Starting a business in Dubai is something that is always encouraged by the authorities. This is the reason why the city has started attracting the attention of the entrepreneurs and business enthusiasts who are attracted by the economic stability in the global market. The present market tendencies in Dubai offer lot of chances for the foreign investors in order to exploit the import and export of commodities, and the increasing tourist traffic of the city for a lot of potential clients and customers.
Things to Remember
- Good Knowledge of the Area: You should have a good deal of information about the region. Carry out extensive research in the business sector in which you are about to operate. Be prepared with a viable business plan which includes the market conditions, the competition and the results that you will forecast. You should be ready to find the required investment from your resources or your bank, and ideally through other means instead of applying locally in case you are new to the area and do not have a track record. If there is a credible plan, you can attract local support, or even the support from the government.
- Local Partner: The legal system is such that it needs you to have a localized partner which holds the major part of the interest and so can control the business or also close it if they want. Whether that partner is an individual or a company, they do not have to contribute to the startup investment in order to make the financial participations. The partner can be remunerated with various means. However, these days the local partner term is under review for encouraging foreign investment.
- Money for Investment: When your business has been registered, you need to prove to the Ministry of Commerce that you have quite a substantial sum to invest. This amount varies between states and is known as a guarantee against the liabilities, although you can withdraw the amount shortly later.
The entire process is financially risky and complex, and this means that you need to have knowledge about the local situation. Consult a qualified lawyer from the beginning because they can guide you through the registration procedures and protect your interests. This is mandatory whether you operate a small business or a large one. There might be unauthorized businesses operating in the area, but in case you are ripped off for anything, you will at least have the law to support you.
Registration and Legal Formalities
In Dubai, the corporate law is similar to the western countries. You can operate your business as a limited liability operation, a private firm or other type of operation. Creating a business or purchasing an existing concern is tough and you need the approval of the law and guidance about the formalities of registration. As a foreigner, you can use an Arab or western joint venture legal firm. While choosing, seek the advice of the Arab-British Chamber of Commerce, the Middle East Association, the DTI and the commercial sections of your Embassy.
The Power of a Sponsor
Having a powerful sponsor can be a great benefit, although usually the authorities are helpful and do not tend to be tough unless there is a good reason. You will have a pleasant experience if you are patient and polite. Usually, the Arabs are helpful and friendly, and so it is completely good to ask for advice. Always remember that recruiting a foreigner is tough and often involves huge legal expenses and traveling costs. However, it is best to note that you should not sign a sponsorship with a sponsor without a written agreement. Never rely just on the verbal understanding.
HLB Hamt is one of the best business consultancies in this regard, and will help you and guide you to setup a business in Dubai with great ease. The team of experts will help you streamline your work and this will in effect result in the efficient setup of your business in Dubai. With their top industry practices in the construction, retail, logistics, IT, and a wide range of expertise, you are in for the best support in the industry in order to setup a business in Dubai.