The UAE economy is one of the fastest-growing in the world, boasting numerous industry opportunities. Due to its strategic location, UAE attracts significant foreign investments.
Business setup in Dubai UAE can be relatively straightforward and requires just a few key steps. To get started, clearly outline your goals and seek professional advice before beginning.
Choosing a Legal Structure
Selecting the ideal legal structure for your business is one of the key decisions an entrepreneur must make, as it will influence liability levels, how you raise funds and its taxation implications.
Limited Liability Companies are the go-to choice for foreign entrepreneurs looking for maximum flexibility while protecting personal assets of shareholders.
Civil companies are specialized forms of partnership designed for professionals like engineers, doctors and lawyers. This structure adheres to regulations specific to these professions while offering the benefit of sharing expertise among multiple parties without incurring minimum investments and full repatriation of profits.
Obtaining a Business License
A business license is a document that authorizes the legal operations of businesses within specific geographic jurisdictions, making them essential to successful operations in most types of businesses. Unfortunately, however, acquiring one can often take much more time than expected due to various factors that can alter its timeline such as type and location of operations.
UAE offers multiple business license options. Your first step should be deciding the legal structure. There are free zone companies and mainland businesses, each offering unique regulations.
Step two is to reserve a trade name. Step three involves submitting the completed application form and paying any applicable fees; these could include initial application fees, renewal fees, and extra permit costs.
Obtaining a Business Bank Account
An independent bank account for your business allows for easier tax reporting, provides greater liability protection, and may make getting loans or lines of credit easier.
Many banks now allow you to open a business bank account online; however, some still require that you visit their branch with the necessary paperwork and information. To avoid delays during application processing, make sure that all relevant paperwork and information are ready when applying.
Your business should request both a chequing account, which can be used for daily transactions and savings accounts, and a credit card that can help build its credit history.
Obtaining a Local Service Agent
Local service agents in the UAE represent foreign business in UAE when communicating with government departments. Unlike an LLC sponsor, however, local service agents take no legal responsibility or share in its profits; for a set annual fee, they provide their services for your company. Their wide network across service centers, translation houses, and typing centers often keeps them apprised of any changes or new requirements as soon as they arise.
Local service agents are invaluable when it comes to cultural understanding, ensuring that foreign businesses follow all applicable procedures to avoid fines or penalties and save themselves both time and resources by handling bureaucratic processes themselves.
Obtaining a Physical Address
Your business deserves an official location to differentiate it from home-based and online businesses, as well as protect your privacy and enhance your professional image. By having a physical address for your business, it establishes its credibility within its respective industry and can enhance its professional image.
Physical addresses refer to geographical locations that are overseen by local authorities, while mailing addresses are overseen by USPS or other mail service providers. Physical addresses frequently come equipped with Digital Mailbox service from iPostal1, which secures and holds onto packages until it’s time for collection or forwarding.
RV’ers, vacation homeowners, frequent travelers or anyone concerned about porch pirates taking their mail while they’re gone will find this tool invaluable. Additionally, it allows remote management of mail via mobile device or computer if required.
Southbridge Legal in Dubai’s Creative City Free Zone
Southbridge Legal offers comprehensive legal services to both businesses and individuals, with attorneys specializing in several practice areas including intellectual property, real estate law, business litigation and litigation, estate planning/probate services/tax law advice/family law issues/etc.
Dubai South Free Zone is an incubator designed to foster creativity in creative industry professionals, offering them an ideal setting where their talents can flourish and their entrepreneurial aspirations are realized.
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