Complete guide on Business Setup in the UAE
Dubai is one of the fastest-growing business hubs with the state of the art facilities available for local and international business. The government of Dubai offers friendly business regulations that attract investors worldwide.
Before starting your business, you must learn about the rules and regulations and the kind of business you can begin.
The legal structure of Business Setup in the UAE is according to UAE. In broad terms, the requirements of these regulations are: The Federal Law requires total local equity of not less than 51% in any commercial business and describes seven categories of business organizations that can establish in the UAE. This regulation explains the requirements for shareholders, directors, minimum capital requirements, and business incorporation processes.
You can start different types of businesses in Dubai based on the type of business and location; types are divided into three main categories: Mainland, Free Zones, and Offshore. Another thing to remember is that Dubai welcomes foreign investment, but some rules and regulations must be followed. To enter Dubai, UAE, you need to have a sponsor; a sponsor will take your responsibility. The importance of a sponsor can be determined by the fact that you must have a sponsor for any purpose, if it is business or you are just visiting.
Business Setup in the UAE mainland requires you to have a valid license issued by the administrative authority. Renewal of the license, cancellation, and up-gradation are also handled by Dubai Economic Development (DED).
To set up your business in Dubai mainland under a commercial license, you must have help from local UAE residents, which is also called a local sponsor. Local sponsor is by law hold 51% shares of your business, and you will have only 49% of shares. Local sponsor sometimes works as silent partners. The local sponsor can be an individual, or it can be a UAE-based company or group.
However, if you are setting up a business involving professional services, you don’t need 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.
Free zones are special economic zones in Dubai that are specially designed to attract foreign investment. The investor wholly owns free zone-based businesses, and there are plenty of options to choose from.
Offshore is another type of business setup offered in Dubai and has been very famous. Offshore means a business entity set up outside of the resident country in an offshore jurisdiction. Dubai offshore right benefits your business regarding asset protection, tax optimization, and business expansion.
It is recommended to get help from a professional when it comes to business setup in Dubai.