Best Practices Of Starting A New Business Venture In Dubai

In the last decade, UAE has emerged as one of the top-most economic destinations in the world. The seven Emirates that comprise UAE have been registering healthy growth margins and attracting the attention of investors and expats alike.

Of the seven Emirates, Dubai has been ranked by the World Bank as the 11th Most Preferred Destination for starting a business. The reasons for Dubai’s growth and rankings on the WB list are pretty obvious-

1. The growing import and export trade opportunities are lucrative from a business standpoint
2. The growth of Dubai’s tourism industry is expected to grow in double digits well into 2023.
3. The political stability and governance have definitely played a major role in improving Dubai as an investment destination

In this article, we are going to list down some important best practices for starting a new business in Dubai. If you are someone that is looking to move to Dubai or start a profitable business, please check out what we have to say in the article.

1. Sponsor or Free Zones: Choose your pick

If you want to start a new business in Dubai, you have two main options in front of you. If you choose to work with a local sponsor and hand over 51% ownership to them, you are spoiled for choice in terms of the locations for starting a business.

On the other hand, if you want to retain 100% complete ownership, you will have to choose from the government’s designated Free Economic Zones in Dubai. This is not to say that they are not located at prime locations. It is just that your selection will get limited.

Most foreign entrepreneurs and investors opt for a locally registered LLC since it affords them the biggest benefits. You not only get your pick in terms of the location but also working with a local sponsor takes off some of the heat in case of problems.

2. Working with a Business Law Firm from the Start

Business processes, rules, and regulations undergo constant changes all the time. If you keep bothering yourself with them all the time then you might not have time to do anything else. One credible way to take care of the same would be to hire business lawyers.

While setting up a business in Dubai is fairly easy as compared to other parts of the world, you still need to do the paperwork and documentation. As a foreigner, you might not be well-versed in the legal process in Dubai. This is where business lawyers in Dubai will help you out.

If you are in industries like real estate, tourism, or entertainment, you will have to pay a small tax. Maintaining the taxation paperwork, working for licenses, certifications, and compliances all require active engagement with legal experts. You do not want any run-ins with the law.

3. Getting a Bank Account for your New Business in Dubai

Every new business is required by UAE laws to open a registered bank account. While this is a relatively straightforward process, make sure that you are taking help from your law firm with regard to this. You will have to submit incorporation papers, along with your Visa detail.

There are a host of international and national banking partners you can choose from. All you need to do is understand what are the charges that you will be incurred when using your account. Also, ensure that the same is linked to the government portal right from the start.

Please understand that financial propriety is taken very seriously in Dubai. This is why you need to be financially transparent in your dealings at all times. Any misdemeanor in this regard is likely to be taken seriously by the authorities and can result in fines and penalties.

The Final Takeaway

In the next few years, UAE, and Dubai are going to establish themselves as one of the hottest destinations to do business. already enjoying its status as one of the world’s best-connected cities in the world. Dubai’s demand among the investor and entrepreneur community is for all to see. This means that while the opportunities do exist, the competition is also increasing. Now is the right time to set up a solid and strong base in Dubai for your business. If you have any more questions on starting a new business in Dubai, please let us know in the comments.