Setting up your own business can be an extremely challenging task and an important milestone in your career. There are three key elements that you need to understand about the business setup in Dubai for before starting a business here. This setup encourages foreign investment and this means that setting up a business here can be extremely liberal than anywhere in the world. The three key elements to keep in mind before starting a business in Dubai are given below.
Understanding the Region
Apart from understanding the business setup in Dubai, you must also be aware of the business setup in UAE. You must be prepared to complete extensive research into your business sector. Apart from that, you must have a viable business plan that analyzes the market, your competition and expected results. You must also be ready to source your own investment or approach a bank for the same. Proposing a credible business plan might attract local and even government support.
Local Partner
Under the business setup in UAE, the law requires you to have a local partner who hold a majority stake and give him control of the business. This means that this partner will have the power to shut down the business if needed. This partner must own 51% of the company and have control over the company. This local partner, an individual or a company, is not required to contribute financially to the business and needs to be remunerated as well. This local partner law is being reviewed by various states including the business setup in Sharjah.
Proving Your Investment
Once your business is registered, the Ministry of Commerce requires you to show a considerable amount of money to invest. This sum varies in different states. The generic business setup in UAE requires the sum to be between $10,000 / £6,500 and $50,000 / £33,500. This sum will also be regarded as a guarantee against liabilities; however you can withdraw the money later.
If you are looking to own 100% of your company, you can consider starting a business in a Free Zone. However, this is risky as the Free Zone is usually very far from the city and your business could fail very quickly. Rest costs in the Free Zone are also considerably higher than the city. Once you understand what needs to be done, make sure you hire a good lawyer to represent your business. A lawyer will help you through the registration process and can help in safeguarding your interests as well. Many people have successfully launched flourishing businesses in Dubai. Local authorities encourage new business, especially manufacturing and export business. Another way of starting a new business in Dubai is acquiring an existing business. This does not involve capital or obtaining sponsorship. You need to be confident in your abilities as a business person and do not leave any gaps for the locals to exploit. Although they are pleasant and friendly people to do business with, they are experts at finding loopholes and exploiting them.
Understanding the Region
Apart from understanding the business setup in Dubai, you must also be aware of the business setup in UAE. You must be prepared to complete extensive research into your business sector. Apart from that, you must have a viable business plan that analyzes the market, your competition and expected results. You must also be ready to source your own investment or approach a bank for the same. Proposing a credible business plan might attract local and even government support.
Local Partner
Under the business setup in UAE, the law requires you to have a local partner who hold a majority stake and give him control of the business. This means that this partner will have the power to shut down the business if needed. This partner must own 51% of the company and have control over the company. This local partner, an individual or a company, is not required to contribute financially to the business and needs to be remunerated as well. This local partner law is being reviewed by various states including the business setup in Sharjah.
Proving Your Investment
Once your business is registered, the Ministry of Commerce requires you to show a considerable amount of money to invest. This sum varies in different states. The generic business setup in UAE requires the sum to be between $10,000 / £6,500 and $50,000 / £33,500. This sum will also be regarded as a guarantee against liabilities; however you can withdraw the money later.
If you are looking to own 100% of your company, you can consider starting a business in a Free Zone. However, this is risky as the Free Zone is usually very far from the city and your business could fail very quickly. Rest costs in the Free Zone are also considerably higher than the city. Once you understand what needs to be done, make sure you hire a good lawyer to represent your business. A lawyer will help you through the registration process and can help in safeguarding your interests as well. Many people have successfully launched flourishing businesses in Dubai. Local authorities encourage new business, especially manufacturing and export business. Another way of starting a new business in Dubai is acquiring an existing business. This does not involve capital or obtaining sponsorship. You need to be confident in your abilities as a business person and do not leave any gaps for the locals to exploit. Although they are pleasant and friendly people to do business with, they are experts at finding loopholes and exploiting them.
Good guidance for the people who want establish their business in dubai...i really like your efforts
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