How To Start A Business In Dubai
Steps for starting a business in Dubai
Research: The first thing that you need before thinking of starting a business in Dubai, is to research the business/cultural laws and customs that need to be observed when living and working in Dubai.
Although Dubais population consists largely of foreigners, it is important to remember that this is still an Islamic state, that observes Islamic laws. There are many things frowned upon here that wouldnt necessarily be back home.
It is important that you get up to speed on learning what is and what isnt appropriate in Dubai, to avoid getting on the wrong side of the law. Did you know for example, that you could get sent to jail if you issue a cheque that bounces!
Is it necessary to have a local business partner? If you are thinking of starting a business outside of Dubais several designated freezones, then you will need to have a local UAE national as a business partner. By law, they will be required to hold at least 51% of the business in their name.
As part of the deal, you will likely have to pay your partner an annual fee. In some cases, your partner may require a percentage of the profits in your business. You can however, get your partner to agree to and sign a legal document that indicates that you are indeed the rightful owner of the business in spite of the fact that they will have at least a 51% shareholding in the business.
To avoid giving up ownership of your business, you can opt to start a business in one of Dubais several freezones instead, which exempts you from needing to have a partner. Doing business in one of the freezones means you will be entitled to own 100% of the business.
An alternative approach could be to buy a business that is for sale. This can be far simpler than creating a new company. All you have to do is buy the business from the current owner, sign some papers that shows ownership of the business has been legally transferred to you and that you are now the rightful owner.
Register your Business: It is important that you list all types of activities that your business will be engaging in, including whether the business will be individually held in your name or as a partnership, the business trading name, and the nationality of the business owners. Once you have completed the business registration application, it will need to be submitted to the Department of Economic Development for approval.
Resources: You are required to show proof to the Ministry of Commerce that you have sufficient financial resources to start a business in Dubai. The amount required to invest ranges from $10,000 to $50,000.
This amount is used as a guarantee that you will be able to meet your business debts, however, you will be able to withdraw this amount soon after.
Having completed the above steps, you are ready to start your business in Dubai and begin trading. You can get your partner or company to sponsor you, which will allow you to reside in the country legally. If you employ locals, you will have to register them with the Ministry of Labor as required by law. This involves submitting copies of their National ID and other supporting documentation.
Remember that you need to follow the rules and laws to ensure that you do not find yourself on the wrong side of the law while in Dubai. It is important that you use the services of a solicitor from the start to ensure you have satisfied all of the requirements to legally do business in Dubai.
Research: The first thing that you need before thinking of starting a business in Dubai, is to research the business/cultural laws and customs that need to be observed when living and working in Dubai.
Although Dubais population consists largely of foreigners, it is important to remember that this is still an Islamic state, that observes Islamic laws. There are many things frowned upon here that wouldnt necessarily be back home.
It is important that you get up to speed on learning what is and what isnt appropriate in Dubai, to avoid getting on the wrong side of the law. Did you know for example, that you could get sent to jail if you issue a cheque that bounces!
Is it necessary to have a local business partner? If you are thinking of starting a business outside of Dubais several designated freezones, then you will need to have a local UAE national as a business partner. By law, they will be required to hold at least 51% of the business in their name.
As part of the deal, you will likely have to pay your partner an annual fee. In some cases, your partner may require a percentage of the profits in your business. You can however, get your partner to agree to and sign a legal document that indicates that you are indeed the rightful owner of the business in spite of the fact that they will have at least a 51% shareholding in the business.
To avoid giving up ownership of your business, you can opt to start a business in one of Dubais several freezones instead, which exempts you from needing to have a partner. Doing business in one of the freezones means you will be entitled to own 100% of the business.
An alternative approach could be to buy a business that is for sale. This can be far simpler than creating a new company. All you have to do is buy the business from the current owner, sign some papers that shows ownership of the business has been legally transferred to you and that you are now the rightful owner.
Register your Business: It is important that you list all types of activities that your business will be engaging in, including whether the business will be individually held in your name or as a partnership, the business trading name, and the nationality of the business owners. Once you have completed the business registration application, it will need to be submitted to the Department of Economic Development for approval.
Resources: You are required to show proof to the Ministry of Commerce that you have sufficient financial resources to start a business in Dubai. The amount required to invest ranges from $10,000 to $50,000.
This amount is used as a guarantee that you will be able to meet your business debts, however, you will be able to withdraw this amount soon after.
Having completed the above steps, you are ready to start your business in Dubai and begin trading. You can get your partner or company to sponsor you, which will allow you to reside in the country legally. If you employ locals, you will have to register them with the Ministry of Labor as required by law. This involves submitting copies of their National ID and other supporting documentation.
Remember that you need to follow the rules and laws to ensure that you do not find yourself on the wrong side of the law while in Dubai. It is important that you use the services of a solicitor from the start to ensure you have satisfied all of the requirements to legally do business in Dubai.
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