For an entrepreneur with high business aspirations, Dubai is the perfect place to start a company. The strategic location, excellent infrastructure, ease of doing business (The UAE has been ranked 16 in World Bank’s 2019 index), stable government policies, and robust economic measures like Anti-money Laundering Laws, Economic Substance Regulations (ESR), and National Economic Register (NER) to match with the global advanced economies have made the emirate the most preferred business location in the entire middle east. If you are still undecided, just look at how Dubai has easily transitioned back into business after the COVID-19 pandemic when major economies stumbled.
Also read: COVID-19: UAE Government Initiatives & Business Stimulus Packages by Various Freezones
However, this doesn’t mean having a business setup in Dubai ensures the success of your company. There are certain prerequisites for a successful company formation in Dubai and they can be summarized in 5 key steps.
Following these steps with the professional assistance of the best business setup consultants in Dubai is important to successfully incorporate a company in Dubai.
1. Design a Robust Business Plan
Startup entrepreneurs rack their brains for months or years to come up with an innovative plan to pitch before potential investors. However, there are certain parameters to ensure that your business plan is strong enough for a successful company formation in Dubai. The business plan must be relevant in the current market; should be in demand; must be viable for the long-term and should cater to the necessities of the consumers.
Also read: Startups Need to Watch Out the Changing Business Environment in the UAE
If you are confused about this just take the example of top Sunrise Sector businesses during the Post Covid-19 era in Dubai such as e-commerce, Fintech, EdTech, etc. These businesses are in tune with the current demand in the market and are viable in the long term as well. Consult the best business setup consultants in Dubai to check whether your business activity is on the list of concerned licensing authorities.
2. Right Funding
The low-cost business setup in Dubai is the key factor that attracts investors from across the world especially novice entrepreneurs. However, SMEs and startups often face some difficulty in finding funding in Dubai due to limited financial access. To their relief, there are many government bodies such as Dubai SME that offers to fund for the SMEs and startups. You can also turn to Fintech platforms that help you connect with a network of investors. It is recommended to have a look at the various government-sponsored initiatives before initiating the process of low-cost business setup in Dubai.
Also read: Why Should You Setup a Business in Dubai?
3. Right Jurisdiction
Finding the right jurisdiction is one of the critical decisions you have to make while commencing the process of business setup in Dubai. You can either choose for company formation in Dubai free zones or in the mainland. This is a strategic decision as both forms of business setup in Dubai is governed by a different set of rules and regulations. By setting up a business in Dubai mainland you can trade directly with the UAE market and can have a number of business activities to choose from. However, you have to appoint a UAE national as a local sponsor who holds at least 51% of shares in the company.
On the contrary, if you are opting for a low-cost business setup in Dubai, then free zones are the viable option. The free zones offer easy business setup procedures along with advantages like 100% ownership and total repatriation of earnings. However, the company formation in Dubai free zones doesn’t allow you to trade in the UAE market. Free zones are best for activities like imports or re-exports where your clients will be based outside the UAE. An activity like e-commerce is best suited for the free zone company formation in Dubai. You will require the assistance of business setup consultants in Dubai for making this crucial decision of choosing the right jurisdiction.
4. Properly Handling Official Procedures
The process of business setup in Dubai is governed by a properly streamlined system of laws and regulations. Mainland and free zones have different regulations to set up a business in Dubai. You need to be cautious about adhering to the legal requirements for getting your company incorporated in Dubai without any delay. Special approvals will be required if your business activity constitutes special activities such as Legal, Audit, Banking, Transportation, Insurance, Tourism, Engineering, and Oil & Gas. In such cases, it is better to hire the best business setup services in Dubai who are well-versed in the laws and regulations in the UAE.
Also read: 5 Fundamental Factors to be Considered Before Setting up a Business in Dubai
5. Ensuring Regulatory Compliance
The UAE is an open economy and encourages entrepreneurs across the world to set up a business here with a favourable tax regime and less stringent laws. However, the UAE has implemented certain laws to ensure that the investors are not making a profit by conducting harmful financial activities. In this regard, the UAE has introduced regulations like Anti-money laundering (AML), Economic Substance Regulations (ESR), and the National Economic Register (NER). Before initiating company formation in Dubai you have to note that you will do your best to comply with such regulations.
How Jitendra Business Consultants (JBC) Can Help?
Setting up a business in Dubai is the most lucrative and low-cost option for entrepreneurs in comparison with other global economies likes Singapore and Hong Kong. The streamlined procedures of business setup in Dubai make it easy for foreign investors to launch a company. However, right from choosing the business jurisdiction to obtaining a trade license in Dubai, the investors need the professional assistance of the best business setup consultants in Dubai. This is because starting a business in Dubai is a strategic decision and most investors will be unaware of the laws and regulations. This is where seasoned business setup services in Dubai such as Jitendra Business Consultants (JBC) come in handy for entrepreneurs.
Also read: Why do You Need to Hire Business Setup Consultants in Dubai, UAE?
JBC has a team of highly skilled business setup consultants who are well-versed in labour laws, immigration laws and are experienced in handling the government authorities. JBC offers services including drafting of Memorandum of Association, processing of visas, and ensuring regulatory compliances. By availing of the top-notch business setup solutions of JBC, the investors can successfully incorporate their companies in Dubai in peace of mind.