Starting a Business in UAE
With its vibrant market, Dubai leads the pack as the ideal location for business setup in UAE. For entrepreneurs, setting up a business in UAE is relatively easy, as compared to those in other Middle Eastern countries. There are a number of advantages that come with doing business in Dubai, including free banking, low business taxes, competitive prices & more. The below are some points, which one should consider before moving ahead with their business setup in UAE.
Before starting a business, it’s necessary to obtain the necessary permit for that activity. Business owners usually need to apply for a business license from the concerned authorities in the UAE. A business operation permit or an International Business Identity Card is required for the operation of a foreign company in the country. Companies usually have a strong, knowledgeable team of business experts who are able to guide you on your entrepreneurial journey from planning to branding, pre & post business setup in Dubai. It starts from locating suitable sponsor for your business & then licensing, amongst other formalities.
If you decide to do business in Dubai, there are several ways to get a license for doing business. You may either approach a local office space supplier or an investment firm that holds a permanent license to operate in the UAE. The latter option is preferred, as most of the licensed firms in Dubai have office space ready at their disposal, which they provide to their clients. They also offer an initial approval on the basis of proof of registration from the UAE government. There are other channels too, through which foreign investors may be able to acquire a license and start a business setup in Dubai.
Most business setup in the region prefers to partner with an individual or a group of individuals who holds a permanent license to operate from a UAE government-approved facility. This often means that the individual or group will have to take out a sponsor for their operations in Dubai. The sponsor then pays a fee for the right to lease or rent commercial or office space. There are many individuals and groups in the region who look for such a sponsor, and the office space provided by them becomes their responsibility once the license is granted.
The other way of obtaining a license for business setup in Dubai is by approaching an investment firm that holds a UAE government license. This requires an application to go through a series of steps before it is finally approved. Depending on the level of your business, you may be able to get the license straight away. Investors normally choose a sponsor to help them get their operations going. This person acts as a kind of intermediary and is responsible for ensuring that the necessary documents are in order, and the necessary licenses are in place. Once all these documents are in place, the sponsor takes care of everything else required to start up operations.
This option is preferable for those who do not wish to commit to a long term contract with UAE authorities. Business setup in the emirates can prove to be quite lucrative, as well as hassle free. However, those wishing to obtain a commercial license for their operations must be prepared to commit to long term contracts with the relevant authorities in the UAE. Investors should therefore be prepared to spend long periods of time proving themselves to the relevant authorities.
Those looking to invest in commercial properties in the emirates should ensure that they prepare a well-drafted business plan, which includes an exit strategy. If the investment firm that they approach does not provide any assistance with this, then they should draft their own business plan. The business plan must include detailed goals and objectives, market analysis, and projected earnings. The main aim of the business plan is to demonstrate that the business has the potential to earn a profit, and that it will be able to sustain itself in the long term, based on the type of property it acquires. This makes it easier for investors to convince the UAE authorities that they are making a sound investment when planning to buy a piece of property or rent out an office building.
For investors who have decided to stay in the area, it is advisable to register a business name in the area of their choice. This makes it easier for the local sponsor to provide them with references, should they need them. It may also help the business owner to attract more customers to the premises, as most people prefer to deal with someone they know and trust when making purchases. There are many advantages to establishing a business setup in the UAE – a tourist location can become a breeding ground for businesses, if the right steps are taken.