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Top 8 Free Zone Business Setup Steps in Dubai

    Home Blog Top 8 Free Zone Business Setup Steps in Dubai
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    Top 8 Free Zone Business Setup Steps in Dubai

    By Reda Mansour | Blog, Free Zone | 0 comment | 8 December, 2018 | 0

    Dubai’s versatile economic system, liberal policies, and world-class infrastructure facilities attract numerous foreign expats to invest in new businesses and start-ups. The nation’s flexible time zone, competitive cost structure and potential to earn well excite investors to expand their network across the region and look out for new market opportunities. The business activities, such as trading, manufacturing, real estate, transport, tourism, hospitality including many others have shown tremendous growth in the last few years.

    Setting-up a business in UAE is not a hard cheese. However, an investor needs to understand the legal formalities and procedures mentioned below:

    • Minimum share capital required
    • The shareholding structure
    • Necessity of licensing

    Once, all legal formalities are clear, company formation is just an 8-step process.

    Understand the nature of business

    Any business activity is a basis of licensing requirements, it determines whether you require a commercial, professional or industrial license. Some activities, such as food trading, jewelry trading, veterinary activities, and legal consultancy needs government approvals to proceed ahead.

    There are more than 2100 activities listed in the Department of Economic Development (DED). In case of any discrepancies, contact DED or Business Link representatives (Business Set up Consultant) to guide you against free zone regulations and approval procedures. The company assists amateurs and newfangled individuals with self-assessments and 365 possibilities around the year.

    Winning Ownership

    Recently added ‘Landmark Law’ by UAE officials allow foreign investors to relish 100% business ownership in UAE, especially in Free Zone areas. The only hindrance is that no free trading is allowed outside the free zone, and may require additional help from other distributors or logistics companies to obtain clearance and trade in Mainland Dubai. The ownership rules are different in Mainland/Onshore and Free zone/Offshore. Mainland offers ownership of:

    • Limited Liability Company (LLC),
    • Sole Establishment,
    • Civil Company,
    • A Subdivision of foreign Company, and
    • A representative office.

    Contact Business setup consultant in UAE to understand in-depth business ownership rules in Mainland and free zone areas in Dubai, UAE.

    Know the ropes of Legal forms

    The legal consultancy firm can be opened as a stand-alone entity or a branch of an existing company. Legal procedures may vary as per different business structures and locations. It does not require a sole establishment. The Department of Economic Development lists all legal procedures and regulations to consider before opening a company in Dubai.

    Business Name on a Roll

    A trade name should be unique and matching to your business activity, after all, it plays a crucial role in the legal formation. Moreover, a trading name defines the nature of business.

    A safe bet on Share Capital

    A minimum share capital is stated in Memorandum of Association (MOA) of your proposed business activity. The Public companies’ intake minimum share capital of 10 Million AED, while insurance and investment firms require a share capital of 25 Million AED. On the top are financial institutions that require a huge share capital of 40 Million AED.

    Corner a market Location

    Location can make or break your business; therefore, office space has to be chosen mindfully. Ensure office space provides you easy access to set up electricity, internet, water, and other facilities. Business Link UAE could help you find a suitable location for your business activity.

    Hiring Ahead of the Curve

    In most cases, essential hiring can be done prior to business registration approval. However, some licenses don’t permit the hiring of staff before final authorization, such as Intelaq license holders. Meanwhile, you can contact local contractors or agents for your operational requirements.

    Stay on your toes with Local support

    Local support is advisable for effective and recurrent business growth. Business Link UAE supports you in getting a local sponsor and Local service agent for a business startup in Dubai. It additionally assists in PRO activities, vat assistance, liquidations, legal procedures, documentation, feasibility studies and business planning in Dubai.

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