Are You Considering Setting Up a Business in Dubai?

Here’s What You Need to Know. Dubai has become a financial center and investment destination of choice because of its geographical location and a favorable tax regime on individual and corporate earnings and a favorable legal structure. Being one of the fastest developing economies in the region and in the entire world, the emirate of Dubai presents a perfect opportunity for new start-ups as well as more experienced companies. But to establish a business in Dubai several restrictions have to be observed, the right business model has to be selected, and it is necessary to understand the differences between the business areas. While going through this article, you will discover detailed insights into each of the steps of the business setup process in Dubai.

Key Steps to Setting Up a Business in Dubai

1.Define Your Business Activity:Dubai categorizes business activities under specific licenses such as commercial, professional, and industrial. The choice of the right activity is critical in a way because it becomes determinative of the type of licence and the jurisdiction wherein your company is authorized to conduct its operations. Examples include:

• Commercial License:Most suitable for trading or retail type companies.
• Professional License: Used when the firm is in consultancy and service industries. 
• Industrial License:Necessary for production and industry procedures.

2. Choose the Right Jurisdiction:Dubai offers three main jurisdictions for business setup:

• Mainland Dubai: This option affords liberty to under-take business throughout the UAE and to access the locals market. Basically, it must be noted that most international business entities need a local counterpart
• Free Zones: Some privileges attached to free zones include; The 100% foreign
  ownership, There are no import/export duties, There are no taxes allowed in special free zones. Nevertheless, the business activities within the free zone are limited to the free zone or export business to other countries.
• Offshore: Offshore companies are established mainly for carrying out interstate business with the advantages of confining ownership, having safeguard for assets, and other fiscal advantages. Foreign corporations are unable do business directly with the UAE.
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3. Select a Legal Structure:It prescribes how, where and when individuals or organizations can be held legally responsible and defines ownership and tax regime. Dubai offers several options:

• Limited Liability Company (LLC): Offers limited liability and permit limited
  companies to be owned by foreign investors in the main part of Dubai.
• Sole Proprietorship: Appropriate for individual business people, and freelancer workers.
• Free Zone Company (FZC): Permits 100% FDI with limited liability; foreign investors may choose this if based in a free zone.

4. Register Your Trade Name: The registration of a trade name is obligatory and the procedures entail obtaining approval from the Dubai Department of Economic Development (DED) for Mainland or the free zone concerned for free zone company formation. The name should not undermine the cultural standards of Dubai, and a number of words are prohibited to be used in company names.

5. Licenses and Permit for Doing Business:Obtaining a business license is compulsory depending on the type of business that you have.

• Restaurants require extra food safety permits. 
• Health facilities must have a medical permit.

Every free zone also has its own licensing body while the DED deals with licensing for Mainland companies.

6. Secure an Office Space

• The type of business and jurisdiction will influence office space requirements. Mainland businesses can locate their business anywhere in Dubai while free zone businesses must rent or own premises within the free zone of their operation.
• People can lease office spaces via renting, hence having a feel of a professional workplace especially incubates or freelancers.

7.Get Visa and employments visas:The residency visa is mandatory for business owners and each of their employees to work and reside in the country with focus on Dubai. Free zones do have their visa systems and these please the application process. They may also seek long-term visa based on his/her investment amount and the industry of the investment such as the UAE Golden Visa.

Common Challenges and How to Overcome Them

1. Understanding Regulatory Requirements: Over the years Dubai have optimized numerous activities although there are still some peculiarities according to the legislation, especially related to the foreign ownership, licensing, and taxation. _it is recommended to involve the professional
   team of the business setup services provider, for instance, clicks2compare. 
2. Securing Financing: Venture capital funding is available in Dubai along with government support program for start-ups and micro enterprises. As such, it will be useful to work with a consultant who will find the right financial products for an entrepreneur.
3. Hiring and Managing a Workforce: The Constitution of UAE and other labour laws have provisions that deals with wage protection, limitation on working hours and employees’ benefits. This subject is particularly crucial to businesses that are based in the UAE, as formulating a sound legal HR policy will help the company avoid legal crises in the future, Which assumes special importance for companies operating in the UAE, since the construction of a proper legal HR policy will minimize the chances of legal troubles in the future.

Benefits of Setting up a Business in Dubai

1. Tax Incentives and 100% Profit Repatriation: Currently, there are no taxes on income and profits in Dubai, which also allows full repatriation of profits, an invitation to investors from all over the world.
2. Strategic Location for Global Trade: Since Dubai is situated in Asia but close to Europe and Africa, there are great prospects and conveniences for such concerns as trade and movement of goods.
3. World-Class Infrastructure and Business Ecosystem: As for the resources Dubai boasts spectacular internet connection, packing logistics centers, and exceptional transport connection, which makes it one of the most suitable places for business processes.
4. Ease of Doing Business: Dubai’s government has been improving regulations to ease the business entry process and it was ranked among the best globally regarding ease of doing business.

How clicks2compare Can Help with Business Setup in Dubai

Distractions and information overload are common during the setup process of a new market business. It’s very simple to use and offers detailed setups for all the various procedures involved in startup formation in Dubai for the businessmen and business women. Here’s how clicks2compare can help:

1. Expert Guidance on Choosing Jurisdiction and Legal Structure: In the case of free zone, mainland or offshore management, the team of the clicks2compare offers the best advice on the jurisdictions appropriate to the business activity and legal conformity of the local regulations.
2. Streamlined Trade Name Registration and Licensing: With regards to trade name registration, licenses and permits clicks2compare plays a critical role in helping in this process. This makes it easier and quicker for you to start your business as they have dealt with various licensing procedures in Dubai.
3. Office Space Solutions Tailored to Your Business Needs: Nowadays, it is essential to search appropriate office for working, especially for the start and the freelancers. clicks2compare team with property providers to provide variable and reasonable commercial space for rent in free zones as well as in the main city of Dubai.
4. Visa and Sponsorship Support: The process of dealing with visas is actually not very easy. If you or any of your employees require investor or employee visas to legally reside in Dubai, clicks2compare will make the process easier—easing you and your team’s way into Dubai.
5. Compliance and Documentation Assistance: It is crucial, for instance, to make sure that all the paperwork, every license, and registrations, are correct and compliable in the future. At clicks2compare we manage the minutiae for you through our legal and compliance department so you can concentrate on business development.

Through engagement with clicks2compare, it becomes easier for businesses to get a customized approach to setup hence eliminating business risks and making the entry into the Dubai market easier and affordable.