Business Startup Dubai | 5 Do’s And Don’ts To Make Your Business Profitable
Business startup Dubai: When you start a Dubai business you are better off if you take the advice given below
Business startup Dubai has always been encouraged in Dubai. No wonder Dubai is starting to attract the eye of business investors since it started to show its economic stability to the international market.
Please invest 2 minutes of your time to watch the business startup Dubai video below. It spells out how you can benefit. Or if you prefer to read, then feel free to skip the video and go straight to the text below:
Current market trends in Dubai offer plenty of opportunities for foreign investors to tap into imports and export of commodities, as well as taking advantage of the growing tourist traffic of the city for an almost unlimited number of potential clients and customers going your way.
You need to get acquainted with the various facts associated with a business startup in Dubai and avoid the problems mostly encountered while launching a profitable enterprise in the United Arab Emirates [UAE].
That means there are a few Do’s and Don’ts that you’ll want to take care of.
Business Startup Dubai
5 Do’s in business startup
1. Select a local sponsor, a UAE national for local business startup
You need to get acquainted with the various facts associated with a business startup in Dubai and avoid the problems encountered while launching a profitable enterprise in the UAE.
There are plenty of business opportunities available in Dubai, as well as in the other Emirates of UAE. However, if you really want to start a business that must exploit the potential of Dubai then you need a locally registered LLC business.
A UAE national must be taken as a 51% partner who is called a local ‘sponsor’. A local company provides the freedom to locate a business anywhere in the city. For a business startup in Dubai, this is a boon because it affords the best choice of locations to suit your budget.
A sponsor must be paid a yearly fee which can be negotiated. To develop a rapport with your sponsor so that he is ready to help you in sorting out any problems you may face along the way with authorities.
2. Select a Free Zone if you wish to own your business 100%
Keep in mind that the only way for a business startup in UAE to start without taking a UAE national acting as your partner is to locate your business in one of the Free Zones. This is not practical for businesses that must be in city markets like restaurants and retail stores. Also, businesses that work with the government have to be registered with a local sponsor.
Not to mention the fact that purchase or rental in a Free Trade Zone district might be high for your budget to handle.
For a business startup, Free Zones offer three great advantages
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- 100% ownership
- Speedy startup
- Duty-Free customs boundary.
3. Select a Location that optimizes suitability, convenience, and costs
Another important step in planning a business startup in Dubai is to determine the most suitable location for the business. Setting up a profit-based enterprise in the city wouldn’t do you much good despite the growing economy if you’re customers or clients can’t reach you.
You need to set up your business in an area that is most profitable for your business or most convenient for your business. A location in the right city can be selected for a shop or an office is most known for the type of product or service you are dealing with.
If you are planning a Free Zone company then you must make the selection based upon the criteria of distance, costs, and if it is suitable for your product, business model, and trade requirements.
A tenancy contract must be concluded. If you’re aiming to start a small-scale enterprise, then the basic amenities, like telecommunication, storage, and space inside the establishment is the basic concern that must also be satisfied. Other services available in the commercial property can vary greatly.
4. Confirm your Visa eligibility and requirement
For a business startup in the UAE, a visa permitting you and employees to live in UAE is essential to run your business.
Visas are allowed for almost all businesses.
However, their number varies according to a variety of criteria such as the size of the office, nature of the business, the category of the employee, or the investor.
If your business startup in Dubai is a local company then you definitely need to work with your sponsor to get your visas – at least the first time.
Business visa application in Dubai is not as strict as most would think since the bureaucracy is quite open to foreign investors planning to set up shop in the city — any business is good business is the motto here.
However, you need to have your sponsor apply a visa for you as the investor of your business startup.
Aside from your passport and other legal requirements, a letter is also needed from your sponsor to highlight his or her, or your personal information, the reason for the visa application, and the likes before processing.
Subsequently, you may be allowed to apply for the visas of your employees if your sponsor agrees to give you the authority.
5. Hire a registration agent to take you through the process of business startup
Hiring a business advisory firm to register your business startup may be your best option.
These consultants will not only hold your hand right through the setup process but will also actually register the company for you. And will help with opening your bank account, arrange for an auditor, do your renewals and offer you nominee services.
You may find their expertise in dealing with the local government bureaucracy and with Free Zone Authorities to be of great help in planning and itemize your business startup costs.
In most cases, these firms offer a team of experts to plan out your company registration from scratch — this includes the strategies you need to follow in order to smoothly set up your business, itemizing potential costs, offering licensing and location options, coming up with solutions for potential business hurdles, and so on.
Also, they will take care of all the necessary requirements to help you to have your business registered legally with minimal problems on your end.
Financing is usually not available to business startups. If you are unable to pay for the start-up costs, perhaps you should wait before taking this step.
Business Startup Dubai
5 Don’ts in business start-up
1. Do not register your company in a Free Zone without taking a look at the available office sizes and preconditions
Often the published information for a Free Zone gives a wide choice of offices. The actual availability keeps changing. A business startup normally looks for the cheapest option.
It is probable that when you actually go for registration of the company you may find that only certain office sizes are available. This will throw your budget into disarray.
It may be too late to change your Free Zone then. Or it may happen that certain offices allow only 1 visa that too only for investors and not for the employees. So do not proceed until all aspects of the office are confirmed.
2. Do not make firm plans based only on published information
Before you finalize the plans for your business startup it is prudent to confirm the validity of the published information.
Rules change in Free Zones and also in the local Department of Economic Development for business registration.
Do not go ahead until you have confirmed your assumptions through a business set up consultant or by actually contacting the relevant authority.
You may discover that some papers may be needed or that some nationalities need special permissions or that some requirements may be waived if you request or negotiate.
3. Do not choose a license category blindly without confirming if it allows your business model
In the UAE, it is not difficult to devise a business model that will not need a change. Very often much change or at least some tweaking is needed.
Make wide possibilities and confirm whether your planned license category allows you all the activities that will be likely in the business model you are planning. Do not choose a license category that is too narrow.
4. Do not open a bank account without confirming the bank charges
Banks levy varying charges. For a business startup, these can amount to a substantial sum for a bank-dependent operation. Always confirm the requirements and charges beforehand. Do not choose a bank based on only the reputation.
5. Do not sign a sponsorship with a local sponsor without a written legal agreement
Your business startup may need a lot of support initially. A local sponsor may want to charge separately for some services.
Do not go ahead with sponsorship until both sides have agreed on what to expect from each other and a written agreement is drawn up and attested in the local court. Do not rely only on verbal understanding.
Business Startup Dubai
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