Dubai is home to hundreds of start-ups, small and medium-sized enterprises. Almost 95% of the companies registered in Dubai are SMEs. Favourable government schemes, world-class infrastructure, and market potential have made Dubai is a global hub for small businesses and start-ups.
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Here are 6 points that you must consider to Start a Small business in Dubai:
1. Know Your Jurisdiction
Mainland, FreeZone, and Offshore are the 3 main jurisdictions in the UAE. You must choose your jurisdictions based on your business type, activity, and nature of your small business. Every jurisdiction has its own rules and regulations, and every business activity may not be allowed in every jurisdiction. Therefore, it is essential to know which jurisdiction is suitable for your business activities before you plan to set up your business.
Also, you must know, free zone companies are not allowed to operate their business from Mainland. To trade in Mainland, they need to partner with a local agent.
2. Understand Your small Business Setup Costs
To establish your business in Dubai, you will need to go through various steps. You will also need to understand the various regulations related to business setup in Dubai and also the costs associated with achieving every step in the process. Your small business setup cost in Dubai will depend on your business requirements, chosen jurisdictions, office location, business activities, trade license, etc. Therefore, the fees may vary for different circumstances.
Moreover, there is a lot of paperwork, clearance and approvals for company formation. There is a fee for every process. It includes attestations, legal documentation, government certification, trade name registration, visa, immigration, etc.
3. Know the Company Formation Process
Determining your small business activities and selecting the right trade license is complicated if you are not aware of the rules and regulations. In Dubai, one can add new business activities to the existing license. However, if you do it in the beginning, it can help you grow your business effectively. If you find it confusing, you can always take the professional help of small business setup consultants.
4. Understand the Process and Requisite
There are several related processes when you start your business setup registration in UAE. Therefore, a delay in one step will lead to a delay in the overall process of company formation. So, make sure you understand the entire process and requisites beforehand to avoid any delay once your procedure is underway. You can take help from your small business setup consultant for the same. It will save your time and effort and make the process easy and hassle-free for you.
5. Know the Rules and Regulations of the UAE
UAE has a strict legal structure and penalties/punishments for certain offences and failures. Therefore, ensure you have understood all the rules, regulations and legal aspects of running your business ethically before setting up your small business. It is essential to comply with the law of the UAE to sustain and succeed in business here.
6. Find a Professional Small Business Setup Consultant
Get the assistance of a small business consultant and understand the company registration process, legal hurdles and the paperwork behind so that you don’t feel exhausted and unprepared.
Also, delaying some critical processes might levy a fine on the company. Hence, it is always advisable to have a small business support consultant who will onboard you effectively to your new company by handling the registration process complying with the legal rules of UAE.
So, in short, make yourself aware of all the above-indicated 6 points to make your dreams to start a business in Dubai true. Do not hesitate to hire an experienced consultant for business setup in Dubai to make the process easy and smooth for yourself.
