubai is the hub of different business opportunities. Businessmen should focus few do and don’ts before setting up a business in Dubai.
Entrepreneurs around the world seek opportunities to expand their businesses. Middle East countries, especially UAE, is one of the businesses hubs because it offers lucrative business opportunities to businessmen. Dubai has a multicultural, robust infrastructure, low taxation and an entrepreneur-friendly city.
These features of Dubai make the land most favorable for businessmen. A large number of entrepreneurs love to come and expand their businesses here. However, setting up a business in Dubai is relatively easy compared to other foreign lands. Before starting a business in Dubai, an entrepreneur needs to know the formalities regarding company registration, licensing, recruitment of staff, and other about other aspects. An entrepreneur should focus on the do’s and don’ts before formatting a company in Dubai. It will surely help him in saving time and energy.
Do Research in Company Formation
A wise entrepreneur must know the area of trade and the game’s rules. Dubai is an entrepreneurial paradise due to its flexible investment policies and tax exemption laws. Still, business owners must know a few facts before formatting a company in Dubai. There are three significant types of company formation available in Dubai mainland, free zones, and offshore. An entrepreneur selects the company formation based on the type of business and target audience.
There are certain restrictions linked with company formation that may or may not go in the favor of the businessmen. So, it seems logical to spend time knowing about the do’s and don’ts of doing business in the fast-growing environment of Dubai. Business growth highly depends upon the business entity an entrepreneur selects.
Select The Suitable Business License
Running any business activity requires a license, and entrepreneurs cannot select the license randomly. The business can fall into three categories industrial, professional and commercial. An entrepreneur’s responsibility is to select the appropriate category or license according to the business’s nature. It might be the process of getting the license is different for each category. Each license requires approval from an external ministry, separate documents and different fees. Choosing the appropriate business license is essential to running the operations smoothly.
Do Get a Local Sponsor
An entrepreneur might or might not require a local sponsor to set up a business in Dubai. The local sponsor must be a citizen of Dubai. To format a company on the mainland, the businessmen must have a local sponsor who owns 51 percent company shares. After it, the company can operate as a limited liability company. It helps the company is operating without any tension.
Sign A Legal Document with a Local Sponsor
Sometimes, companies find a local sponsor quickly and commit verbally, which is wrong. Signing a legal agreement between the businessmen and the local sponsor is necessary to establish a legal validation. Legal documentation is the proof of the contract. It helps you run the business smoothly and save the businessmen from unwanted future complications. Few sponsors charge extra for the extra services they provide to the company.
Check The Requirements of Visa Eligibility
Getting a business visa in Dubai is not a challenging process. The government of Dubai offers investor-friendly policies to foreigners. The process is smooth once the businessmen have all the required documents and proofs. The local service agent handles the visa application process in case of a local business setup. A businessman has to do before applying for the visa is he should ensure the validity of all the documents for the approval of the visa.
Get A Legal Business Registration
Take the help of an authentic company to register the business and do not handle the process on its own to save some money. It is not easy as it looks, and you need help with a few steps. So, it is better to go to them at the start of the process to avoid the hassle. Hiring a consultant for the business registration process saves your time and energy. You can spend that time and energy on growing the business.
Do Explore the Culture of The Dubai
Dubai is the hub of different brands, full of fun activities and diverse cultures. Do explore the environment of Dubai. Do not spend your whole time in during work. Try to learn about different cultures and learn new languages. Attend the local festivals and try different cuisines. Enjoy the visiting place in UAE like desert safari or Burj Khalifa. Explore Dubai as much as you can during business there because it is a great chance.
Expand The Network
Dubai is the city of networking. Arrange parties and do meet and greet. Person interaction would be more valuable with your clients than the email-interaction. The Word-of-mouth strategy works here quite well. Stay in touch with business entities and build your network. Networking meet-ups will help you build new abilities, skills, and a remarkable client list.