A guide to setting up a business in Dubai

A guide to setting up a business in Dubai

One of the most quickly emerging business hubs in the world is that of Dubai. If anything, the Emirate is packed full of business opportunities featuring state of the art facilities that can be used by both local and international businesses. Leading with a dedication to innovation, Dubai is definitely an important part of the business world. The best part is that the business regulations here are rather lax, which is the reason why investors are so attracted to the Emirate.

As an international city, Dubai is more on the multi-cultural side and people from all over the world tend to visit it on a regular basis. This is yet another reason why investors wish to tap into all that this beautiful country has to offer. When establishing a business in Dubai, it is necessary for you to take on a local sponsor, who, without even making an investment, will own 51% of your business. It will also be necessary for you to make yearly payments to him. If this is not what you want, then it is best for you to opt for an RAK free zone company formation instead. Before deciding to establish your business in Dubai, you will have to acquire detailed information about the minimum capital requirement, number of shareholders and the overall business incorporation processes etc.

Although Dubai has a rather open environment for foreign investors, the fact of the matter is that there are certain requirements that need to be fulfilled for you to be able to setup your business there. To be able to enter Dubai, you are required to have a local sponsor or service agent who will take your responsibility. If you wish to establish your business in the mainland, then either a local resident or the owner of a UAE based company has to act as your sponsor. However, if you set up your company in a free zone, then the free zone itself will act as your sponsor and there will be no need for you to find one on your own.

Apart from that, to get started with your business in Dubai, it is vital for you to have a valid business license that has to be acquired through the administrative authority known as DED or Dubai Economic Development. With time, this particular department will also need to be approached for you to get your license renewed or upgraded. Visit this page for more information in this regard.