Two main ways to Start A Business in the UAE!

Introduction:
Going for a new setup in UAE will require great thinking and insights, especially if one is not a local operator. All the steps involved and compliances must be considered before one shoots. Markets here are highly dynamic and promising; the potential for growth is exceptional too. 

starting a business in Dubai

There are two core ways in which one can initiate the proceedings and launch a new venture.
  1. The setup can be in conjunction with a partner that is local and will own 51% of the venture. This setup is known as limited liability company (LLC).
  2.  Establishing a firm with the help of one of the many available free zones, intended mainly for foreigners. This type enables one to own the 100% ownership of the firm.

Required Capital:

One may consider any one of the above while starting a business in Dubai. The costs of course will vary, i.e. for a limited liability company for example; one may require a sum ranging from AED 30K to 60K. Additional costs may incur if one outsources the paperwork to third party service providers in the form of professional business consultants. This approach will enable one to save time and personal efforts.

Options available in the free zones may also vary in costs and efforts. There are free zones that normally just deal with individuals that are associated with some creative industries, for example media companies. 

The required amount of sums in such free zones may settle between AED 25 to 35K. Irrespective of the type of option selected by one, a sum similar to the initiating cost may be payable each year for the sake of renewing the business license.

Type of Visas:

Once you have figured out how to start a business in Dubai, you will need to consider the Visa specifications that are also different for such free zone licenses as they may limit one’s activities depending on the type of free zone selected by them. One may not be able to open setups like a retail outlet after opting for a free zone, unless the outlet setup is within the selected free zone. 

For a limited liability company, the activities allowed are limited in nature too. One as an entrepreneur will need to show capital adequacy evidence in the bank. Business license have associated work visas with them which may vary in number and nature, therefore it is crucial to ensure the type of residency visa that are available on offer with the type of business license you are planning to apply for.

how to start a business in Dubai

Conclusion:

Setting up a new venture may require a serious consideration and a full time backup offered by industry smart business consultants that are operating locally. Most of them are well versed with the local market trends and can make things easy for one while one is aiming to get on board in such promising markets with a greater and sound impact.

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