Establishing a business, whether being a small consultancy or a huge manufacturing unit for producing goods. Irrespective of the type of activity and industry niche you have chosen for the startup, there are a number of structures you can choose to establish your firm. Always choose the best which is executing the current needs of niche. You can always change the business structure throughout the entire span. Startups are initiated to grow and progress to earn profits. Their needs can be fluctuated accordingly due to expansions and reduction operations. You can freely choose the most suitable according to your needs. Whether you are setting up a commercial company, professional services or an industrial group, without choosing a suitable structure, you will not be able to define your operations and functions. Be ready to take additional approvals, if you are going to trade food and jewelry or you are planning to run the legal consultancy and any kind veterinary activities.
Here I am sharing few major steps entrepreneurs should follow to establish a Dubai business setup. The Department of Economic Development (DED) enlisted more than 2100 commercial activities you can choose from. Those who are choosing any of the freezone in Dubai to establish their unit should also consider the FZ specific rules and regulations to obtain formal approval to initiate a startup.
Decide ownership empowers foreign nationals to enjoy 100% proprietorship. After considering the type of service/product, candidates select specific freezone to establish their setup. As every zones support specific kind of activities. In contrast to that, if the capitalist requires a license to operate his firm locally, DED is authorized to issue the same.
Choose a legal form is another important aspect businessman should pay attention while planning to initiate their setup. After considering the type of commercial activity they may either select to open a branch office or stand-alone company. Also, check the regulatory policies of the FZ to confirm whether it’s supporting this structure or not. For example, Legal consultancy services can only be inaugurated as the branch or stand-alone companies. Sole ownership is not allowed for such services.
Select Trade Name is also a crucial and legal component of establishing a setup. It should be selected carefully to promote the nature of products and services. As long as the capitalists are not opening a branch office of another company, it is necessary to select a unique name of your firm.
Share capital is decided in the Memorandum of Association in the company meeting. It is the amount, which company earns in exchange for issuing ownership interest in the form of shares.
Pick up the premises, soon after completing the legal procedures, it is necessary to shortlist few offices to estimate costs other details to finalise the space. If any of the freezone I selected, FZ management will guide entrepreneurs about everything from water, electricity, internet and other amenities for establishing a new framework
Hiring employees, the next step is to appoint managers and other employees to oversee the functions and operations. Particularly manager should be finalized before starting the company registration process. DED allow all commercial business owners to hire employees, however, home based businesses with Intelaq license are not allowed to hire a workforce. But they are allowed to coordinate with contractors. If a unit is located in an FZ, check out specific rules and regulations.
Local support is the must, in order to obtain any kind of license from DED, local partnership, sponsor or an agent is essentially required for all foreign nationals looking to establish a setup in UAE. Being a trading destination, Dubai has exempted the need of local partnership and empowers foreigners to establish and run a business.
Summary: These are a few key steps every investor and business owners should follow not only for successful establishment, but to also avoid startup failures.