Being one of the rapidly growing economies in the world, Dubai is the ideal place for expats who wish to progress in their careers. The unmatched opportunity to develop one’s horizons together with the possibility to earn well is what attracts the majority of expats to Dubai.
There are some main points to be considered by those who are planning to start a business in Dubai. Bear in mind that Dubai welcomes overseas investment. Besides, Dubai is quite liberal in terms of business regulations. Here we have summoned up some of the major aspects you must think about before setting up business in Dubai:
You should be knowledgeable of region:
Be ready to do extensive study about the business area that you intend to work in. You need to have a practical business plan that includes a research of market trends, the struggle and your estimated results. You need to prepare yourself to explore the required investment from your personal sources or by bank and by any other means, especially if you are unaware to region and not having track record. Moreover, a reliable plan may entice local support, probably government assistance.
Law needs you to have local partner:
A person, who has the large part of interest, can regulate the business that involves disolving it if required. Partner will possess 51% of company, so being able to proceed it all. No matter, if it is a firm or a person, your local partner is not required to take part in initial investment or participate financially. There are numerous ways for compensating a partner. The partner requirement is now being reviewed in several states, to boost foreign investment.
If you wish to hold 100% of the company and don’t prefer to have local partner, mere choice is to commence a business in the Free Zone. Rent charges in Free Zone are expected to be much more than normal rent prices in the city.
The Dubai government has formed free zones particularly to boost investment. Companies that are set up in free zones have a different legal structure and are taken as offshore companies for legal cause. These companies are suitable to businesses who prefer to use Dubai as a regional base for manufacturing and distribution.
Don’t allow these cautions put you to an end. Numerous people have established successful, highly lucrative trades in Dubai. Quite new and innovative operations are being promoted by the system and your partner may be actively supportive. Manufacturing industries and export are heavily supported by the govt. If you form a business in a free trade zone, it’s granted exceptions from export and import duties, property license fees, building and land tax, commercial taxes, and restrictions on the transference of capital capitalized in the zone.
Alex Aron who likes to write on travelling, business and tech industry is a passionate traveler. Aron is now working under a UAE Consultants which is a Dubai free zone company formation services and consultancy company.