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How To Start A New Business In UAE For Smooth Operations?

Dubai in UAE is now becoming a leading business investment hub for investors because it offers the best opportunities for them. However, starting a new business in Dubai involves several things and investors should be aware of them in detail. New businesses willing to set up their operations in UAE should keep certain things in mind that help accomplish their goals significantly. Moreover, they can ensure high growth levels in markets 

11 Things to keep in mind before starting a new business in UAE 

1. Knowing the economic zones

Before setting up a business in Dubai, an investor should know the types of economic zones available in the UAE. Free zones and offshore zones are the two types of zones that let investors start their businesses. A free economic zone is suitable for businesses that want to enjoy 100 % ownership with 0% taxation benefits. On the other hand, a business cannot trade goods directly in UAE markets. 

An offshore zone permits investors to do business outside UAE and not inside. Investors need sponsorship when they choose an offshore zone that restricts foreign ownership to 49%. Furthermore, offshore companies can also register their businesses in a free zone and they can enjoy the same benefits. It is wise to choose a free economic zone instead of an offshore zone to gain more advantages.

2.  Types of license 

A company should know the types of licenses before launching the operations in UAE to accomplish its goals. Commercial licenses, industrial licenses, and professional licenses are the three types of licenses available in the UAE. A commercial license is necessary for a business that buys and sells goods. Companies engaged in manufacturing activities should apply for an industrial license. Service providers require a professional license when they want to plan their operations. 

3. Understanding the nature of a business 

A company should understand the nature of business properly which helps apply for a license as soon as possible. Anyone who is not sure of their business type should visit the DED website to know more details. Another thing is that it provides ways to plan everything that suits a business. Investors should know the type of entities they wish to apply for. Some of them include proprietorship, partnership, LLC, private limited company, public sharing company, joint venture, etc. 

4. Choosing a company name 

A company or business should comply with UAE’s naming conventions while choosing a name. This is because they are very strict and investors should know whether they follow the rules and regulations correctly when selecting a name. Investors should seek support from set-up experts when they want to know about name conventions. Also, they can avoid disputes and other problems to witness peace of mind. Entrepreneurs and investors should select a name that suits their business after consulting with experts. 

5. Applying for initial approval

Investors should apply for initial approval with the necessary documents when they want to set up a business in Dubai. They should ensure that the Dubai DED has no objections while starting a business. At the same time, an investor should submit all documents online, in person, or through a third party. Since the documentation process is an integral part of a business formation, investors should consider working with a business partner to handle complex issues. 

6. Opening a corporate bank account 

Investors should open a bank account after receiving a business license from government authorities. Dubai is home to many local and international banks that aim at offering the best services to customers including investors. A company can choose a bank after making a detailed study of banks. 

7. Understanding the visa process 

A business or company should understand the visa process when launching its operations in Dubai. Many free zones provide methods to process the applications of staff and workers to get visas with ease. However, entrepreneurs should know the norms and other things before processing the visas that help accomplish goals to a large extent. The UAE visa process involves four stages and investors should know them with more attention. 

8. Setting up a business office 

All companies and businesses should have a physical address while launching operations in Dubai. Setting up a company or business in a free economic zone allows investors to find spaces without any hassles. Corporate companies willing to set up their business in UAE should work with a business partner to find commercial properties which suit their operations.

9. Knowing the laws 

When starting a business or company in Dubai, investors should understand the laws in detail to minimize disputes and other problems. An investor should know about business and employment laws in detail that help plan operations with ease. Working with a strategic business partner enables investors to hire employees and plan business operations as per the laws. The employment laws are very strict in Dubai and investors should ensure that they comply with them to lower legal issues and other problems. 

10. Applying for final approval 

Investors should apply for final approval with proper documents, local addresses, and other things. In some cases, they need to submit a license approval obtained from respective authorities. Investors should process the documents carefully to avoid rejections and other issues. 

11. Working with a reputed business partner 

Company formation in Dubai involves several challenges and investors should handle them effectively. Therefore, entrepreneurs and corporates should work with a business partner to minimize unwanted complications. A business partner will take care of all activities in the company formation process with professional teams. Investors can save time and money when they work with a business partner. They can understand the steps involved in a business setup in Dubai which gives ways to accomplish their goals. When hiring a business partner, investors should consider reputation and other factors in mind. This helps reduce risks and other problems in the setup process to ensure smooth operations. Another thing is that investors can focus on their objectives when working with a business partner. A business partner provides ways to get the jobs done quickly with experienced teams.

Ahsan Khan
Ahsan Khan
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