If you want to start your business on national or international level, people mostly businessmen prefer Dubai for business set up. Dubai is famous for its business activities. For business purpose Dubai is a good place. In Dubai businessmen uses advance technology for business set up.
Dubai’s economy is very strong. Also Dubai’s government give flexible rules and regulations for business set up, that’s why businessmen from all over the world came in Dubai and start their business. If you plan to start your own business in Dubai first you realise values of Dubai, in Dubai there are many different people related to different cultures exist. People from different countries came in Dubai after getting all information about Dubai’s culture you must realise about the official process of business you want to start in Dubai.
LEGAL STRUCTURE OF BUSINESS SETUP IN DUBAI:
Business set up is clearly explained in UAE national lawn o.8 (1984). After changing in law government also include foreign business in Dubai, they allow foreign companies to came and invest in Dubai by starting their business. But if you start any business in Dubai 51% of profit must give to government, it is most important term in Dubai’s law. You can give profit as;
- Minimum your investment
- Business merging process
In this law government also explain about introduce new businesses and also dissolution of business and companies in Dubai (UAE).
DIFFERENT TYPES OF BUSINESSES IN DUBAI:
In Dubai you have many choices in front of you. You can also get profit of stable economy of Dubai. Because of strong economy and administration government of Dubai distributed the country into different parts. You can introduce any type of business in Dubai according to your need and desire. Because of wide range of businesses Dubai government divided the business types into 3 parts;
- FREE ZONES
Dubai administration never compromise on rules and regulation, you can start any type of business in Dubai but have to follow rules. By follow rules and regulation of Dubai administration in business set up you can easily start and run business successfully.
Sponsorship is very necessary while start your own business in Dubai. Sponsor fulfils your duties of start new business in Dubai. You realise the significance of a sponsor when you need sponsor for business purpose in Dubai. In every business there is need of sponsor.
- If you start mainland business UAE nationality holders or companies in UAE perform their duties as sponsors.
- But if you start free zone business then professionals perform duties as sponsors.
VALID LICENSE ISSUED BY DUBAI ECONOMIC DEVELOPMENT (DED):
For business set up in Dubai you need license that is given by Dubai Economic Development (DED), it is a governmental department who is answerable for license. DED main responsibilities are to;
- Issue license
- Cancel license
- Upgrade license
These all responsibilities are performing by DED department. In Dubai there are four types of business license that are issued by Dubai Economic Development (DED).
- Commercial license
- Professional and skilled Service license
- Local office license
- Industrialised License
If you want to start your own business in Dubai and you also have commercial license then you must need sponsor from Dubai citizen, known as Local sponsor, but you have to give 51% of your profit shares to local sponsor. You have to give all management duties to local sponsor. You can sign contract with local sponsor so that he act like silent sponsor and get annual fee asa local sponsor. You can hire UAE citizen or UAE company as local sponsor.
However, if you are setting up a business which involve professional services you don’t need to have a local sponsor, in that case you only need a service agent. Service agent works on your behalf and helps you deal with the local administrative authorities to start your business. You are allowed to hold 100% of your professional business and service agent will only be paid once for the service he offered.
Free zones are commercial zones;it is design in such a way that invites investors from all over the world. In free zone business type all shares are old by you, there is no profit of anyone else sponsor in your business. In Dubai there are free zone establishments that give permission of free zone business. If you want business set up in Dubai then there is requirement of agreement with free zone. This establishment provides license for business purposes. In free zone business all responsibilities fulfil by you. You can also gain the benefits of paying no tax. In free zone option you can also select different types of business according to your need and demand. You can start you own business with legal responsibilities or to start service base firm. Free zone establishments also provide license according to your business. You also have option of international trade.
If you want to end your free zone business then it is also an easy procedure as no legal paper work involve in it.You can easily end your free zone business.
Offshore is a well-known kind of business set up that is mostly used by businessman in Dubai.Offshore is a type in which business persons perform duties related to business outer side of local country areas. In Dubai offshore governmental body offer beneficial things such as;
- Property security
- Tax process
- Business development
If you want to start offshore business type then must follow rules and regulations of offshore governmental body. In offshore type you are not able to do business or trade inside your country or area.
HIRE A CONSULTING FIRM:
After confirm your business type and business set up that you want to start in Dubai, the next most important step is to consult with business consultancy company for consultancy of your business. in Dubai there are many Business Consultancy Companies work for business consultancy, e.g. PTV business provide services and also fulfil responsibilities of all legal procedure.
When you want to start your business set up in Dubai you have to follow some steps;
- Most important thing is to conduct proper research and select the business type carefully.
- Select legal authority and follow rules and regulations.
- For business set up you have to avail services of consulting firms.
- Properly fulfil the process of business license gaining that is issued by government.
- Avail business license according to business type.