How to setup your business in Dubai
If you want to have complete ownership of the business, then you should consider setting up your business in a free trade zone. Each zone has its line of business and licensing procedures. So, you have to find out which zone provides the right platform for your type of business. UAE has about 45 free trade zones. Surely, some of them will be more favorable to you. Here are some steps to take for company formation services in Dubai.
Usually, the memorandum of Association lists the minimum share capital for each business. When you are setting up in Dubai, it is not mandatory to pay the minimum share capital.
Get a license
Just like in any other region, you surely need a license to operate any business in Dubai. But your type of business will determine the type of license you are given. Whether it’s an industrial, professional, or commercial license, it will spell the direction for your operations. Some other types of business may require additional approval from government authorities. Activities like legal consultancy, veterinary, jewelry trade, and food trading will need additional approvals. You can look up the DED (Department of Economic Development) e-portal for a list of business areas you can select.
The business name
This is an integral part of the business’s legal composition. Generally, the name of the business should reflect the type of business. The DED has all the information you will need concerning rules for business names.
Composition of the business
There are certain rules that guide the composition of your business, depending on the type of business and the location. For instance, a legal consultancy business can either be a standalone company or a brand of an existing company. It cannot operate as a sole proprietorship in UAE.
Remember that there are different restrictions placed on different types of business by each of these free zones. So, it’s important to check with the DED website to see the different structures for each business allowed.
You are required to employ at least a manager who will be in charge of operations for the business. You have to do this before the DED approves your registration. But it’s not in all cases you are required to hire a manager. In some instances, you may be allowed to engage contractors but not allowed to hire staff. That is why you need to find out all you can from the respective business registration authorities before you set out.