Any business owner will tell you that it is not easy to start a business. There are many things to consider before you start your company. One of the most critical considerations is location. Dubai has become an increasingly popular place for setting up businesses in recent years. People choose to set up their companies in Dubai because of the growing economy and opportunities for young talent. These talented individuals who want to work at competitive salaries can take home more of the money earned from your company profits while saving on costs associated with running the business. Below are some of the basic steps to set up a business.
Basic steps to set up a business in Dubai
There are some basic steps that you will want to consider before setting up your business in Dubai. It would be best if you got a good lawyer who specializes in helping people set up their companies so they can get all the paperwork in order. The next step is to get an office space ready for your team so they will meet up every day.
If you want your business to offer employees incentives such as bonuses and healthcare plans, you will need to get an Ejari contract so that all the leases are legally binding. It is essential to growing your Affordable Company Setup in UAE because it protects you and your employees.
You will also need to set up a company bank account in Dubai so that you can transfer money back and forth from your business accounts. These are some of the basic things that most people think of when considering setting up their company in Dubai.
Approval for Business Name:
This step requires checking with the Trade License & Consumer Protection Department (TLPC) and the Dubai Police General Headquarters (DPGH). If your company name does not get approval from either department, you need to change it before moving forward with opening a bank account for your new business.
The legal structure of the company in Dubai:
Depending on your location and type of business, there are rules to set up your business setup in UAE legally. And For example, if you plan on a legal consultancy firm, you may want to consider having a Limited Liability Partnership (LLP) company, which is the default business structure in Dubai. There are four main types of companies to set up in Dubai:
- A) Sole Proprietorship – This is the simplest form where you can operate your business by yourself. It’s easy to open and run, but it doesn’t provide any legal protection for running a business.
- B) General Partnership – There is no limit on the number of partners, a general partnership is usually set up between business associates.
- C) Limited Liability Partnership (LLP) – This is an ideal company structure for young entrepreneurs as it provides limited liability protection to your personal assets if your business goes bankrupt or loses money in other ways.
- D) Private Company – It’s the most common company structure in Dubai, and it requires at least two shareholders who operate as directors, secretaries, and chief accountants.
- E) Public Company – This type of business has more than 50 percent shares owned by public investors and allows for raising capital from third parties (i.e.,
Applying for a trade license:
The next step is to apply for your trade license. If you already have a sole proprietorship or general partnership, then you can just register the business at any of Dubai’s free zone companies such as DIFC and JAFZA, which are open 24 hours per day, seven days per week. There are four types of trade licenses in Dubai:
- A General Trade License (GTC)
It is for businesses with UAE national employees. It requires at least three local staff members and allows you to run your business across the country.
- Authorized Economic Operator (AEO) license
It provides certain customs privileges, such as faster processing of cargo through designated ports or airports in Dubai.
- A Commercial Registration Certificate (CRC)
It requires businesses with less than 50 percent Emirati ownership to start a business in Dubai.
- Self-Employed Persons License
It is specifically designed for freelancers who don’t have any employees or run their own company. This business license is required for foreign artists, musicians, and athletes who visit Dubai on a temporary basis.
Local support:
It is mandatory to have a local agent, who will be based in Dubai, to represent the business locally. This local agent should have a physical office space where they can meet with clients and employees of your company.
These agents are paid through an agency agreement between you as the owner and them for representing your business locally on all matters that come up from taxes or legal questions about contracts. Your local agent will also be able to manage your employees and oversee the daily operations of your business.
If you want to open a bank account in Dubai, this local representative needs to have an active role because they need to sign all contracts with banks on behalf of your company. This means that any legal or tax issues must go through the representative.
Conclusion:
Express Pro is here to help you. If you are interested in pursuing one of these business opportunities, get in touch with us today!
